According to Advice NI, households across Northern Ireland are facing a growing debt burden as domestic rates bills for the 2026/27 period become due for payment. This year, there has been a 5 per cent increase in the regional rate, and all eleven councils have upped their district rates with increases ranging from 1.96 per cent to 4.5 per cent.

Advice NI says domestic rates bills remain a huge source of financial pressure with the charity seeing a continued increase in the amount its service users owe to Councils. Its debt advice service dealt with rates debts of £705,558 in 2024/25, rising to £1,066,170 in 2025/26, marking the first time the organisation dealt with rates debt exceeding £1 million.

Rising household costs, persistent inflationary pressures, and stagnant incomes are leaving many households increasingly vulnerable to arrears. Sinead Campbell, Head of Money, Debt and Quality at Advice NI, highlighted that given the current economic climate this amount is likely to rise further over the coming year.

She explained, “Our research tells us that most people wait over two years before seeking help for debt, and that more people are having difficulty balancing the cost of running their home alongside other essential outgoings. Whilst the amount our clients owed to Councils last year was over £1 million, we expect this figure to grow substantially as the sharp rise in the cost of living continues to be deeply felt.

“We want people to understand that rates bills should be treated as a priority debt. Falling behind on this payment can lead to serious financial and legal consequences such as a court order for money to be taken directly from your wages or benefits, or in some cases insolvency proceedings that may place someone’s home at risk. It’s important that anyone struggling to make their payments reaches out to us as soon as possible. We help people understand the extent of the issue, check if they are entitled to a Rates Rebate and liaise with Land and Property Services on their behalf.”

Whilst rates remain an ongoing source of financial stress for many, Advice NI highlights that households are also facing financial pressure in other areas, with the average debt a client faces now around £12,145.

Fiona Magee, Interim Chief Executive said, “Households are being squeezed in every direction. It is no surprise therefore that rates debt is also a growing issue. In 2025, we supported over 3,500 people collectively trying to navigate almost £42.8 million of debt, highlighting the depth of Northern Ireland’s debt burden. Not only are more people in debt, but more people are likely to be at risk of debt too. We must remember that the impact of financial stress extends far beyond numbers on a page, it affects people’s mental wellbeing, their relationships, and their overall quality of life. Reaching out for support can be daunting, but we exist to alleviate the burden as much as we can, so we’d urge anyone in need of our support to get in touch.”

Funded by the Department for Communities, Advice NI has supported over 30,000 clients with £303 million in debt since 2019. It offers a dedicated debt service in all eleven council areas throughout Northern Ireland with experts providing free, impartial, and confidential advice.