Welsh Government publishes evaluation of removing imprisonment sanction for Council Tax non-payment in Wales

The Welsh Government published an evaluation on 8 March 2023 of what happened to Council Tax collection in Wales after the sanction of imprisonment for non-payment was removed. The research was carried out in 2022 and used desk-based research, quantitative statistical analysis and interviews with key stakeholders¹.

The evaluation compared Welsh council collection rates from 2017 to 2018 with those from 2021 to 2022 against control groups. It found that average Council Tax collection rates in Wales were higher than in England, Scotland, and when compared to similar councils in England. Welsh councils were the only group to implement the non-sanction of imprisonment within the comparison timeframe¹.

The report records that awareness of the change was high within councils, but that enforcement activity shifted in different ways. The main changes stated by councils were an increase in the use of charging orders, more referrals back to debt collectors and an increase in write-off of Council Tax debt¹. It also found that removing the sanction led to challenges for councils in engaging with particular groups of non-payers¹.

Citizens Advice Wales told the evaluation that the removal had a positive impact because it provided the space for debtors to pay at a rate they can afford. It suggested that before the sanction was removed there was evidence that some debtors were so concerned about imprisonment that they repaid debt at a level that caused harm to themselves¹. The charity was also concerned that some Welsh councils had still not updated their communications in light of the removal¹.

Why it matters for households

The evaluation covers people in Wales who fall behind on Council tax in Wales and the councils that collect it. Its central finding is about collection rates rather than individual bills: over the period studied, Welsh councils recovered a higher average share of the Council Tax due than councils in England and Scotland¹.

For households in arrears, the report describes a changed enforcement landscape. With imprisonment removed as a sanction, councils reported more use of charging orders, more debts referred back to debt collectors and more debt written off¹. Charging orders are a court route that can lead to a charge over a property, so their increased use is a change in what a household in arrears may face. The report does not give figures for how many charging orders were made, how much debt was written off, or how referrals to debt collectors changed in number; those details have not been reported¹.

The report also points to communication. Citizens Advice Wales was concerned that some councils had not updated their communications after the change, which matters to anyone reading a council letter or notice that still refers to imprisonment¹. The evaluation does not name which councils, and no list has been reported¹.

The research concerns the position in Wales. Rules on Council tax arrears and the routes available to councils differ across the UK, and the report notes that Welsh councils were the only group in its comparison to have removed the sanction within the timeframe studied¹. Background on the Welsh framework is set out in Can You Go to Prison for Not Paying Council Tax in Wales? and The Council Tax Protocol for Wales Explained.

What happens next

The evaluation was released on 8 March 2023 and last updated the same day¹. It forms part of the Welsh Government series Understanding the impact of Council Tax Interventions in Wales, whose latest release on that date covered an exemption for care leavers¹. No further steps, reviews or changes to council practice are set out in the published material¹.