People in Wales owe £263m in overdue council tax

The amount of overdue council tax owed by families in Wales has increased by 139% compared to pre-pandemic levels, according to Welsh government figures. Overdue payments - which are called arrears - have also increased sharply every year since 2022 when the cost of living crisis began biting, with £263m in total outstanding. Gwynedd has the highest level of overdue council tax - an average of £373 per liable household, while Neath Port Talbot has the lowest at £67. Missing a monthly council tax payment can have serious consequences because under the current rules you become liable to pay the entire year's bill after just two weeks. Gwynedd council said it had the lowest council tax collection rate in Wales in 2024-25 at 93% and that a review was "ongoing" and action was being taken to "strengthen our recovery". The transferring of someself-catering holiday lets from cheaper business rates to council taxmay also have affected the figures. Some shoppers in Bangor said many people were struggling to afford council tax bills. Rosemary from Pentir has moved in with her daughter, and admitted: "I wouldn't be able to pay it out of my little pension any more." Christine Lewis Roberts, from Anglesey, said: "I think it's too much really, but then everything is. "Bills are going up and that's it." But Gareth Parry said councils had to find the money to keep services running, adding: "Everybody says it's a bit high, but that's the cost of things these days -councils have got to function." Eleanor Price from Gwynedd said the two week rule was "not enough time", adding: "If people are in difficulties, they are going to continue to be in difficulties." Council tax arrearsacross Wales stood at £103m for the 12 months to the end of March, plus another £160m in overdue payments from previous years, bringing the total outstanding amount to £263m. The tax is the main source of locally-raised income for local authorities, and it is charged on domestic property with the amount charged depending on the value of the property, which was last assessed in 2003. Welsh government plans for a revaluation, which could see lower bills for some and higher ones for others, weredelayed until 2028. Council tax is often criticised for being "regressive", or placing a disproportionate burden on poorer households. There is a council tax reduction scheme for poorer people, which supported 258,685 households in 2023-24. Some properties are exempt, for example those occupied solely by students, while others - such as second homes - are sometimes charged a premium. Other households qualify for a discount, such as the single person discount which reduces the bill by a quarter if a property is occupied by someone living alone. The Welsh government is currently running aconsultationon proposals to soften the rules around non-payment. They include extending the period when a missed monthly payment triggers a liability to pay the entire year's bill from two weeks to two months, and requiring councils to communicate more comprehensively with residents over payment reminders and final notices. Finance Minister Mark Drakeford said the current rules are "too aggressive" and the government wanted to "tackle what is a fundamentally unfair tax". He said: "We want to change the rule book to give councils more opportunity to get alongside people who find themselves in trouble to prevent that from getting worse." The Welsh government is also funding a small pilot scheme covering Merthyr Tydfil, Blaenau Gwent and Newport, which offers interest free loans to eligible residents so that they can clear their council tax debt. But Plaid Cymru said in a statement: "Whilst interest free loans are better than prosecution, the truth is that it is ultimately only a sticking plaster solution within a system that disproportionately impacts people living on the breadline. "Without fundamental reform of council tax - something which Plaid Cymru has long argued for and that was due to happen until Labour pulled the plug on reform - this unfairness will persist." Debt charities warn that council tax is a "priority debt", so do not ignore it. The Welsh Conservatives criticised Labour's "failure to hold back rapidly rising council taxes that working people are struggling to pay". "The Welsh Conservatives will keep council tax low by introducing local referendums for councils wishing to raise the tax by over 5 percent, so that residents have the final say," a spokesperson said. The Welsh Liberal Democrats said: "Council tax is one of the most outdated and unfair taxes in the UK today. "Too many families have gone into debt because of the Welsh government's delays in changing the system." Reform UK said: "The rising council tax arrears aren't surprising when you consider how councils waste money and resist meaningful reform. "It's time to slash council tax, cut the waste, and put control back into the hands of the people who earn the money."