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More than 11,000 council tax accounts in Caerphilly County Borough were in arrears in the last financial year, Caerphilly Observer can reveal. 

Caerphilly Observer submitted a Freedom of Information (FOI) request to Caerphilly County Borough Council to understand how many accounts were in arrears. 

Now, we can reveal that 11,293 accounts out of 80,233 were in arrears in the last financial year – that’s 14% of all accounts.

In monetary terms, £9,632,125.41 is owed to Caerphilly County Borough Council.

Caerphilly Observer asked why there’s such an increase in council tax accounts in arrears. A council spokesperson responded: “CCBC has an excellent track record of council tax recovery, however, council tax arrears have increased in recent years due to a number of factors including the financial impact of the Covid-19 pandemic and the ongoing cost-of-living crisis.

“This situation is not unique to CCBC, as all other Welsh local authorities are reporting an increase in arrears over the past three years.”

The amount owed in council tax has increased in the last few years, with total arrears owed rising from £6,904,531.22 in 2020/21 to £9,632,125.41 in 2022/23 – that’s a 39.5% increase. 

This comes after Caerphilly County Borough Council approved a council tax increase of 7.9% at a full council meeting in February 2023. 

When asked by Caerphilly Observer how the council can justify a 7.9% increase in council tax when many accounts are in arrears, a council spokesperson said: “For the 2023/24 financial year the council faces total cost pressures of £55.4m, and this is being funded through an increase in Welsh Government grant of £22.2m, approved savings of £11.8m, one-off use of reserves totalling £15.3m, with the balance of £6.1m being funded through the 7.9% increase in council tax.

“We appreciate that the increase in council tax is not welcome, but without this, the council would need to consider more unpalatable and unpopular cuts to services.”

Band D precept ‘remains the lowest in Wales’

A spokesperson for the council also added: “It’s worth noting that even with the 7.9% increase in council tax, our Band D council tax precept remains the lowest in Wales.”

Council tax accounts are banded from A to I in Caerphilly County Borough – with those in band A paying the least and band I the most. 

The bands differ between each community – for example, Band A in Aber Valley for 2023/24 is £1,131.64 whereas in Ynysddu it’s £1,118.36.

A property in band D in Bargoed would be charged £1,723.98, whereas in Risca East it would be £1,689.53.

Some areas differ in amounts due to places, like Aber Valley, having a community or town council which costs residents more.

While the band D precept is the “lowest in Wales”, according to information obtained by Caerphilly Observer through a Freedom of Information (FOI) request in March 2023, there are just 9,437 band D properties in the whole of the borough – out of 80,580. 

In fact, just 19,519 were in bands D to I – whereas 61,061 were in bands A to C.

‘Steep rise’ in people who need advice

According to Indebted, a report on council tax published by Citizens Advice, in 2021-22, more than 5,500 people sought help with council tax debt from local Citizens Advice across Wales.

Simon Ellington, chief executive of Citizens Advice Caerphilly and Blaenau Gwent, said the service had seen an increase in people struggling to pay council tax.

Mr Ellington said: “We have also seen an increase in clients’ council tax arrears over the past couple of years. The total arrears reported by our clients in 2021/22 was £376,000 and in 2022/23 was over £400,000.

“We have also seen a steep rise in the number of people coming to us for advice on council tax reductions, 340 in 2021/22 to 585 in 2022/23 – a 72% increase.

“We work closely with Caerphilly Council and their responses to our negotiating on behalf of our clients are generally positive.”

Caerphilly Observer also asked Caerphilly County Borough Council how people who were unable to pay were being supported. 

A spokesperson for the council said: “CCBC is leading the way in Wales with its cost-of-living support for local residents and we have introduced a wide range of support measures to help families who may be struggling.

“We encourage all residents to contact us as soon as possible if they are struggling to pay their council tax and actively promote council tax reduction take-up for those residents on low income. 

“We will also support residents to set up payment plans and residents experiencing financial difficulty can also access support and advice from the council’s Caerphilly Cares Team. Residents are also sign-posted to other external agencies such as Citizens Advice Bureau, National Debt Line and Step Change Debt Charity for free debt and budgeting advice.       

“In addition, the council has set up a £3m Cost of Living Hardship Fund to support a range of initiatives that are assisting our communities.”

This article was updated on August 7 to include additional information on why council tax varies in different areas.