Council Tax Support Cuts: How Low-Income Households Are Affected

Updated for 2026

Council tax support cuts continue to place enormous pressure on low-income households across England and Wales. Since the old Council Tax Benefit system was abolished in 2013 and replaced with locally run Council Tax Reduction (CTR) schemes, many of the poorest families have been left paying a share of council tax for the first time, often with devastating consequences.

How Council Tax Support Cuts Have Affected Low-Income Families

When the government transferred responsibility for council tax support to local authorities in 2013, it came with a 10% funding reduction. Councils were left to design their own schemes, and most chose to pass some of that shortfall on to working-age claimants. The result: millions of people on the lowest incomes were suddenly expected to pay a minimum contribution towards their council tax, typically between 5% and 30% of the full bill.

More than a decade on, the situation has only worsened. Research from the Joseph Rowntree Foundation and the New Policy Institute has consistently shown that councils in the most deprived areas tend to offer the least generous support. Meanwhile, council tax bills themselves have risen sharply year on year, with the 2025/26 increase adding further strain to already stretched budgets.

The Real-World Impact on Families

For households already living on tight margins, even a relatively small council tax bill can tip the balance. Many families who previously paid nothing towards council tax now face bills of several hundred pounds a year. When those bills go unpaid, councils can apply for a liability order at the magistrates’ court, and from there the debt can escalate quickly through enforcement agent fees and other charges.

Collection rates for minimum payments have been consistently poor. Government data shows that a significant proportion of people asked to pay under local CTR schemes simply cannot afford to do so. This leads to a cycle of arrears, court summons, and in many cases, visits from bailiffs.

What You Can Do If You Are Struggling

If you are falling behind on your council tax, it is important to act early. Ignoring the problem will not make it go away, and the longer you leave it, the more the debt can grow through added court costs and bailiff fees.

Here are some practical steps you can take:

• Contact your council directly and ask about hardship funds or discretionary reductions. Many councils have a Section 13A(1)(c) discretionary reduction policy that allows them to reduce or write off council tax in exceptional circumstances.
• Check whether you qualify for a Council Tax Reduction. Eligibility varies by area, so it is worth checking with your local authority even if you have been turned down before.
• If bailiffs have already become involved, know your rights. Enforcement agents must follow strict rules set out in the Taking Control of Goods Regulations 2013, and they cannot force entry to your home for council tax debt.
• Consider whether an attachment of earnings order might be a more manageable way to repay what you owe, as it spreads the cost through your wages.

Council Tax Advisors Can Help

Falling into council tax arrears can feel overwhelming, but you do not have to deal with it alone. At Council Tax Advisors, we offer practical guidance and support to help you understand your options and take control of the situation. We can help you negotiate with your council, challenge unfair enforcement action, and put together a realistic repayment plan.

With council tax bills continuing to rise and local support schemes under constant pressure, knowing where to turn for help has never been more important. Get in touch with us today and let us help you find a way forward.