A similar number are also in arrears for rent, owing an average of £2,072 per household, reports Olivia Opara and Miriam Balanescu

More than 7,000 households in Haringey are in council tax debt, official data has revealed. 

As of February 2023, 7,126 households are in arrears for council tax, with the sum of outstanding payments (also including yet-to-be-paid bills) totalling £53.3million. Haringey Council also disclosed that 6,899 households are in rent debt worth £14.3m, showing that on average a household with rent debt owes £2,072.

Out of a total 113,078 households, 6.3% are in council tax debt, compared to 6.1% in rent debt.

There remains £29.6m outstanding in council tax debt payments for the years 1993-2022, which the council has said it is seeking to recover through its ethical debt policy “or is already under arrangement”. 

These figures were disclosed by the council in response to a freedom of information request (FOI) made by Haringey Community Press in March 2023.

Another FOI from July 2019 found that there were 11,471 cases of council tax debt between April 2018 and March 2019, which the council referred to external enforcement agencies. This number has now plummeted by 4345 – a decrease of 37.8%.

However, in 2020, the Greater London Authority found that council tax debt had become the most common debt problem impacting low-income households in London. Meanwhile, the debt charity StepChange found in 2017 that Haringey had the highest proportion of their clients in arrears, with council tax at 44.3% compared with a London average of 34.9%. The council tax collection rate is expected to rise to 94.6% in Haringey this year.

Debt Justice is a community organisation that brings together people who have experienced debt to collectively organise and campaign on the debt issues that matter to them.

Jimi Stanford, community organiser at Debt Justice, told HCP that “many households in the borough on housing benefit are in rent arrears too and, for some, this may take generations to pay back.”

He added: “Nobody should fall into debt [in order] to put food on the table, heat their home or pay their rent. Using estimates from the Department for Work and Pensions and Trussell Trust, approximately 11,000 households in Haringey on Universal Credit are forced into debt to pay for food or other essential bills. 

“It doesn’t have to be this way. These issues have solutions that aren’t being explored yet. If we come together with our fellow residents and communities who are affected by these issues, we can highlight them and push for long lasting, fair change to the debt system in Haringey.”

Cllr Dana Carlin, cabinet member for housing services, private renters and planning, said: “These figures are a stark reminder of the impact of the cost-of-living crisis, which is pushing many of our residents to breaking point.  Spiralling energy and grocery bills mean many are either falling behind or constantly struggling to pay their rent and council tax.  The situation is compounded if residents move to Universal Credit.  The five weeks wait for this benefit and the reality that this is less generous than previous support is automatically resulting in more rent arrears.  

“We have made it a top priority to work together with our residents to support all those who are facing debt and financial hardship. Initiatives including our Here to Help scheme, automatic council tax support for people on Universal Credit, and supporting eligible residents to claim Pension Credit are some of the proactive measures we are providing to residents with money problems.  We have a financial helpline and a dedicated team who can help our community access support, including through our benefit maximising officers.”

Catherine West, MP for Hornsey and Wood Green, commented: “People in Hornsey and Wood Green are living through the biggest fall in living standards since records began with energy, food, rent and mortgage costs going through the roof. It’s sadly no surprise that debt is soaring and it’s shameful that in this cost-of-living crisis the government has chosen to spend £1billion on a tax cut for the richest 1% rather than put money back in the pockets of people who’re struggling.”

David Lammy, MP for Tottenham, also commented: “The extensive levels of debt and arrears in Tottenham make for deeply concerning reading. In the past few years, I have witnessed the devastating impact of the Covid-19 pandemic and the cost-of-living crisis on my constituents. Urgent action must be taken to ensure those who are already struggling with their finances are not further pushed into poverty.”

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