More than 250,000 people across Yorkshire were in council tax arrears last year as the government tries to address “aggressive” debt collection tactics.
New figures from the GMB Union show there were 262,314 accounts in arrears in the 2024-24 financial year across the six Yorkshire local authorities that responded to freedom of information requests. The total owed amounted to £258 million.
Of these, 151,000 people had debt management proceedings launched against them, while 106,000 were taken to as cash-strapped councils attempted to claw back the debt.
Currently, councils can chase council tax debt within three weeks of a missed monthly payment. They can often demand payment for the entire year and add admin costs to the charge.
Money expert said council tax debt collection “would make banks blush” it is so aggressive. He said: “It’s the most vicious and damaging form of legal debt collection out there – causing counterproductive misery for millions.”
Earlier this year, the government announced reforms to a debt collection process that has not been updated since 1993. From next April, households will be given 63 days to clear any debt before councils can ask for a full year’s payment, while admin costs will be capped at £100. Council tax billing will also change from 10 payments per year to 12 monthly payments by default.
Mr Lewis said: “In a perfect world, it would be even longer and the lower cap would apply, but this is still a hugely welcome change to a 33-year-old process.”
Local Government Secretary Steve Reed said: “Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month’s council tax bill was missed. We will stop this and make the system fairer by supporting families who fall behind. I want to thank Martin Lewis and his charity for their tireless campaigning, shining a light on this crucial issue affecting millions of people.”
had the highest number of accounts in arrears with 107,383. They owed more than £110 million, while more than 43,000 households had been taken to court.
Rachel Harrison, GMB National Secretary, said: “These horrifying figures show our council tax system is completely broken Not only is the banding system woefully out of date, but forcing cash-strapped councils to pursue 100,000 people through the courts just to make ends meet can’t be the right way to do business.
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“Austerity left deep scars on all our public services, which will last a generation or more. Meanwhile the lack of authority funding often means low pay for the people we rely on to look after our loved ones, to take our rubbish, to keep our towns and cities running. To fix all this, we need more guaranteed central government funding, progress on council tax reform so the richest pay their share and changes to business rates so that authorities get more regenerate our high streets.”
Minister for Local Government Alison McGovern said: “We know the way council tax is run is outdated and confusing and has stopped some of the most vulnerable people from accessing the support they need. Our changes will cut through the complexity and make sure that council tax is fit for the 21st century.”