The Money Advice Trust, which runs National Debtline and Business Debtline, said people with disabilities or long-term health conditions are three times more likely to be in council tax arrears.

It is calling for more help for people struggling to pay their bills in the wake of the Covid-19 pandemic.

Council tax arrears in England have reached record levels, with households owing more than £4.4bn, according to government figures.

But council tax arrears were already increasing at worrying levels before the pandemic, The Money Advice Trust said.

Between 2013, when the Government introduced a new localised system with lower funding for Council Tax Support, and 2020, council tax arrears in England grew by over £1.2bn, or 51 per cent.

In comparison, in Wales – where full funding was maintained – arrears grew by only 28 per cent, or £24.2m.

In the decade between 2009 and 2019, the proportion of callers to National Debtline with council tax arrears doubled, from 15 per cent to 29 per cent.

The charity is calling for urgent reform to current council tax collection rules and temporary measures providing support for those unable to pay due to the Covid pandemic to be made permanent.

Joanna Elson, chief executive of the Money Advice Trust, said: “With 7 million worried about affording their council tax bills in the next year and council tax arrears reaching crisis point, urgent action is required to help people struggling to pay.

“The current system of council tax collection and support isn’t working for anyone. Without the permanent funding needed to provide 100% council tax support for those who need it, local authorities are taking the costly route of attempting to collect partial amounts from people who simply cannot afford to pay.

“This not only leaves councils with limited to no returns on the tax they need to fund vital local services, but risks a swift escalation of debt problems for households that are already struggling.”

The charity’s recommendations include:

• Building on the actions the Government took during the pandemic, by continuing increased funding for councils to provide 100% Council Tax Support schemes to eligible households.
• Reforming outdated council tax collection rules, to prevent the rapid escalation of debt and ensure people in debt are treated fairly.
• Local authorities exempting residents who receive Council Tax Support from bailiff action, in recognition of the fact they have already been identified as vulnerable using locally-set criteria.