England's average Band D council tax bill will increase by £67 this Friday, reaching nearly £2,000 a year, according to official figures. The 3.5% rise comes despite Conservative ministers insisting most increases would be capped at 3%, bringing the average bill for a Band D home to £1,966.
The hike coincides with a cost-of-living crisis marked by soaring National Insurance, inflation, and energy bills, while income tax thresholds remain frozen for millions. This has led to the biggest income drop since records began in the 1950s. Families in Band D homes will see almost half of this year's £150 energy bill discount swallowed by the council tax rise.
The average Band A bill will rise to £1,310, Band B to £1,529, and Band C to £1,747. The £150 discount is a one-off payment and will not apply next year, when bills are likely to exceed £2,000 for Band D homes for the first time. Since the Tories took power in 2010, Band D bills have increased by over £500 a year.
Most councils responsible for social care were allowed to raise bills by 2.99% in 2022/23, but 63 out of 151 councils in England are increasing them by more than 3%, with Bolsover seeing a 5.33% rise. This is partly due to unused allowances from previous years and higher increases in some precepts. Despite these rises, councils face cuts to services as inflation approaches 9% this year.
Campaigners have called for an overhaul of the council tax system, which is based on 1991 property values. Andrew Dixon of Fairer Share described the rises as 'exorbitant, inequitable and an affront to millions'. Robert Palmer of Tax Justice UK warned the increase will worsen the cost-of-living scandal, hitting poorer households harder. A government spokesperson defended the £22 billion support package, including the £150 council tax rebate and £200 energy bill reduction.
