Kirklees Council is owed £36.6m in unpaid Council Tax, as the cost of living crisis continues to take hold.
This eyewatering figure, published by the Ministry for Housing, Communities and Local Government, contributes to a national total of arrears which comes to the sum of £6.6bn. Research from charity, Money Advice Trust, revealed that as of March 2025, 2.2 million people in England (5%) were behind on their Council Tax bill.
The Trust says that councils are increasingly reliant on Council Tax revenue to fund essential services like social care, local schools and rubbish collections. In Kirklees Council’s most recent budget, Council Tax was once again put up by 4.99%, with 2% earmarked for social care for older people and residents with disabilities.
With bills rising, many people already struggling to pay have found themselves trapped in a “vicious cycle”, the charity adds.
A spokesperson for Kirklees Council said: “Arrears detailed are inclusive of all outstanding arrears for previous years. On average in the fullness of time, the local authority looks to recover 98.5% Council Tax. Our arrears are comparable with other similar local authorities, we recognise that different parts of the UK may have different collection rates, due to many factors including deprivation.
“We always pursue debts where it makes financial sense to recover them and where circumstances change in relation to historic debt, we will also pursue that. We follow standardised recovery procedures.
“Our team are committed to robust recovery from those with propensity to pay and equally are committed to supporting residents on low incomes via our Council Tax Reduction scheme. Additionally the local authority offer assistance through our Local Welfare Provision team Cost of living | Kirklees Council and work to maximise benefit take up via a variety of means including BetterOff Kirklees.”
Steve Vaid, Chief Executive at Money Advice Trust, the charity that runs National Debtline – free independent debt advice service – commented: “Unless changes are made at a policy level, arrears are likely to keep climbing. At National Debtline, we’re calling for improved collection practices, as well as greater investment in Council Tax support schemes, to prevent people falling behind in the first place.”
Current rules mean that households can become liable for their full annual council tax bill if they miss one payment, which can result in a quick escalation to bailiff action. The government has recently set out proposals to extend this period, so that people have more time to engage and seek support, with this welcomed by National Debtline.
Mr Vaid added: “Unwaveringly high arrears levels in Kirklees and across England underline the need for urgent action. Every day at National Debtline, we see how Council Tax continues to be one of the most common debts people face.
“Councils have a vital role in helping residents with unmanageable bills and to ensure Council Tax – crucial to funding local services – is collected in a way that is fair and affordable.”
