Council Tax is a priority debt you must pay, as the consequences of falling behind can be worse than with other debts. If you’re worried about paying it, it’s important to have a plan.
What help is available?
Every council has a scheme to help you manage your payments so contact your local council as soon as possible. If you wait until you’ve missed payments, it might limit the help they can offer you.
- In England and Wales, find your local councilOpens in a new window on GOV.UK
- In Scotland, find your local councilOpens in a new window on mygov.scot
- In Northern Ireland, find your local councilOpens in a new window on nidirect
When you contact them, explain your situation and see if it’s possible to work out a new payment plan before you fall behind.
Here are some examples of support that might be offered:
- flexible payment plans – for example, you can ask to spread payments over 12 months instead of 10 months, meaning you’ll make smaller payments each month
- Council Tax or Rates break – for example, if you ask to pay in 10 monthly instalments, you can have a break in your bill in the months of February and March
- Council Tax reductions, Rates Relief or Rates Rebate if you’re on benefits or on a low income
- Council Tax or Rates discounts if you live alone or are the only adult in the household.
For more information on applying for a Council Tax reductionOpens in a new window see Citizens Advice
Watch out for Council Tax scams
There have been reports of fraudsters contacting people to tell them that they’re due a Council Tax reduction or refund. The scammer will say that they need an initial payment from you to release the refund.
Councils will never call or email you to ask for your bank details or ask you for money so they can send you a Council Tax overpayment.
Find out more about how to identify, and avoid, Council Tax and business rate scamsOpens in a new window on GOV.UK.
Make sure you’ve claimed everything you’re entitled to
If you’ve had an income shock, you could be entitled to government support. If you’re struggling financially, it’s important that you claim any extra help you can.
Take a few minutes to check which benefits you can claim and how much you could get a month with our Benefits Calculator
What happens if my financial situation gets worse?
Even if your finances are on track now, your income could change. Perhaps you’re self-employed and have a fluctuating income. This might mean an uncertain future.
You might need to review your finances so that you can cover your repayments. It’s useful to make a budget. If you have a little more going out than coming in, you may be able to rework how you’re spending your money.
Budget Planner
To help you manage your money, use our free and easy-to-use Budget Planner
Next steps if you have missed a payment
If you’ve already missed a Council Tax payment, this means you’re in ‘arrears’.
Contact your council as soon as possible to let them know that your income has changed, and that you’re struggling to cover your bills.
For a helpful guide on dealing with Council Tax arrearsOpens in a new window, see the Citizens Advice website
As well as coming to an arrangement on the money you owe them, you should also talk about future bills – especially if you think you might struggle to pay them.
Make a budget, work out what money you have left after it, and ask the council for help.
Find out more on the StepChange website about how debts are collected when you are in arrears
For more information about how to make a plan to pay your debtsOpens in a new window, see the Citizens Advice website
When to get debt advice
If you’ve missed a payment, think you’re going to miss a payment or are juggling other debts and feel you need debt advice it’s important you pay them off in the right order as some are more urgent and some lenders have more power than others.
To help you work out which ones to pay off first, see our guide on How to prioritise your debts
Have you missed a payment?
Use our Debt advice locator tool to find free and confidential debt advice online, over the phone or near to where you live.
Extra support if you’re struggling financially and with your mental wellbeing
Having mental health issues might mean that you struggle to make the best money-based decisions for you, as well as act on them.
Find practical tips on how to manage financially and where to get free specialist help in our Money problems and mental wellbeing guide
Remember, if you’re struggling financially and with your mental wellbeing, it’s worth getting in contact with your bank, building society, lender or whoever you owe money to, to discuss your options.
However, picking up the phone and talking about your problems is often easier said than done when you’re struggling with your mental health.
To get practical tips on how you can talk to those you owe money to, check out our guide How to have a conversation about money
Most places that you owe money to have policies about supporting you if you’re vulnerable. But they can’t help you unless you ask.
