About Council Tax
Council Tax is a priority debt you must pay, as the consequences of falling behind can be worse than with other debts. If you are worried about paying it, it’s important to have a plan.
For further information on Council Tax arrears please see the National Debtline factsheet:
If you are looking to speak to a free debt adviser within the East Midlands please or you can use to locate the organisation closest to you.
What help is available?
Every council has a scheme to help you manage your payments so contact your local council as soon as possible. If you wait until you have missed payments, it might limit the help they can offer you.
- In England and Wales, find your local council at:
When you contact them, explain your situation and see if it’s possible to work out a new payment plan before you fall behind.
Here are some examples of support that might be offered:
- Bill reductions if you’re on benefits - if your income drops or you find yourself out of work you can apply for Council Tax reduction discounts. These might be up to 100% off your Council Tax if you are on certain benefits or a low income, but this depends on your local council. Everyone can apply, but not everyone is entitled. There are also exemptions for those with serious mental health conditions, but the eligibility might differ depending on the local authority that you live in.
Watch out for Council Tax scams
There have been reports of fraudsters contacting people to tell them that they are due a Council Tax reduction or refund. The scammer will say that they need an initial payment from you to release the refund.
Councils will never call or email you to ask for your bank details or ask you for money so they can send you a Council Tax overpayment.
Make sure you have claimed everything you are entitled to
If you have had an income shock, you could be entitled to government support. If you are struggling financially, it’s important that you claim any extra help you can.
Take a few minutes to check which benefits you can claim and how much you could get a month with the MoneyHelper .
What happens if my financial situation gets worse?
Even if your finances are on track now, your income could change. Perhaps you are self-employed and have a fluctuating income. This might mean an uncertain future.
You might need to review your finances so that you can cover your repayments. It’s useful to make a budget. If you have a little more going out than coming in, you may be able to rework how you are spending your money.
If you are looking to speak to a free debt adviser within the East Midlands please or you can use to locate the organisation closest to you.
Next steps if you have missed a payment
If you have already missed a Council Tax payment, this means you are in ‘arrears’.
Contact your council as soon as possible to let them know that your income has changed, and that you are struggling to cover your bills .
As well as coming to an arrangement on the money you owe them, you should also talk about future bills – especially if you think you might struggle to pay them.
Make a budget, work out what money you have left after it, and ask the council for help.
What happens if I don’t deal with my Council Tax debt?
Not paying your Council Tax and ignoring the letters you are sent can quickly turn into a serious problem.
First, you will get a reminder from the council about two weeks after you miss a payment.
If you pay within seven days, you don’t need to do anything else. The debt will be clear and you will be able to continue paying your Council Tax in instalments.
If you don’t pay within seven days of the reminder or if it’s the third time you have been late with Council Tax payments that year, the council will send you a ‘final notice’.
The final notice will tell you to pay all your Council Tax for the rest of the year within seven days.
If you don’t pay within seven days of the final notice your council will usually apply to the courts for permission to collect the debt from you. This is known as a ‘liability order’.
After this, your council can get your employer to pay your unpaid Council Tax directly from your wages.
They can also apply to take money from certain benefits, including
- Employment and Support Allowance
- Income Support
- Jobseeker’s Allowance
- Pension Credit
- Universal Credit.
If this isn’t possible, the council might send a bailiff to your home.
You will have to pay court costs and possibly bailiff fees as well as your debt, which can add hundreds of pounds to your bill.
If you are in England, it’s also still possible to get a prison sentence for getting behind with Council Tax.
For further information on Council Tax arrears please see the National Debtline factsheet:
When to get debt advice
If you have missed a payment, think you are going to miss a payment or are juggling other debts and feel you need debt advice, it’s important you pay them off in the right order as some are more urgent and some lenders have more power than others.
If you are looking to speak to a free debt adviser within the East Midlands please or you can use to locate the organisation closest to you.
