Council Tax Arrears On the Rise After Support is Withdrawn

Council tax arrears remain one of the most common debt problems facing households across England and Wales. With the average Band D council tax bill reaching £2,280 for 2025/26, a 5% increase on the previous year, many families are finding it harder than ever to keep up with payments.

Since the localisation of council tax support in 2013, when the national Council Tax Benefit scheme was replaced by locally administered Council Tax Reduction schemes, the burden on low-income households has grown steadily. Councils received reduced funding to cover these schemes, and many chose to require even the poorest residents to pay at least a percentage of their council tax bill. The result has been a sustained rise in council tax arrears, with hundreds of thousands of liability orders issued by magistrates’ courts each year.

Research from charities including StepChange and Citizens Advice consistently highlights council tax as the single most common debt problem reported by people seeking help. For those who fall behind, the enforcement process can escalate quickly, from reminder notices to court summons, liability orders, and ultimately enforcement agent (bailiff) action. The fees added at each stage can turn a manageable shortfall into a much larger debt.

The Taking Control of Goods Regulations 2013 set out rules that enforcement agents must follow, including limits on fees and requirements around how they conduct visits. Despite these protections, many people are unaware of their rights when a bailiff arrives at their door. You do not have to let a bailiff into your home on their first visit for council tax debt, and they cannot force entry for this type of debt. Knowing where you stand can make a real difference to the outcome.

If you are struggling with council tax arrears, there are options available. Your council may offer hardship payments, extended payment plans, or additional council tax reduction. You may also qualify for a council tax exemption or discount you are not currently receiving. Getting advice early is always better than waiting for enforcement action to begin.

Council Tax Advisors can help you understand your rights, challenge unfair enforcement, and find a way forward with your council tax debt. Contact us today to speak with an experienced advisor who can assess your situation and explain your options.