Table of contents

If you’ve ever fallen behind or felt overwhelmed by your council tax bill, you’re not alone. Many households across the UK are finding it hard to manage, especially as the cost of living continues to stretch budgets.

The good news is that change could be on the horizon. New government proposals may reshape how council tax debts are handled, particularly around enforcement and how quickly things escalate.

What’s changing with council tax?

Earlier this year, the government announced plans to reform council tax collection following a long policy review. The goal is to make it fairer, more transparent and easier to manage.

The proposed changes include:

  • More time and clearer communication before enforcement action
  • Affordable repayment options explored before bailiffs get involved
  • Extra support for people dealing with chronic illness, mental health issues or financial hardship

It’s a welcome step forward. But for now, councils still have the legal power to demand a year’s payment upfront and recover unpaid tax through the courts. That can lead to stress, extra fees and, in some cases, bailiff visits.

What’s changing to council tax enforcement?

Alongside council tax reform, there’s also a wider consultation on how enforcement agencies are regulated in England and Wales. This review is long overdue, as enforcement processes haven’t changed significantly since 1993.[1]

The MoJ (Ministry of Justice) is currently running a consultation, which ends on the 12th of September. This could lead to:

  • Tighter rules on bailiff action and behaviour
  • Clearer complaints processes
  • Stronger safeguards for people classed as vulnerable

These are important conversations that many in the debt advice sector have long called for.

In fact, many councils and organisations are hard at work behind the scenes crafting responses to the consultation, speaking out against the current system.

But until reforms are confirmed, the current rules still apply. If you’re falling behind, acting early gives you the best chance of avoiding enforcement.

What do I do if I’m struggling with council tax arrears?

If you’ve missed a payment or you’re already in arrears, there are steps you can take. Council tax is classed as a priority debt, meaning it can be enforced more quickly than other types of debt.

To help make this clearer, we’ve created a new factsheet: “What to do if you’re struggling to pay your council tax or you’re already in arrears.”

View the factsheet here

It covers:

  • What to do if you’re struggling to pay
  • What happens if you miss a payment
  • What legal action councils can take and what that might mean
  • How to deal with bailiffs and protect your rights

Why is council tax a priority debt?

Council tax is considered a priority debt. This means it usually needs to be paid off in preference to debts like credit cards, overdrafts or phone bills. Local authorities can act fast if payments are missed.

If you fall behind:

  • You may only get two reminders before legal action starts
  • Councils can apply for a court order known as a ‘Liability Order[2]
  • Once granted, extra costs can be added to your debt
  • Councils may request deductions from your wages
  • Bailiffs might be instructed to recover the amount owed

Don’t stop paying, as this can make things worse. Usually, you should be able to contact your council to explain your situation and ask if they will let you pay in smaller amounts.

If you’re anxious or unsure, you’re not alone

We speak to people every day who feel anxious or unsure about council tax arrears. If that sounds familiar, you’re not alone. Reaching out sooner gives you more time and more options.

Whether you speak to your local council or contact us for debt advice, support is here when you need it.

  • Call us free on 0800 316 1833
  • Start a live chat at https://www.payplan.com/get-started

[1] https://www.gov.uk/government/consultations/modernising-and-improving-the-administration-of-council-tax/modernising-and-improving-the-administration-of-council-tax#collection-and-enforcement-of-council-tax

[2] https://www.gov.uk/council-tax-arrears#:~:text=Your%20council%20can%20ask%20a,paying%20if%20you%20want%20to.