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| Council tax: households owe billions ahead of bill rise | Council tax: households owe billions ahead of bill rise |
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| Struggling households owe billions of pounds in unpaid council tax, but bills are expected to keep rising in the years ahead. | Struggling households owe billions of pounds in unpaid council tax, but bills are expected to keep rising in the years ahead. |
| Newly-published figures show £6.6bn is owed to local authorities in England, with an extra £642m having been added to those arrears in the year to April. | Newly-published figures show £6.6bn is owed to local authorities in England, with an extra £642m having been added to those arrears in the year to April. |
| Separate data from Scotland and Wales means the total cumulative amount owed in the three countries has hit more than £8bn. | Separate data from Scotland and Wales means the total cumulative amount owed in the three countries has hit more than £8bn. |
| Campaigners have called for a more sympathetic approach to council tax debt collection, rather than the use of bailiffs. | Campaigners have called for a more sympathetic approach to council tax debt collection, rather than the use of bailiffs. |
| While the government is proposing a change in the rules over the way unpaid bills are chased, the Treasury is also assuming council tax will rise by 5% a year in the future. | While the government is proposing a change in the rules over the way unpaid bills are chased, the Treasury is also assuming council tax will rise by 5% a year in the future. |
| Asked whether the Treasury was "baking in" a 5% increase, Chief Secretary Darren Jones told a committee on Wednesday examining the recent Spending Review: "We are doing that, yes." | |
| Councils can raise council tax by up to this amount, although they can go above this cap if they hold a local referendum or get approval from central government. | Councils can raise council tax by up to this amount, although they can go above this cap if they hold a local referendum or get approval from central government. |
| Falling behind | |
| The latest figures for England show that, in the 12 months to April, local authorities collected a total of £41.2bn in council tax, irrespective of the year to which it related. | |
| This was an increase of £2.8bn, or 7.2%, compared with the previous year. | |
| However, the amount cumulatively owed has risen by 11% over the same period. | |
| In Scotland, £1.5bn is owed, and there are arrears of £160m in Wales. | |
| Charities have long argued that the method of council tax collection in England punishes those who are genuinely struggling to pay. | |
| Non-payment of a monthly bill after three weeks, or three late payments, in England means the council can send a demand for the remainder of the year's council tax to be paid in full. | |
| They can later send in bailiffs to recover the debt. | |
| "People in council tax arrears are overwhelmingly on low incomes, and many are living in poverty," said Toby Murray, from charity Debt Justice. | |
| "Rather than help, councils are sending in the bailiffs - punishing people for struggling with their bills. Councils should end the use of bailiffs for council tax debt collection and instead introduce urgent reforms." | |
| The government recently unveiled plans to cap the fees added to debt when going to court and to loosen the rules on when a household may become liable for a full-year's bill. | |
| Ministers are already reviewing debt enforcement practices, including the conduct of bailiffs. | |
| They are also proposing making 12 monthly payments of council tax the default option, rather than 10. |