The Government has launched a major consultation into England’s “broken” council tax system. Proposed reforms, backed by Deputy PM Angela Rayner, aim to address long-standing issues around debt collection, unfair discounts, and funding inequality between areas.

If passed, millions could benefit — but until any changes are made, current rules remain in force, and the system can be unforgiving.

Why It Matters

• Council tax is classed as a priority debt

• Missing a single payment can lead to:

  • Your full annual bill being demanded within 3 weeks

  • A liability order via the courts

  • Bailiffs, wage deductions or benefits seizures

“The council tax system just doesn’t work for people who are struggling,” says Fiona Peake, debt expert at Ocean Finance.
“The Government has promised to crack down on harsh tactics, but new rules aren’t in place yet.”

Five Tips to Avoid Council Tax Debt

Landlord Today has published 5 tips to help:

1. Contact your council early

   • Ask about payment plans or crisis support funds — many councils have them, but don’t advertise them.

2. Check for discounts & exemptions

   • Single adults, students, carers, and those with a Severe Mental Impairment (SMI) could be paying too much — or nothing at all.

3. Review your tax band

   • You could be overpaying by hundreds if your property is misbanded. Check and challenge for free at GOV.UK.

4. Get free debt advice

   • Citizens Advice, Money Wellness, and similar groups can help stop enforcement action and negotiate with your council.

5. Switch to weekly or 12-month payments

   • Smaller, more manageable payments may be available — you just have to ask.