Lowell’s Financial Vulnerability Index found that close to half of households had no emergency savings.
The CSJ’s findings will form part of Money Mindsets, an upcoming report produced with Lowell and Money Wellness.
The report will call for councils to use digital messages alongside traditional letters. Its authors believe contacting people through platforms they regularly use could encourage them to respond sooner and seek trusted support.
Ben Gregg, Head of Welfare at the Centre for Social Justice, said: “Council tax arrears are dragging struggling households deeper into problem debt. Yet the way this debt is collected is firmly within the Government’s control.”
Mr Gregg added: “Clearer communications, earlier support and a trusted route to free advice are everyday fixes that could make a real difference. Ministers should build them into the council tax reforms already underway.”
John Pears, CEO of Lowell, said: “Bills keep rising, and more and more people cannot afford it. Instead, they are left in serious debt at the mercy of a system that just does not work.”