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Council tax bills and final demand letters on a kitchen table

Council Tax Arrears and Support Cuts: What You Need to Know in 2026

Written by admin on . Posted in Council Tax.

Updated for 2026

Council tax arrears remain one of the fastest-growing debt problems in England and Wales. Since the localisation of council tax support in 2013, millions of low-income households have been required to pay a portion of their bill for the first time, and the consequences continue to mount year on year. With council tax bills rising by up to 5% again in 2026/27, the pressure on struggling families is only increasing.

Council Tax Arrears: Why So Many Households Are Falling Behind

When the national Council Tax Benefit scheme was replaced by locally run Council Tax Reduction schemes in 2013, funding was cut by around 10%. Local authorities were left to design their own schemes, and many chose to require even the poorest households to pay something towards their bill. By 2026, most councils in England still require a minimum contribution of between 10% and 30% of the full council tax charge.

The impact has been significant. Research from the Joseph Rowntree Foundation and others has consistently shown that collection rates for these small amounts are poor, because the households affected simply cannot afford to pay. Hundreds of thousands of liability orders are issued each year by magistrates’ courts, and councils routinely instruct council tax bailiffs (officially known as enforcement agents) to collect the debts.

The Human Cost of Council Tax Support Cuts

The people hit hardest by these changes are often the most vulnerable: single parents, disabled people, pensioners on low incomes, and those on Universal Credit. For many, even a bill of £150 to £300 per year is an impossible burden on top of rising energy costs, food prices, and rent.

When a household falls into council tax arrears, the full year’s bill can become payable immediately, turning a manageable monthly payment into a debt of over £1,000 overnight. A council tax liability order is then obtained, and enforcement action can follow quickly, including bailiff visits with added fees, attachment of earnings orders, and even committal to prison in extreme cases.

What Can You Do If You’re Struggling?

If you are behind with your council tax payments, it is important to act quickly. There are several steps you can take:

  • Apply for a council tax reduction: check whether you qualify for your local authority’s council tax reduction scheme. Many people who are entitled to a discount do not claim it.
  • Contact your council: explain your situation and ask for a realistic repayment plan before enforcement action begins.
  • Know your rights with bailiffs: enforcement agents must follow strict rules under the Taking Control of Goods Regulations 2013. They cannot force entry to your home for council tax debt on their first visit.
  • Get free advice: organisations like Council Tax Advisors can help you understand your options and negotiate on your behalf.

Rising Bills Make the Problem Worse

With council tax rising again in 2026/27, the number of households falling into arrears is expected to grow further. Many councils have increased bills by the maximum amount permitted without a local referendum, adding hundreds of pounds to annual charges. For families already on the edge, this can tip the balance from just about managing to serious debt.

The team at Council Tax Advisors is here to help. We provide free, practical guidance on dealing with council tax arrears, negotiating with your council, and getting back on track with payments. If you are worried about a bailiff visit or have received a liability order, contact us today for confidential advice.