Millions of households in England are facing an additional financial burden as council tax rates are set to undergo a significant increase, prompting concerns from debt advocacy groups.
Recent data from the Ministry of Housing, Communities and Local Government reveals that the average council tax for Band D properties in England will see a £111 hike, marking a 4.9% increase to reach £2,392. This is up from the previous average of £1,966 in the 2022/23 period.
Local authorities in England are permitted a maximum increase of 4.99% without requiring a resident referendum. Out of 384 authorities affected by this rule, 274 opted for the maximum allowable rise, a decrease of 21 from the previous year. Additionally, 50 authorities raised their bills close to the maximum limit, while 21 either maintained the same rates or decreased their average council tax for Band D properties.
This rise in council tax rates coincides with experts warning that essential expenses, including council tax, are anticipated to contribute an extra £214 to the typical family’s yearly expenditures.
Debt charity StepChange has cautioned that the impending increase effective from April 1 could lead to a surge in individuals falling behind on payments, potentially resulting in heightened enforcement measures. The charity reported an 86% surge in average council tax arrears among those seeking assistance, increasing from £1,146 in 2019 to £2,137 in the past year.
Peter Tutton, the director of policy, research, and public affairs at StepChange, emphasized the rapid escalation of council tax debt for individuals missing payments, often resulting in demanding requests for full-year settlements and enforcement actions that add stress and fees.
The spokesperson for the Local Government Association highlighted the financial challenges faced by councils, necessitating council tax increases to safeguard services amid household financial strains. However, the association stressed the limitations of council tax as a funding source, advocating for substantial new funding and comprehensive reforms to ensure the financial sustainability of councils and the delivery of expected community services.
