People are still getting threatened with prison for council tax debt. This has got to change

The stigma attached to debt is still alive and kicking, despite the fact that it’s deeply counter-productive. We’re committed to breaking it down and it forms a core part of our five year strategy. One concrete action we’ve identified that would make a big difference is for local authorities to change their approach to council tax debt collection. 

Some councils still create an impression that people may end up in prison for council tax non-payment – a measure that is rarely used but can create undue fear for residents struggling with their finances. At StepChange we’re calling on central government to remove this outdated sanction from the statute book once and for all. 

While Scotland and Wales removed the sanction of imprisonment for non-payment of council tax years ago, in England it remains a notional possibility. It is only for “wilful non-payment” or “culpable neglect”, not for those situations when people cannot afford to pay. In practice, it almost never happens – with just four cases of imprisonment since 2020.

Read more:

• Should we have to pay more council tax from April?
• Council tax hikes won’t improve services or pay workers better. But I have an idea
• Half of UK adults have faced problem debt. It can happen to anyone – but help is out there

We recently made a Freedom of Information request to all local authorities, so that we could compare the kinds of communications they were sending to people in council tax arrears. What we found was alarming – as one in twenty councils make a reference to committal to prison for council tax non-payment in the very first communication with someone who has fallen into arrears.

What’s more, we found that there were over 1,500 cases where councils had instigated prison proceedings for non-payment, despite the miniscule chance of someone actually being imprisoned – let alone the cost to the taxpayer in building a case and ultimately imprisoning for 90 days, all of which would almost certainly dwarf the size of any debt.

While we also found many examples of good practice from councils, the overwhelming conclusion from this research is – and this is the story for much of council tax policy – it remains a postcode lottery. The messaging you receive at different points of contact once you miss a council tax payment depends entirely on the individual approach taken by your local authority.

Our 30 years of experience supporting people in debt shows us that if you’re already frightened by the fact that you haven’t been able to keep up your payments, you are more likely to get in touch if you believe that your local authority genuinely wants to help. On the other hand, if the main message you receive is that court action and ultimately prison may be the trajectory ahead, you’re more likely to disengage, particularly if you can’t see a way of your financial situation improving. 

We think all local authorities should look at their communications and frame them on the basis of good practice using behavioural insight, and empathy for those of their residents who are struggling financially. It seems extraordinary, after the difficult experiences that people have faced in recent years with the pandemic and then the cost of living crisis, that such tough messaging has persisted in some cases. That’s why we want to see central government step in to introduce a set of binding national standards for council tax debt collection, which would steer council communications in a more compassionate direction.

Council tax reform is on the horizon, and we are hopeful of positive change. In the meantime, those local authorities who are making the most use of bailiffs, and sending heavy-handed and intimidating messages to people who are largely in the “can’t pay” rather than the “won’t pay” category, need to make changes. This is all part of how we move on from outdated views about debt and its stigma.

Vikki Brownridge is the chief executive of StepChange Debt Charity.

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. 

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