Council tax debt is the last remaining form of debt for which you can still – in England at least – get sent to prison. Thankfully, this is largely a notional position. Even so, new figures from the Ministry of Justice reveal that in 2024 19 people did receive suspended sentences for their non-payment.
At StepChange Debt Charity, the largest provider of debt advice and solutions in the United Kingdom, over the last few years we have seen a significant increase in the prevalence and amount of arrears for council tax. As ready partners for local authorities to work jointly with in reducing the impact of debt on both individuals as well as their own increasing revenue debt gap, our stance is that the option to imprison people for – to put it simply – being in debt, belongs in the past.
It's not that we don't recognise the difficulties local authorities face. Council tax arrears have continued to rise – the £6.2bn owed in England alone in 2025 is some 85% higher than in 2020. We understand the need to ensure that as far as possible local taxpayers meet their payment obligations, so that funding is available for local services to benefit communities. It's a tightrope of a task.
The problem, though, is that there can be a tendency for communications from some councils to those who begin to fall into arrears to give off a default assumption of ‘won't pay' rather than ‘can't pay'. This can be hugely intimidating and counterproductive to people who are struggling with debt. With the detrimental impact of the cost of living crisis on household finances well documented, it's an outdated approach to what has become a much more complex situation.
For example, sometimes the very first letter that a local authority sends after a single missed payment highlights the risk of imprisonment if you fail to pay. Imagine already struggling to stay afloat financially, and being on the receiving end of that letter: does it incentivise you to get in touch with the council and explain your circumstances? Or does it make you feel nervous about making contact, knowing that you can't afford to pay, and fearful of the consequences?
It isn't rocket science to work out that, for some people at least, this approach evokes feelings of distress and helplessness and leads to disengagement. From there, it can be a short step to councils instructing enforcement agents (adding further fees to the arrears already accumulated), an experience that can layer on stress for people already under pressure.
This can generate a variety of poor outcomes. Out of fear, people may borrow more to pay or agree to unaffordable payment terms that simply displace the debt owed to the council in worrying ways – such as cutting back on food, foregoing household essentials or items for children, or turning to high cost credit. What's more, falling behind on other bills can exacerbate wider debt problems. While the local authority's council tax collection rate may improve on paper, this can come at the cost of significant detriment to the resident – with implications for wider public services.
Of course, once enforcement agents are involved, people may become even more frightened about the risk of imprisonment – and even less likely to feel able to engage. Our evidence demonstrates how the sanction of imprisonment is too often used as a shock tactic that can cause more harm than good; without it, the council tax collection landscape would look more akin to the regulated credit sector – that is supporting those in financial difficulty proactively and using enforcement measures as a latter resort. Here, people who fall into arrears know that their lenders have a regulated duty to try to help them.
We're aware that the picture we're painting here of council tax debt collection techniques is a bleak one. We fully recognise that some local authorities have thought hard and used behavioural insight techniques to take a more encouraging approach to non-payers, recognising that they may be struggling and adopting a more humane approach to communications. Yet recent research suggests that such enlightened policies remain the exception rather than the rule.
Scotland and Wales have both parted ways with the imprisonment sanction, and for all the reasons above, and we want to see England follow suit. But we all need to go further to address the undoubted problems around council tax non-payment. In our response to the Government's consultation on council tax reform that closed in September, we also called for measures to address certain areas.
Affordability. As it stands, council tax is simply unaffordable to large groups of households whose debts are growing. Therefore, we need to see an end to the postcode lottery of Council Tax Support, funded by central Government – ensuring that 100% reductions can be re-established for those on the lowest incomes.
Awareness of Council Tax Support. Increasing awareness, automation and uptake to make sure those who are eligible, receive it.
Debt collection. Develop a statutory protocol for council tax collection, which would require councils to take certain steps before charging the annual bill, seeking a liability order or taking enforcement action.
Enforcement action. Properly establish that enforcement agents should only be used as a last resort, which includes councils being encouraged to completely exempt recipients of Council Tax Support from bailiff enforcement action.
At StepChange we're keen to work constructively on this difficult issue. We have decades of expertise in helping people repay their debts and identify a way forward for those in financial difficulty. It's time for an update to council tax and other Government debt collection practices, to bring about a more modern system that delivers betters outcomes and reduces fear.
Emily Whitford is a senior public policy advocate and council tax and bailiff expert at StepChange debt charity
