The latest figures released by the Ministry of Housing, Communities and Local Government reveal that council tax arrears in Britain have reached a staggering £8.3 billion. With £6.6bn owed in England alone, and sharp increases reported in Scotland (£1.5bn) and Wales (£160m), it’s clear we are facing a growing affordability crisis that cannot be ignored.
At allpay Limited, we work closely with local authorities and housing associations across the UK, so we know firsthand that most people in arrears are not deliberately avoiding payments. As the charity Debt Justice rightly points out, “the vast majority of people aren’t avoiding council tax, they simply can’t afford it.”
Is this a wake-up call for change?
Council tax arrears have surged by 79% over the last five years, a trajectory that reflects wider economic hardship, rising living costs, and ongoing pressure on household budgets. In response, the Government has now launched a consultation on how council tax debt is collected, a timely move that opens the door for reform.
But change must go beyond policy. It needs to be rooted in practical, compassionate solutions that help households manage payments in ways that reflect their circumstances, without resorting to enforcement measures like bailiffs that can push vulnerable people further into crisis.
How technology can help
This is where payment solutions like those provided by allpay can make a tangible difference. Councils, housing associations and registered landlords have a real opportunity to modernise their approach to collections through:
- Flexible payment options: Empowering residents to choose when and how they pay, with solutions like Direct Debits and recurring card payments tailored to individual incomes and preferences.
- Digital reminders & engagement: Using SMS, email, or app notifications to gently nudge people about upcoming payments, reducing missed instalments without increasing pressure.
- 24/7 self-service: Providing multiple channels such as online, in-person or over the phone, to let people pay on their terms, when it suits them best.
These kinds of tools not only increase collection rates, but they also build trust and transparency between Councils and communities.
At allpay, we believe in a debt recovery model based on dignity, flexibility, and shared responsibility. We stand ready to work with local authorities to deliver ethical, tech-enabled collection strategies that reduce arrears without resorting to punitive action.
As the Government’s consultation moves forward, now is the time to ask: how can we do things differently, and better?
If you’re a local authority, housing provider or public sector leader looking for smarter, fairer ways to support residents in financial difficulty, we’d love to talk.
Let’s reshape collections into a process that works for everyone.
