Tackle council tax arrears before they escalate

Council tax is a priority debt, and arrears can escalate quickly if they are ignored. Acting early gives you the best chance of agreeing an affordable arrangement and avoiding extra costs. This guide explains the general process in England and Wales and how to respond at each stage.

Step by step

1. Read every letter carefully

   Look at what stage you are at: a reminder, a final notice, a court summons or a liability order. Each stage has different options and deadlines. Note any dates on the letters and act before them.

2. Check your bill is correct

   Confirm the property band, the number of adults counted and the period covered. Ask about a single person discount, student exemptions, disability reduction and your council's council tax reduction scheme if you are on a low income. Correcting the bill can reduce or clear the arrears.

3. Contact the council early

   Call or write to the council tax team, explain your situation and ask to pay the arrears in affordable instalments. Base your offer on a realistic budget. Ask for confirmation of any arrangement in writing.

4. Respond if you receive a summons

   A summons means the council is applying to the magistrates' court for a liability order, which usually adds costs. Contact the council immediately, as you may still be able to agree an arrangement before the hearing. Get advice if you think you do not owe the money.

5. Know what enforcement means

   After a liability order, the council can use enforcement agents, deductions from earnings or certain benefits, and other recovery methods. Enforcement agents must follow strict rules, including giving notice before visiting. If you are contacted by an enforcement agent, get advice quickly.

6. Get free advice and keep paying

   Citizens Advice, StepChange and National Debtline can help you negotiate, check whether you are vulnerable under enforcement rules and look at your wider finances. Keep up with the current year's bill as well as any arrangement for the arrears.

Ready-to-use checklist

• Stage of recovery identified from letters
• Band, occupants and dates on the bill checked
• Discounts, exemptions and reductions checked
• Council tax reduction scheme application made if eligible
• Affordable offer based on a budget prepared
• Arrangement confirmed in writing
• Free debt advice contacted

Practical tips

• Keep a copy of every letter in date order so an adviser can see the full picture.
• If you receive benefits, deductions from benefits may be possible and can sometimes be lower than other methods.
• Tell the council about any vulnerability, such as serious illness, as this can affect how enforcement is handled.

Common problems