Huge rise in unpaid council tax in Wales as thousands brought to court

Huge rise in unpaid council tax in Wales as thousands brought to court
They have more than trebled in a decade and has impacted council services
Swansea Council had the highest level of arrears and outstanding council tax in Wales at the close of 2024-25 - £17 million and £26.3 million respectively
(Image: John Myers )
Council tax arrears in Wales have more than tripled over the last decade and now exceed £160 million. When householders miss council tax payments they are in arrears. As well as the stress this can cause, it's money owed to 22 local authorities for a range of services like adult social care, kerbside waste collection and maintaining parks.
At the close of 2014-15, arrears stood at £47.9 million in Wales. At the end of the 2024-25 financial year they had shot up to £160.2 million, according to newly-published Welsh Government data.
‌
Figures are also collected on outstanding council tax. A Welsh Government spokeswoman said this consisted of missed "in-year" payments as well as arrears for earlier years. The running total for outstanding council tax at the end of 2024-25 was £263 million in Wales - again more than triple the figure of £83.9 million a decade previously.
‌
Local authorities set their level of council tax every year and it has been rising. There are various discounts and reductions, for example if you are disabled, live in a low-income household or live alone. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here
Council tax bills include a police precept, which is set by police and crime commissioners subject to approval by police and crime panels. These have been increasing too. The bills can also comprise a community council precept depending on where you live.
Consumer charity Citizens Advice describes council tax as a priority debt which should be addressed before debts like credit cards. The Welsh Local Government Association (WLGA), which represents councils, said people struggling to pay their council tax should contact their local authority straight away.
Article continues below
Swansea Council had the highest level of arrears and outstanding council tax in Wales at the close of 2024-25 - £17 million and £26.3 million respectively, to the nearest decimal place. It also wrote off the highest amount of arrears - £1.4 million.
Also at the high end were Gwynedd Council's arrears, at £13.4 million. Its outstanding council tax was £21.6 million. Cardiff Council's arrears were £13.3 million and its outstanding council tax £26.1 million.
‌
Larger, more populated councils like Swansea and Cardiff are likely to have higher overall arrears but this may not be the case in terms of arrears per household. Swansea Council said it was fifth highest in Wales by a per household measure.
Asked about its arrears, a Swansea Council spokesman said: "The figures quoted are a snapshot in time and in the longer term we collect almost all of what is owed. We intentionally take a more progressive approach to debt recovery than other councils and give people more time to get out of arrears, which helps them prevent falling into higher levels of debt. This is proving to be a very effective strategy and we recovered over £13 million of debt last year. However, we will use court action to recover debt whenever we have to."
He added: "We accept that in the current cost of living crisis, the collection of council tax may be slower that we would like in some cases. But we will continue to pursue the debt until it is either paid, or all appropriate avenues of recovery currently available to us have been exhausted."
‌
Swansea Council and Carmarthenshire Council talk more about their actions and strategies below.
Another way of assessing council tax collection is by looking at collection rates. In Wales, 95.6% of total council tax set by local authorities was collected in 2024-25, but it varied from area to area.
Neath Port Talbot Council topped the collection rate with 97.7%, Gwynedd's figure of 92.9% was the lowest, while Swansea's was 94.5%.
‌
A decade ago council tax collection rates averaged 97.2% in Wales, 1.6% higher than currently. Major shocks such as the Covid pandemic, the energy price spike partly caused by Russia's invasion of Ukraine in 2022 and wider inflationary pressures have significantly affected people's household finances since then, although wages have also increased.
Although collection rates have only dropped 1.6% during a period when arrears have more than tripled, council tax has soared.
In 2024-25, the total council tax set by the 22 authorities was £2.33 billion compared to £1.28 billion 10 years previously - a rise of 82%, although again it varies from council to council. And, if you collect a lower proportion of a much bigger figure, the resulting number will be pretty large.
‌
The 82% increase over the decade doesn't mean an average annual council tax rise of 8.2% because each increase is embedded into that year's council tax total and every year after. So the next year's increase is based on a new, larger amount.
The WLGA said local authorities planned for a certain level of council tax non-collection each year as well as taking into account discounts and reductions available to some households. Swansea Council said it actually collected more last year than it initially assumed it would.
‌
Asked how councils made up for the lost council tax revenue, the WLGA said it was a mixture of service cuts and reduced financial resilience.
The WLGA said it advocated a reform of council tax - which is a tax on domestic property - including revaluing properties and making the system more progressive. This is likely to happen with the passing of the Local Government Finance (Wales) Act last year, although there will be losers as well as winners.
"The current system is based on outdated property values from 2003 and doesn't reflect the real housing market today," said a WLGA spokesman.
‌
"We support the aim to make council tax more progressive, so that what people pay is more closely linked to what their homes are actually worth. We want any changes to be carefully planned, involve local communities, and come with protections for households who may face higher bills as a result."
Last year's legislation allows for property re-evaluations every five years in Wales, starting from 2028. The Welsh Government has said it sought to share the burden more evenly rather than raising more taxation.
Asked about the latest council tax arrears figures, a Welsh Government spokeswoman pointed out the still relatively high collection rates in Wales, and added that its council tax reduction scheme provided around £244 million of support for nearly 260,000 low income and vulnerable households. She added: "Many families are still feeling the impacts of a challenging economic position in recent years."
‌
Councils get the bulk of their funding from the Welsh Government, via an annual settlement called the revenue support grant and a share of business rates, not council tax.
For example council tax bills in Swansea came to £169 million in 2024-25, according to the Welsh Government data. Although the council didn't budget to collect all of this, the £169 million was to help fund day-to-day expenditure of £590.8 million. As an aside a council's gross budget, which includes rents, fees and other specific grants, is a lot higher.
Councils say they face growing financial pressures, such as greater demand and complexity in social care coupled with an ageing population, rising education costs and more demand for housing, and that increases in central Government funding haven't been keeping pace.
‌
Meanwhile, proposals to cut services such as libraries or increase car parking charges to avoid higher council tax hikes are politically awkward for councillors.
Council tax helps fund key services
(Image: Getty Images )
No-one knows if council tax levels will see another 82% rise in a decade's time. The early signs aren't promising for those struggling to pay as the average increase across Wales this financial year, which began on April 1, was 7.2% - the highest uplift since 2003.
‌
If you are struggling to pay council tax, the Welsh Government's advice is to contact its advice services through Advice Link Cymru and check whether help is available. The WLGA urged people to contact their council immediately.
Asked if it would it be fair to assume that arrears would keep rising the more council tax went up, the WLGA said: "It may certainly be a factor which is why we push for fair and sustainable funding from the Welsh Government."
The Local Democracy Reporting Service asked Swansea Council and Carmarthenshire Council questions about its arrears and council tax collection.
‌
According to Welsh Government data, arrears in Swansea were £17 million at the end of 2024-25. Council tax ranged from £1,345.43p to £4,709 across property bands A to I in that year.
- Why do you think Swansea Council has the highest council tax arrears in Wales?
The figures quoted are a snapshot in time and in the longer term we collect a high percentage of what is owed, said Swansea Council. As one of the biggest local authorities in Wales with higher-than-average levels of poverty in some of our communities, it is inevitable that council tax arrears will be higher than in other areas of the country. In the current cost of living crisis not everyone can pay their council tax immediately. Where we have evidence of hardship, we can allow more time to pay whilst retaining the ability to collect much needed income the authority can use to provide essential services.
‌
- When you set the council tax base each year do you factor in a certain level of arrears, and if so is are the actual arrears higher than expected?
Every local authority assumes an initial collection rate below 100%. In 2023-24 we collected £2.5 million more than our initial assumption and in 2024-2025 we expect to collect £2 million more. A council spokesman said the figure it expected to collect, rather than the total amount, helped the council set its budget. The surpluses, he said, were due to some historic arrears being recouped in these years.
- What should somebody who is getting into arrears do, and what support is out there?
‌
We always encourage people to contact us as soon as they find themselves in difficulty. We want to help people with financial problems so that they can agree ways to pay what they owe. We can signpost them to debt support and our benefits teams to ensure they are getting any benefits or council tax reductions to which they are entitled. However, we will take court action where necessary.
- What action does the council take to recoup arrears, and does this involve prosecutions sometimes?
See above - our aim is always to agree a plan for the debt to be cleared. Anyone who falls behind in payments is issued with reminders. The most important thing is that people talk to us so that we can reach an agreement. Court action is always a last resort after other approaches have not worked.
‌
- If prosecutions do take place, can you provide numbers?
Overall, in 2023-24 and 2024-25, 20,470 summonses were issued. Of these, 3,400 cases were not progressed because acceptable payment arrangements were agreed or the debt was paid in full. In the remaining cases liability orders were granted by magistrates. These orders give a council permission to collect the debt.
- How does the council offset the lost income from arrears or does it mean more savings or income-raising measures have to be implemented?
‌
No, we don't need to make more savings or take more income-raising measures. As noted in question 2, our budgets take into account the expectation that 100% of council tax will not be collected in its first year, but overall about 99% of it will be collected over time. We only write off debt in special circumstances when, for example, the taxpayer has passed away with no estate or in cases like bankruptcy where the cost of continuing to pursue payments are higher than the likely income expected.
- Council tax goes up everywhere, and in Swansea the increase hasn't been as high as some councils of late, but do you think arrears will keep rising the more it does go up?
The council works hard to keep council tax rises as low as possible because those on low or fixed incomes are most likely to be affected by them. However, we strongly encourage people who are struggling to pay their bills to get in touch with us as quickly as possible so we can help them reduce the risk of non-payment.
‌
Carmarthenshire Council also responded to questions about arrears and council tax collection. Its arrears stood at £12.3 million at the end of 2024-25. Council tax ranged from £1,345.43p to £4,709 across property bands A to I in that year.
- What does Carmarthenshire Council do to support people who are struggling to pay their council tax?
We offer a wide range of support. We have a personal budgeting officer who works with individuals facing financial difficulty, helping to establish affordable and sustainable payment plans for council tax arrears. Our teams carry out targeted outreach to residents identified as potentially struggling based on their engagement or payment history.
‌
Our revenues team is part of the council's tackling poverty forum, working with third sector partners including foodbanks and debt charities to signpost residents to appropriate support.
- What does Carmarthenshire Council do to recoup arrears?
We follow standard council tax enforcement and regulatory processes, including issuing reminders and summons where necessary, applying for liability orders via the courts for non-engaging residents, and using methods such as attachment to benefits, attachment to earnings, and referral to enforcement agents in cases where payment is not forthcoming. Our approach is always to encourage engagement first and enforcement is used only when other options have been exhausted.
Article continues below
- Is Carmarthenshire Council expecting increased arrears in 2025-26 given the 8.9% council tax rise?
At present, we have not adjusted our council tax collection rate assumptions for 2025-26.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Herald Scotland

15 hours ago

• The Herald Scotland

The poverty premium: why do we tolerate harm?

For those who work in a frontline service like the Citizens Advice network, this isn't an abstract idea simply referenced in academic papers; it's reality. I grew up in extreme poverty so I understand it only too well. It's the reason why I got into money advice as a career and why I'm so passionate about it. CAB advisers see the poverty premium every day in the faces of the people who come to them for help. More often than not, these people are desperate, usually at a point of crisis where they have nowhere left to turn. I recently heard about a woman who came to her local CAB in distress after falling into rent arrears and facing eviction – a result of a series of failures by systems that are meant to help her. It was a snowball effect. She experienced earnings arrestment for council tax, her Universal Credit was cut, and she was using her credit card to just stay afloat. This is just one of thousands of examples where CABs across Scotland are acting as a backstop for systemic failure across the economy. For a start there's the credit market. People on low incomes often don't qualify for low-interest financial products so are forced to use the more expensive high-interest options. Then there's the banking system. As banks continue to move away from our high streets, anyone who doesn't live near a branch and isn't tech savvy will have to travel to access basic services. If they're lucky, there might be an ATM in their local area, but they might then face a £2 charge to simply access their money. And then there's the energy market, where people experiencing poverty or are on lower incomes often pay more for their energy due to the low energy efficiency of their home. Many also pay when bills arrive rather than by direct debit (see above) which can result in a premium of £130 more per year. This is how the cumulative effect builds up. Some estimates put the total poverty premium at an average of £500 per year. If you're struggling financially in Scotland today you get financially penalised for it. In other words, it costs more to have less. So why don't we explore solutions like more flexible banking and credit options or re-designing cash access infrastructure and actually help people who need support, not push more costs onto them? We've repeatedly called for a social tariff to be applied to all sectors, including the energy market, and for improvements in social security so that people have more money to begin with. These ideas are not rocket science. They're sensible, pragmatic and perfectly achievable, but only if ministers, regulators and institutions have the imagination and the will to achieve them. The poverty premium shames us, yet it could be eliminated. Are we willing to do that, or will we just keep tolerating harm? Sarah-Jayne Dunn is manager of the Financial Health team at Citizens Advice Scotland

Daily Mirror

20 hours ago

• Daily Mirror

'I saved over £1,300 by cancelling payments and cutting my bills'

Every year I grit my teeth and go back through all of my accounts to look for sneaky subscriptions hiding in my regular payments, says consumer rights expert Martyn James If you want to save some cash, then cancelling subscriptions and regular payments that you no longer want or need is the most effective way to do it. In fact, you can even claim money back. Every year I grit my teeth and go back through all of my accounts to look for sneaky subscriptions hiding in my regular payments. This is worth doing, because a few years back I managed to save over £1,300 by getting rid of subscriptions I didn't want or need and by renegotiating contracts. ‌ Spotting regular and unauthorised payments isn't easy. Most of the banking apps I've seen that list subscriptions seem to only highlight obvious direct debits, standing orders or utility bills. ‌ However, businesses are often able to disguise the money they debit from you in the depths of your accounts with cryptic terms. So for now, you'll still need to go back through your bank and credit card accounts for a year to find all these debits. Shockingly, payments can even be taken from your mobile phone bill! Above all else, keep an eye out for subscription traps. What is a subscription trap? The term 'subscription trap' is most commonly used to refer to offers where you sign up for a free trial, like an online shopping membership scheme or an annual contract for goods or services. Many subscriptions are legitimate, but others are outright rip-offs, charging you for things you neither want or need. Citizens Advice estimated that people were forking out £160 on average on unwanted services. The good news is the law is clamping down on subscription traps, thanks to the Digital Markets, Competitions and Consumers Act 2024. We are still waiting to find out precisely how the new law will work, however, anyone trading in the UK should be aware that trapping people in to regular payments and making it hard to get out of these agreements is going to be more or less banned – so you can fight back now! ‌ What are my rights with subscriptions? A subscription is any service where you pay up front or a regular fee to receive a product or service in return. Subscriptions most commonly bill you monthly, annually or irregularly. When you buy things, you enter in to a contract with the business or organisation. A contract is any agreement where the seller agrees to provide goods or services in return for payment. This doesn't have to be in writing. A contract occurs when you buy in a shop, online or over the phone – even if you don't get a formal, written agreement. ‌ I often mention them in this column, but the Consumer Rights Act and the Consumer Contract Regulations are the laws that protect you when you are paying for goods and services. These laws cover things you've bought and paid for don't turn up, aren't as advertised, are damaged or don't work or don't last a reasonable period of time – and that includes subscription services. You may find that some subscriptions charge you different amounts each month, but only businesses are only allowed to do this if they give you advance notice or seek your permission. One of the most notorious subscription trap scams is where you sign up for a free trial of goods or services, only to be hit with major debits when the trial period ends – often for substandard goods or things that don't even turn up. ‌ This practice is likely to be massively clamped down on in the coming year. But if you've been affected now, cancel the payment with your card provider or bank straight away and demand your money back. Can I cancel a contract or subscription if I'm not happy? You certainly can! If you want to leave a contract that you are 'locked in to' for a longer period, like a gym membership or a magazine subscription, you can leave without paying a penalty if you demonstrate you aren't getting what you paid for. For example: If you aren't getting what you were explicitly told you would get when you signed up to the subscription. The service has changed significantly over time. The quality of the goods or services has been misrepresented. You can also ask for a refund if you've paid up front for an annual subscription. ‌ Dealing with a difficult retailer Sometimes shops refuse to refund you or let you out of contracts even though you have every right to. They are usually gambling on the fact that you'll shut up and put up. Don't! If the business isn't playing ball, ask for an email address so you can make a formal complaint. Cite the laws I mentioned in this article and why you are unhappy with the service and why you don't think it's what you paid for. Make it clear what you want to resolve the complaint too. This might be a full refund, a partial or proportional refund or simply to exit the agreement without fees or charges. ‌ If they are still being difficult, you'll need to threaten the business with the Small Claims Court. You can read my guide about how this works. How do I deal with dodgy subscription trap firms? If you've spotted that you've been paying for a subscription trap after a free trial – or even when you're being debited for a service you never wanted or needed – play hardball. These contracts can be cancelled immediately with your bank, card provider or e-payment service. If you were misled in to taking out a contract or you didn't authorise a business to charge you, you can ask for a full refund. The firm has to be able to prove you agreed to the contract. Even if you signed up to a free trial, you can ask for your money back if you are being charged amounts that you never agreed to.

Wales Online

a day ago

• Wales Online

Backlash from thousands who want parking fees scrapped at popular Welsh beach

Backlash from thousands who want parking fees scrapped at popular Welsh beach The council say the charges help to maintain an important public space Aberavon seafront had parking charges introduced earlier this year (Image: Neath Port Talbot Council ) Members of Neath Port Talbot Council are set to discuss options for parking in Aberavon later this month after calls from residents to reinstate free parking along the beachfront. The move came after a public backlash when the local authority introduced parking charges at The Princess Margaret Way laybys along the beachfront in April. This led to the creation of a petition with thousands of signatures from locals which they said was launched in order to fight the decision and "make the beach more accessible" for residents and tourists. ‌ Others added that frustrations were caused for some users due to the lack of cash payment options in the area, with payment accessed through an app or phone-based systems. ‌ Discussions on the issue will now come at council scrutiny session on June 27, where members will hear of proposals to introduce new short-stay parking tariffs at four nearby off-street car parks from April 1, 2026. These will include Bay View, Ocean Way, Scarlet Avenue and Victoria Road car parks with proposed tariffs of £1 for one hour and £2 for two hours in order to "support short-stay visitors to the seafront allowing them to pay with cash using the existing pay and display machines." It was however noted that payments made at these car parks would not be transferable to the laybys, with the possibility of installing cash payment machines there not deemed as feasible due to the cost of installing them. Article continues below A council spokesperson said: "We've listened to the concerns raised since the introduction of charges and are proposing changes that aim to make parking at the seafront more accessible and easier to use. "Whether you're visiting for a quick walk or a full day out, we want to make parking as simple and flexible as possible—while helping to maintain one of our county borough's most important public spaces." The council says it will also ask for permission from the Welsh Government to install clearer signage along The Princess Margaret Way to improve information about payment options. ‌ However, speaking after the announcement of the proposals, which came ahead of a scheduled public meeting, Councillor Sean Pursey of Sandfields East said he felt they did nothing to address most of the issues raised. He said: "The local councillors for Sandfields have been raising their concerns with the charges since 2023. Despite this and several petitions with thousands of signatures, the proposals went ahead. "Many of the concerns raised in 2023 have come to bear since - the charges are having an impact on both the health and well-being of residents in Neath Port Talbot, and the businesses on the seafront - that impact is not worth the revenue that is being raised. ‌ "The councils proposed changes to the other car park tariffs do nothing to address most of these issues and won't be implemented until next year in any case. "It is disappointing that the council has come forward with these proposed changes before hearing the feedback in the public meeting from residents and businesses. "We hope that following the meeting the leader and cabinet member reflect on the genuine concerns that will be expressed and scrap the lay-by charges." Article continues below