On the day that people are faced with higher Council Tax bills, Scotland’s political parties are being urged to commit to reforming Council Tax debt recovery, to ease the pressure on people who are struggling to pay.

Citizens Advice Scotland (CAS) says the current quick and harsh recovery process is causing unnecessary financial pressure on those who are willing but unable to pay.  

The charity is also pointing out that Scotland is the only part of the UK not committed to some form of wide-scale review and reform.  

CAS Financial Health spokesperson Myles Fitt said,  

“Council Tax debt is the most common debt issue people bring to the CAB service in Scotland and has been for over a decade. This will continue unless reform happens, particularly around debt recovery. 

“The local authority recovery process is too quick and too harsh on those who are unable to pay due to low income. Missing just one month’s payment very quickly becomes a demand to pay for the whole year’s bill. This then escalates to the legal recovery of the debt, including funds being taken directly from people’s bank accounts.  

“This can have a hugely damaging effect on those who are struggling to pay. Their already limited funds need to be urgently redirected from essential living costs such as food, heat and shelter or from paying off other debts, to avoid legal debt recovery of Council Tax arrears. Bank accounts can also be frozen for several days, leaving people unbanked and unable to access their money at all.     

“The debt recovery process needs to lose its severity to create calmer conditions for those struggling or falling behind. People need to have time and space to get help from advice agencies such as the CAB. This will help them get back on their feet and be in a better position to meet their Council Tax payments or arrears.

“The Government in Wales has already made reforms while England is poised to follow suit. The next Government at Holyrood must deliver these much-needed reforms in Scotland.” 

ENDS   

Notes

The Scottish CAB network gave advice on Council Tax to almost 23,000 people during 2025. More than 6,200 of these were advised specifically in relation to Council Tax arrears with almost half (3,000) needing support with a Council Tax debt, the average being £3,600.

Case studies

NB Names have been changed to protect people’s privacy.  

Sandra had been struggling with her living costs for a long time, forcing her to make very difficult decisions. She prioritised heat and food meaning she missed a Council Tax payment. Sandra soon received letters from her Local Authority and within less than three weeks, a Sheriff Officer arrived at her door with a demand for the whole year’s bill, not just the missed month. Sandra was horrified. How was she supposed to pay for a full year if she could not pay for the one month? This caused her significant stress and anxiety. 

Duncan was just about managing to pay his rent and Council Tax. One month, he was unable to pay his Council Tax, but due to the speed of the enforcement and recovery process, he had to prioritise paying the arrears on the Council Tax to avoid having to pay for the whole year’s bill. This urgency of having to pay the Council Tax debt meant he fell behind in his next month’s rent, simply moving him from one form of Local Authority debt to another. This left Duncan feeling completely overwhelmed.