Vulnerable households will get more time to pay outstanding council tax bill

People who have fallen behind with their council tax are to be give more time to settle outstanding bills.

Under the current system, households who miss one monthly payment have to pay everything they owe in a single payment two weeks later.

But from next year, households will be given 63 days - about two months - to settle the bill.

Councils will also be required to work with people who are struggling on a sustainable repayment plan.

What else is changing?

Billing for council tax will change to 12-month payments by default, rather than the current 10 months.

This will help ease financial pressure on households by letting them spread payments evenly throughout the year.

Meanwhile, the amount councils can charge when seeking a liability order will be capped at £100.

What does this mean for you?

The government says proportionate action will continue to be taken against anyone who avoids paying council tax.

However, it stressed that these reforms will make sure more help and support is available to people in genuine hardship.

Almost half (45%) of the people we help who have priority debts are behind on their council tax.

So it’s clear that many of the people who are struggling are in real difficulty.

There’s a clear difference between those who can’t pay and those who won’t pay - and councils need to recognise this distinction.

For people who are unable to pay, taking enforcement action quickly can be heavy-handed and, ultimately, counterproductive, as it goes no way towards actually solving their financial problems.

And it seems the government accepts this is the case.

“Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month’s council tax bill was missed,” said local government secretary Steve Reed.

“We will stop this and make the system fairer by supporting families who fall behind.”

Local government minister Alison McGovern added that the “outdated and confusing” way of running council tax has “stopped some of the most vulnerable people from accessing the support they need”.

“Our changes will cut through the complexity and make sure that council tax is fit for the 21st century,” she said.

What support can you get if you’re struggling to pay council tax?

If you're finding it hard to keep up with council tax payments, you may be eligible for discounts, exemptions or other support.

Council tax discounts and exemptions

Certain people are not counted when calculating your bill, which can help lower the amount you owe.

This can include:

• under 18s
• people on certain apprenticeships
• full-time students
• severely mentally impaired individuals
• live-in carers for someone not related to you
• diplomats

If everyone in your household is disregarded, you could qualify for a 50% reduction on your bill.

If you live alone or all others are disregarded, you might get a 25% discount.

Discounts for students

Full-time students in all-student households are usually exempt from council tax. If you live with others who aren’t students, you’ll be disregarded.

To qualify:

• your course must last at least 1 year
• you must study for 21+ hours per week

Discounts if you’re disabled

If your home is larger than needed due to your condition, you might qualify for the disabled band reduction scheme.

This could lower your council tax bill to the next-lowest band or provide a 17% discount if you’re already in the lowest band.

Fallen behind on paying council tax?

Council tax is a priority debt, so there’s serious consequences if you don’t pay and councils can take legal action, leading to extra fees and bailiff visits.

If you’re behind on payments, it’s important to act fast:

• contact your local council right away to discuss your situation
• look into any discounts or exemptions you may qualify for
• think about setting up a payment plan to manage your debt over time
• seek debt advice if you’re struggling with money

For more information on dealing with bailiffs for council tax arrears, read our guide.