Council tax debt collection rules to change in Wales - could England be next?

Households in Wales are to be given more time to deal with missed payments before enforcement action is taken.

At the moment, missing a single council tax payment can mean you become liable for your whole annual bill if you don’t make it up within seven days of a reminder. 

But the Welsh government believes this rule doesn’t reflect the more supportive approach councils already take today.

That’s why it’s introducing a new system that it believes will be fairer and prevent debt escalating quickly.

What’s changing in Wales?

From 1 April 2026:

• families will have 63 days to catch up on missed council tax payments before enforcement action begins
• clearer rules will be introduced around reminder and final notices
• councils will be expected to signpost households towards advice and support, particularly for those who are vulnerable

The Welsh government hopes this new system will be fairer while still allowing councils to act against those deliberately avoiding payment. 

And for many households, it could mean crucial extra time to get back on track.

Could England follow suit?

The UK government ran a consultation earlier this year looking at how council tax arrears are recovered in England.

Among the proposals are:

• giving households more time before they’re asked to pay their bill in full
• capping how much can be added to bills through liability orders (court demands for payment)

We’re still waiting to hear the government’s response to the consultation.

But it suggests England could possibly move in a similar direction to Wales in trying to make the system fairer for struggling households.

However, the UK government may have an opportunity to go a bit further.

While it’s good to see people being given more time to pay what they owe before enforcement action is taken, 62 days may not be long enough for some struggling households.

Many people miss instalments because of temporary hardship, income changes or simple administrative errors - and they should be given a chance to put things right.

So it’s really important that any reminder letters include details of what support they can get.

Help is available

If you’re struggling to keep up with your council tax, contact your council before you miss a payment.

Make sure you have an idea of how much you can afford to pay, so you’ll need to come up with a budget to work this out.

You might also be entitled to a council tax reduction if you’re on a low income.

And if you’ve already missed payments and don’t know how to get your finances back on track, it’s a good idea to get debt advice.

For information, check out our guide on what to do about council tax arrears.