Who Are Most Likely to Suffer From Council Tax Issues?

Council tax arrears are a growing problem across England and Wales, and can lead to serious consequences including enforcement agent visits and liability orders. For anyone already struggling financially, falling behind on council tax can quickly become one of the most stressful situations to deal with. But who is most likely to end up in council tax arrears, and what can you do to avoid it?

This article was originally published in a previous year and has been fully updated for 2026 to reflect current legislation, figures, and guidance.

Those most at risk tend to be people on lower incomes, particularly households affected by benefit changes over the past decade. The removal of the spare room subsidy (often called the bedroom tax) in 2013, combined with the shift from council tax benefit to localised council tax reduction schemes, left many families paying council tax for the first time. By 2025/26, councils across England collected over £40 billion in council tax annually, yet arrears continue to climb. Single-parent households, people on Universal Credit, and those in temporary or insecure work are disproportionately affected.

The pressures of rising living costs, higher energy bills, and stagnant wages mean more households than ever are having to choose between essentials. When council tax falls behind, local authorities can apply to a magistrates’ court for a liability order, after which enforcement agents (bailiffs) can be instructed to collect the debt. The fees added at each stage only make things harder to manage.

The good news is that help is available, and acting early makes a real difference. Your local council may offer a council tax reduction, a discretionary hardship fund, or a manageable payment arrangement. Citizens Advice and StepChange also provide free, confidential debt advice. If enforcement agents have already become involved, you still have rights, and there are rules they must follow under the Taking Control of Goods Regulations 2013.

If you are dealing with council tax arrears, do not ignore the problem. Reaching out for advice sooner rather than later can prevent the situation from escalating, protect your household, and help you regain control of your finances. Anyone can fall into council tax debt, but with the right support, it does not have to define your future.