Thousands get up to £800 discount on council tax bills as people in arrears hit £6bn - can you claim?

A charity is urging the Scottish Government and the new Government in Westminster commit to building up financial resilience among those on lower incomes as a way to make essentials bills more affordable.

They say it’s vital that households aren’t pushed into debt through covering essential living costs.

The average council tax arrears per client in Scotland has risen by 11 per cent year on year, according to StepChange, a debt charity in Scotland.

Their latest quarterly client data found that the average council tax arrears amount among Scottish clients stands at £2,075 during the second quarter of 2024, up from £1,871 in Q2 of 2023 – an increase of £204.

The proportion of clients with council tax arrears has also risen – up to 34 per cent in April to July 2024, from 31 per cent during the same period of the previous year.

As lower income households continue to feel cost of living pressures, they are urged to check if they qualify for a Council Tax Reduction (CTR).

Thousands of people were receiving a CTR on their annual bill, the latest figures from the Scottish Government show.

At the end of March this year, some 461,550 people were receiving a CTR of around £800 on their annual bill.

The data indicates that one-in-five households are being supported through the scheme, which is not available anywhere else in the UK.

The CTR is only available for Scottish residents on a low income meaning those on benefits could qualify.

StepChange found that there has been an increasing number of people on benefits seeking help with debt problems, and this could be a way to relieve them of some financial issues.

CTR claims can help boost an individual's summer finances as it can be backdated to provide a lump sum.

To find out about getting help with Council Tax, Scottish residents are urged to contact their local authority and explain their financial situation as they may be able to put their account on 'hold' and agree the next payment date.

Sharon Bell, Head of StepChange Scotland, said: “It’s been an eventful summer so far, with a great deal of change in the political landscape. While energy bills are lower in summer and inflation has fallen in recent months, we mustn’t assume that financial difficulties for households have gone away.

“Our clients, particularly those on the lowest incomes continue to struggle to cover their bills each month, with the average amount of debt across essential bills like council tax and energy still rising.

“We know that council tax in particular is a bill that our clients have struggled with for a number of years, and council tax collection practices are a particular issue – often plunging people into more hardship, rather than helping them to repay."

Council tax arrears in England have reached a record high of £5.97billion, with a further £488million - or nine per cent - now owed compared to last year, data from the Department for Levelling Up, Housing and Communities suggests.

Outstanding arrears have increased 67 per cent since 2019, growing from just £3.58bn five years ago.

National Debtline said a third of its callers are in council tax arrears, and that it is the most common priority debt its advisers heard about.

The charity said that on average its callers owe £1,762 in arrears, which has increased by 49 per cent from just £1,181 in 2019.

Who is exempt from Council Tax?

People won't pay council tax if:

• They are a full-time student
• They are in the Armed Forces in Forces accommodation
• They live in a care home or hospital
• Their home is unoccupied and empty (up to six months) - for example, if they've gone into hospital
• They have a severe mental impairment (e.g. dementia) - if they only live with someone who has dementia, then they’ll be treated as a sole occupant as they will be disregarded, but they won’t both be exempt