BRITAIN’S poorest households are struggling under an increasing mountain of debt as they are hammered by soaring bills and falling income — with almost 30,000 people turning to charities for help with council tax arrears this year.

Overall personal debt in Britain stood at a staggering £1,439 billion at the end of February, according to the Money Charity.

Citizens Advice Bureau warned that more and more households were falling behind with “rocketing” council tax payments following the government’s abolition of council tax benefits last year. It is now the most common type of debt for desperate people approaching the bureau for help, overtaking credit card and personal loan debt.

The charity attributed the problem to the government’s axing of council tax benefit and replacing it with council tax support schemes, through which assistance can vary from one council to the next.

“Council tax arrears are a serious problem for in-work households” the charity said. 

Between January and March 2014, 42 per cent of those approaching Citizens Advice for help with council tax arrears were in employment, it said.

Of those asking for advice from Cab for help with council tax issues, one in six (16 per cent) also had a credit or store card problem, one in five (21 per cent) had a personal loan problem, a similar proportion (18 per cent) had a fuel debt issue and one in 20 (5 per cent) had a mortgage arrears problems.

Citizens Advice chief executive Gillian Guy said: “For some households council tax bills can be the tipping point that plunges them into debt. Last year over 90,000 people came to Citizens Advice looking for help with council tax arrears as they struggle in the face of low incomes, rising prices and reduced financial support.”

Homeowners are also suffering, with increasing numbers falling in to arrears with mortgage payments, the Money Charity warned.

Economist Michael Burke of the Socialist Economic Bulletin said: “The government’s claimed focus on reducing deficits and debt is entirely fake.

“The effect of its policies has been to shift the burden of government debt onto households. Household debt is now back over £1,400 billion, back at its high before the crash.

“Unsecured lending such as credit card debt, which is usually at high interest rates, and sometimes astronomical rates, is also back at record highs.

“People are being encouraged to take on debt, with false talk of recovery, and many people are being forced to increase their debt just to pay basic items like food, rent or utility bills.”