Dealing with council tax arrears

What if I cannot pay my council tax?

1. Do a monthly budget

See if there are any ways to make savings to help you pay your council tax arrears. We can do this with you, or you can use our guide to making a budget.

2. Ask the council to agree to a payment arrangement

Make an offer based on what you can afford. You can show your council your budget to prove you are offering what you can afford.

3. Check if you can pay less each year

Your bill may be less if you:

• Are on benefits
• Live alone
• Are on a low income

Find out how council tax is worked out.

4. Let the council know if you are getting debt advice

The council may be more patient with you if they know you are getting help with your debt.

Can council tax arrears be written off?

Councils do have the power to do this. It is called 'discretionary relief'.

They may do this if:

• Your home cannot be lived in, due to fire or flood damage
• You do not have any money left after your usual living costs
• You have serious ill health, including mental health conditions

To apply for your council tax to be written off, you need to:

• Write to the council
• Ask for 'discretionary relief'
• Quote Section 13A Local Government Finance Act 1992
• Share your budget to prove you cannot afford to pay

Councils must consider all applications. They cannot dismiss them out of hand.

You can make a complaint if the council turns you down. This can be escalated to the Valuation Tribunal.

There are also some debt solutions that write off council tax, like bankruptcy and debt relief orders (DROs).

You may be able to add council tax arrears to an individual voluntary arrangement (IVA) proposal. This would write them off as part of your IVA. Your IVA application must be approved by the people you owe, but your local council may not agree to write off these debts.

What happens when I miss a council tax payment?

You are sent a reminder letter 14 days after missing payment.

If you pay within seven days of the reminder letter you can keep paying your council tax in instalments.

If you do not pay within seven days of the reminder letter:

• Your local authority can ask you to pay the whole council tax for the rest of the year
• You have another seven days to pay the whole amount
• You are sent a final notice to pay

If you do not pay within seven days of the final notice:

• You are at risk of being taken to court
• The council can issue a court summons for the full balance owed
• You have to pay additional court costs
• You need to pay the full amount by the court deadline to avoid going to court

The court process differs depending whether you live in England, Wales or Scotland.

Read about what happens if you do not pay your council tax.

Can bailiffs force entry for council tax?

A bailiff can only force entry to:

• Collect a criminal fine or taxes owed to HM Revenue & Customs
• Take goods if there was a controlled goods agreement in place, but you did not pay what you had agreed to pay

A bailiff cannot force entry to your home for council tax debt unless there is a controlled goods agreement in place.

Find out more about bailiff rights and powers.

What is a council tax liability order?

Local councils can ask for a liability order to be issued. This lets them:

• Involve court-appointed debt collectors
• Take further legal action

Liability orders are issued across the UK, with different rules for different legal systems.

Find out more about liability orders.

What if my council will not help me?

Raise a complaint with the ombudsman services if you are not treated fairly.

• In England – Local Government Ombudsman
• In Wales – Public Service Ombudsman for Wales
• In Scotland – Scottish Public Service Ombudsman

Help with council tax debt

Use our online debt advice tool to get help at a time that suits you.