Sharp rise in households with council tax debt

Some of the most deprived parts of Derbyshire have seen a sharp rise in the number of households in council tax arrears.

Figures obtained by the BBC through a Freedom of Information request show the number of households in council tax arrears in Derby rose from 6,337 in 2023 to 10,262 this year, an increase of more than 60%.

Other areas of the county such as Bolsover saw increases of more than 100% within a similar time period.

Derby City Council said it had expanded support for those struggling to pay council tax. Other councils across the county also said they offered support.

The city council recently raised council tax by the maximum legal amount despite efforts to limit the rise from opposition councillors.

Derby sits just outside the top 50 most deprived local authorities out of 296 in England.

As well as Derby, other Derbyshire councils who the BBC approached for figures also highlighted increasing difficulties for households paying the bill.

Derbyshire Dales, Amber Valley and North East Derbyshire councils did not respond to the BBC's request at the time of publication.

The number of "first reminders" Erewash Borough Council sent to households who had failed to pay the bill rose by about 60% in roughly the same time period.

In Chesterfield, there was an almost 50% increase in the number of households in debt between the financial years 2023-24 and 2024-25.

However, the starkest rise was seen in Bolsover. There, the number of households in council tax debt rose from 1,291 in the 2023-24 financial year to 2,802 - an increase of about 117%.

Bolsover is one of the most deprived district councils in the East Midlands.

The authority said the figures were a "snapshot" of arrears at specific points in time and said the figure will have reduced as monies are repaid.

High Peak and South Derbyshire have seen the number of residents in arrears stay roughly level over the past few years. In High Peak, this is about 5,000 households, about 12% of the borough.

Almost all local authorities in Derbyshire have increased council tax by the maximum amount as part of their budget plans for the upcoming financial year.

Derbyshire County Council's leaders faced criticism for putting up the tax virtually by the maximum despite Reform UK's election literature pledging to cut taxes.

Erewash Borough Council chose to freeze council tax for the first time in several years, although it was the only Labour administration locally to do so.

The St James' Centre in Derby offers support for families struggling with bills and said the situation would "get worse".

"Council tax is a massive issue right now. Under the current system if you miss just one monthly payment within six weeks you have the bailiff at the door asking to pay for the full year and charges on top", the organisation said.

"Debt collection of council tax is very aggressive and has a big impact on people's mental health [and] constantly increases anxiety to even open letters from the council.

"People are scared to call council tax customer service."

The group has urged Derby City Council to put in place "reasonable payment plans which the person can afford".

The leader of Derby Conservatives Steve Hassall said the sharp increases in short periods of time "points to real and growing financial pressure on households".

"We argued strongly against pushing council tax up to the maximum 4.99% precisely because of the impact it would have on residents already struggling with rising costs," he said.

"I would expect to see a much stronger focus now on early intervention, debt support, and a more realistic approach to affordability in future decisions."

A spokesperson for Derby City Council said: "We are committed to supporting those who are struggling.

"We have expanded our Council Tax Support Scheme to help more lower-income households. Additionally, our Council Tax Hardship Scheme remains available for residents whose support may not cover their full bill.

"We urge anyone falling behind to engage with us early. Our automated systems are there to start a conversation, and our teams are ready to listen and help find a sustainable way forward."

Other councils in Derbyshire said that they had programmes in place to support those in difficulty and urged residents to contact them directly.

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