4 ways paying council tax could change

Council tax can be one of the biggest household expenses, with the average band D bill in England now topping more than £200 a month. But could help be on the way for those struggling to pay? 

The government has proposed changes to how council tax is billed and collected in England, including making 12 monthly payments the default option instead of 10. It's hoped that this will ease pressure on household budgets, and a consultation has been launched to gather public views. 

Here, we break down the main proposals and explain what support is available if you're struggling to pay your council tax. 

4 ways council tax might change

Members of the public are being invited to share their views on government proposals to improve the way council tax is billed and collected in England. Responses to the consultation, which launched on 20 June and runs for 12 weeks, will be used to inform potential policy changes in the future. 

The suggested changes only apply to England, and there are currently no plans for a shake-up in Wales or Scotland. Both countries have devolved powers to set their own council tax rules. Northern Ireland uses a separate system called ‘domestic rates’, based on a property's capital value.

Here, we outline four of the biggest changes the government is proposing:

1. Payment schedules

For most households in England, council tax is paid in 10 instalments spread over the course of a year from April to January. The consultation outlines plans to increase the number of instalments to 12 by default.

Spreading the cost over a full year could make it easier to manage monthly budgets. But how much of a difference would it really make?

The average band D council tax bill in 2025-26 is £2,171. That works out to be £217 a month if paying in 10 instalments. If you paid in 12 instalments instead, your monthly bill would be £181.

Under the proposals, households could still opt to pay in 10 instalments if they prefer, as long as they request this by 15 April of the relevant year. 

Even with these changes, council tax remains a major household expense. For context, a monthly council tax bill of £181 is higher than the average energy bill. 

• Find out more: paying council tax.

2. Enforcement rules

The government is also looking at ways to change enforcement of payments, including 'a more appropriate and proportionate timeframe' before councils can demand a full bill from households.

Council tax is considered a 'priority payment', as failing to pay on time can have serious consequences. Councils can engage with taxpayers who are struggling at any time to help set up a payment plan, but this is what the law currently allows:

• Miss one instalment and you'll receive a reminder to pay it within seven days. If you don't, then you'll be asked to pay the full year's bill instead. 
• You'll only get two reminders in a financial year before receiving a 'final notice'.
• If the bill is still unpaid, the council may request a 'liability order' from the court to confirm the debt and take action to recover it. That can include sending bailiffs to seize your belongings and sell them. 
• You could face time in prison if your council takes further legal action. 

The consultation document, however, admits that taxpayers who missed a monthly payment are 'highly unlikely' to be in a position to then pay the entire outstanding amount in a single payment. 

The document goes on to say these types of 'aggressive recovery action' have sometimes been applied 'too quickly and too intensely'. The government is therefore demanding fairer treatment and better support for households who are struggling to pay. 

They're also proposing to increase the time before councils can take someone to court to settle their debts. 

• Find out more: free debt advice contacts.

3. Challenging your band

One way households in England and Wales can reduce their council tax bill is to ask the Valuation Office Agency (VOA) for a review of their band. However, from April 2026, the VOA will be scrapped and its duties taken over by HM Revenue and Customs. 

If you think there was a mistake in the original valuation of your property, you'll need to do your homework first. This includes checking what bands neighbouring properties are in and working out what your property would have been worth in 1991. 

You can then submit your case directly to the VOA, explaining why you think your property is in the wrong band. 

However, the government states in its consultation that there is currently no straightforward way for people to check and challenge their council tax band. It's asking the public to share their experiences of challenging a band and suggest ways to make the process easier. 

• Find out more: council tax bands explained.

4. Bill transparency 

The government is also asking for views on whether council tax bills are clear enough and if there's room for improvement. 

It says that many of the details included on bills are too technical, and clearer information would help people understand exactly what they're paying for. This, in turn, would ensure local authorities are fully accountable for their decisions. 

The consultation also highlights the need for people to know where to turn for help if they’re struggling to pay their bill.

• Find out more: council tax calculator.

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What to do if you're struggling to afford council tax

Naturally, you'll want to avoid this, so there are a few things you can do if you're struggling. 

• Contact your local authority Ask about reducing or rescheduling payments. You'll probably need to provide evidence that your savings, earnings or other assets can't cover what you owe.
• Apply for hardship relief This can help if you're experiencing 'exceptional hardship' beyond your control. 
• Apply for council tax reduction The way this works depends on where you live, but you could be eligible if you're on a low income or receive benefits. 

Our guide to paying council tax has more details on what to do if you don't think you can pay your council tax bill. It's also worth checking the English,  Scottish and Welsh government websites to see if any other support might be available.

Ways to reduce your council tax bill

It’s likely that council tax rates will go up in 2026-27, but there are some instances where you may be able to reduce your bill:

• Apply for a discount Depending on your circumstances, you may qualify for a council tax discount of 25%. You can get this discount if you live alone or with others who are 'disregarded' for council tax purposes, such as full-time students. 
• Empty property rule Other reductions may be available for empty properties, as well as second homes and holiday homes. These discounts aren't applied automatically, so if you think your property fits the bill, you’ll need to write to the council and make your case. 
• Review your council tax band This is an option if you think the original valuation of your home might have been wrong, or changes made to the property's use or size since its valuation have altered the band it should sit in. You'll need to contact the VOA if in England or Wales, and the Scottish Assessors Association if in Scotland. Just bear in mind that it's also possible to be reclassified into a higher band, which would increase your bills.

Find out more: how to reduce your council tax bill.