Council tax increase 2025/26 UK - English town hall building

Council Tax Increase 2025/26: What English Households Need to Know

Updated for 2026

The council tax increase for the 2025/26 financial year has pushed average bills to record levels across almost every type of local authority in England. If you have been wondering why your bill has gone up again, here is a straightforward breakdown of what changed, what it means for you, and where the money goes.

How Much Has Council Tax Gone Up?

The average Band D council tax increase set by local authorities in England is now \u00a32,280. That is an increase of \u00a3109, or 5.0%, on the previous year’s figure of \u00a32,171. This includes all precepts: the main council tax charge, the adult social care precept, police and fire precepts, and parish council precepts.

The average council tax per dwelling (taking into account that most homes sit in bands A to C, not Band D) stands at \u00a31,770 for 2025/26.

Key Figures at a Glance

Average Band D council tax (England): \u00a32,280
Overall council tax requirement: \u00a344.1 billion
Average council tax per dwelling: \u00a31,770
Increase in parish precepts: 7.4%
Adult social care precept contribution: \u00a3654 million, adding \u00a334 to the average Band D bill

Adult Social Care: The Biggest Pressure on Bills

Councils with adult social care responsibilities were allowed to raise bills by an additional 2% on top of the core council tax increase. Out of 153 authorities with these responsibilities, 147 used the full 2%. Only six applied part of the allowance. That social care precept alone adds \u00a334, or roughly 1.5%, to the average Band D bill.

The rising cost of adult social care has been the single biggest driver of council tax increases since 2016/17, and there is no sign of that easing any time soon.

Regional Variations Across England

Council tax is not the same everywhere. Where you live makes a real difference to what you pay:

London: \u00a31,982 average Band D (4.7% increase)
Metropolitan areas: \u00a32,289 (5.6% increase)
Unitary authorities: \u00a32,366 (5.2% increase)
Shire areas: \u00a32,344 (4.8% increase)

Metropolitan and unitary authority areas saw the sharpest rises, while London remains below the national average because inner London boroughs have historically lower council tax rates.

Council Tax by Authority Type

England average: \u00a32,280 (5.0%)
Inner London boroughs: \u00a31,192 (4.8%)
Outer London boroughs: \u00a31,688 (5.1%)
Metropolitan districts: \u00a31,936 (5.4%)
Shire unitary authorities: \u00a31,984 (5.2%)
Shire districts: \u00a3276 (3.8%)
Greater London Authority: \u00a3490 (4.0%)
Combined authorities: \u00a386 (16.6%)
Police and crime commissioners: \u00a3282 (5.2%)
Fire and rescue authorities: \u00a393 (5.7%)

Referendum Limits and Council Decisions

Of the 384 authorities subject to referendum rules in 2025/26, 293 raised council tax by the maximum amount allowed. Another 56 came close to the limit. Just eight councils either froze or reduced their council tax. No authority exceeded its referendum threshold.

In practical terms, most councils are raising bills by as much as they legally can without triggering a public vote.

Long-Term Trends: How Much Has Council Tax Risen Over 15 Years?

In 2011/12, the average Band D council tax bill was \u00a31,439. By 2025/26, it has reached \u00a32,280, a 58% increase over 15 years. The steepest rises have come since 2016/17 when the adult social care precept was introduced.

For many households, wages have not kept pace with these increases. That is one of the key reasons why council tax arrears have become such a widespread problem across England.

Parish Precepts: The Hidden Extra

If you live in an area with a parish or town council, you are also paying a parish precept on top of your main council tax. The average parish precept rose by \u00a36.32 (7.4%) to \u00a392.22 in 2025/26. There are 8,911 precepting parishes in England, collectively raising over \u00a3858 million.

What Else Changed in 2025/26?

Second homes premium: from April 2025, councils gained the power to apply additional charges on second homes, increasing the tax base in some areas
New combined authority precepts: some combined authorities, including the East Midlands and North East, began levying precepts for the first time
No major local government reorganisation affecting council boundaries or responsibilities

What Does This Mean Going Forward?

The 2025/26 figures confirmed what most people already suspected: council tax keeps going up, and there is no realistic prospect of that changing soon. Local authorities remain under severe financial pressure, particularly those responsible for adult social care and children’s services.

With the 2026/27 financial year now underway, many households are bracing for yet another rise. If you are already struggling with your council tax bill, it is worth acting sooner rather than later.

Government source: Council Tax levels set by local authorities in England 2025 to 2026

Struggling With Your Council Tax Bill?

If you are behind on your council tax or worried about keeping up with rising bills, you are not alone. There are options available to you, from council tax support and payment plans to formal debt solutions.

Read our guide on what happens if you do not pay council tax to understand the process, or get in touch for free, confidential advice.

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