Concerned About Council Tax Funding Cuts? What It Means for You

Updated for 2026

Council tax support funding has been under pressure for over a decade, and 2026 is no different. Since the government replaced the national Council Tax Benefit scheme with localised Council Tax Reduction (CTR) schemes in 2013, funding for low income households has been steadily squeezed. Research from the Local Government Association shows that total funding for council tax support has fallen by well over £1 billion since the change was introduced.

For many councils in England, this has meant passing the shortfall onto residents. Some local authorities now require even the lowest income households to pay at least a portion of their council tax bill, where previously they would have been exempt entirely. According to analysis by the Joseph Rowntree Foundation and the Institute for Fiscal Studies, millions of low income families are paying more council tax in real terms than they were a decade ago.

In 2025/26, local councils across England face further budget pressures. Rising demand for adult social care and children’s services, combined with years of reduced central government grants, means many authorities are raising council tax by the maximum permitted amount. For the 2025/26 financial year, most councils in England were allowed to raise council tax by up to 5% without a local referendum, including a 2% adult social care precept.

These increases hit hardest for people already struggling with the cost of living. Energy bills, food prices, and rent have all risen sharply in recent years, and council tax is one more bill that can feel impossible to keep up with.

What help is available?

If you are struggling to pay your council tax, there are several options worth exploring:

• Apply for your local Council Tax Reduction scheme. Each council sets its own rules, so check what you may be entitled to.
• Contact your council to discuss a payment plan. Most local authorities would rather agree an affordable arrangement than chase arrears through enforcement action.
• Check whether you qualify for any council tax exemptions or discounts, such as the single person discount, student exemption, or disability reduction.
• If bailiffs have been instructed, you still have rights. They must follow strict rules about what they can and cannot do.

At Council Tax Advisors, we understand that falling behind on council tax can feel overwhelming. Our experienced advisors can help you understand your options, speak to your council on your behalf, and put a plan in place to deal with arrears before things escalate.

Even with reduced funding and rising bills, help is still available. The important thing is not to ignore the problem. Get in touch with our team today for free, confidential advice on your council tax situation.