Desk with council tax bills and calculator

Council Tax Arrears: What You Need to Know in 2026

Falling behind on council tax is more common than most people realise. With bills rising again in 2026 and household budgets under pressure from all directions, thousands of people across England and Wales are slipping into arrears. If you are one of them, here is what you need to know and what you can do about it.

Council Tax Bills Are Rising Again

From April 2026, council tax bills have increased across nearly every local authority in England and Wales, with most areas implementing the maximum permitted rise. The average Band D household is now paying over £2,280 per year.

These increases come on top of rising broadband, mobile, water and energy costs. For many families, council tax is just one of several bills competing for a shrinking pot of money.

What Happens When You Fall Behind

Council tax is a priority debt. That means your council can take enforcement action more quickly than most other creditors. If you miss payments, you could lose your right to pay in instalments and be asked to pay the full annual amount immediately.

From there, the council can apply to the magistrates’ court for a liability order, which opens the door to bailiff visits, attachment of earnings, or even deductions from your benefits. Each stage adds fees and makes the debt harder to clear.

Bailiff Action Is Increasing

Councils are outsourcing more debt collection to private enforcement agents than ever before. If your arrears have been passed to bailiffs, you will face additional fees on top of what you already owe. A compliance stage fee of £75 is added as soon as the case is referred, rising to £235 if a bailiff visits your property.

Many people do not realise a liability order has been made against them until enforcement officers arrive at their door. If you have received any letters about unpaid council tax, do not ignore them.

You Might Be Paying Too Much

It is worth checking whether your property is in the correct council tax band. Thousands of homes across the country are banded incorrectly based on outdated 1991 valuations. If your band is wrong, you could be entitled to a refund and a lower bill.

You should also check whether you qualify for any discounts or exemptions. Single-person households, full-time students, carers and people on low incomes may all be eligible for reductions. Many people miss out simply because they have not applied.

Council Tax Debt Does Not Disappear

Unlike some other debts, council tax arrears do not go away with time. Councils can pursue unpaid amounts for up to six years, and if court action has already been taken, even longer. Ignoring the problem only makes it worse.

The sooner you seek advice, the more options you have. Early intervention can prevent bailiff visits, reduce fees and help you reach a repayment arrangement you can actually afford.

Take Control of Your Council Tax Arrears

You do not have to face council tax debt alone. Our team provides free, confidential advice and mediation for people across England and Wales. We can negotiate with your council and enforcement agents on your behalf to find a solution that works for your budget.

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