Council tax arrears: what happens and what to do

Council tax arrears rarely arrive on their own. They usually build up alongside credit cards, loans or other bills, and the council’s powers mean they need dealing with first. The good news is that the arrears, though not the current year’s bill, can usually be included in an IVA, a debt relief order (DRO) or bankruptcy. This guide covers how councils recover arrears and how council tax fits into the rest of your debts.

Is council tax a priority debt?

Yes. If you do not pay, the council can get a liability order from the magistrates’ court. With that order it can use enforcement agents (bailiffs), take money from your wages or benefits, or ask for a charging order on a home you own. In England a court can, as a last resort, send someone to prison for up to 3 months.

Credit cards, loans and catalogues are different: those lenders have to take you to court and get a county court judgment before they can use bailiffs. That is why debt advisers put council tax near the top of the list, along with rent or mortgage and energy.

What happens if you miss a council tax payment?

The process depends on where you live.

England

1. Reminder. The council sends a reminder giving you 7 days to pay the missed amount. If you do not pay within 7 days, you have to pay the whole year’s council tax instead.
2. Further reminders. You get a second reminder if you miss another payment. If you miss a payment a third time in the year, the council can send a final notice asking for the whole year’s bill without another reminder.
3. Summons. The council applies to the magistrates’ court for a liability order. At least 14 days must pass between the summons being served and the order being made, and court costs are added.
4. Liability order. The court makes the order if the amount is due and unpaid. The council then chooses how to enforce it. See what is a council tax liability order? for what happens at the hearing.

The council cannot apply for a liability order more than 6 years after the tax became due.

This may change. In July 2026 the government consulted on making councils in England take set steps before they can seek a liability order and move to formal enforcement. No decision had been published by September 2026.

Wales

From 1 April 2026, Welsh councils follow a slower process. A reminder no longer takes away your right to pay in instalments. The council must send a final notice, at least 41 days after the payment was due and at least 14 days after any reminder, giving you 21 days to pay what is overdue. Only if you do not pay by then does the rest of the year’s bill become due. The Welsh Government says this gives every household at least 63 days from a missed payment before the council can apply to court. Prison for council tax debt was abolished in Wales from 1 April 2019.

Scotland

Scottish councils use a summary warrant instead of a liability order. The warrant adds a charge of 10% to the arrears, and sheriff officers’ fees can be added too. You must be sent a charge for payment, giving you 14 days to pay in full, before further action such as arresting your wages or bank account or sending sheriff officers to take belongings. Water and sewerage charges are collected with council tax in Scotland, so they are recovered the same way.

Northern Ireland

There is no council tax in Northern Ireland. Domestic rates are collected by Land & Property Services. If you do not pay or agree an arrangement, it can take court action, and once there is a judgment the Enforcement of Judgments Office sends a notice of intention giving you 10 days to pay. Enforcement can add £150 to £250 in costs and can include deductions from your earnings, a charge on your property or an order against your bank account.

What can the council do after a liability order?

In England and Wales, once it has a liability order the council can:

• instruct enforcement agents, who must give you at least 14 clear days’ notice before visiting and whose fees are added to what you owe (see what council tax bailiffs can do)
• tell your employer to take money from your wages (see attachment of earnings)
• ask the Department for Work and Pensions to take money from certain benefits, including Universal Credit
• apply for a charging order on a home you own, if at least £1,000 is owed under the order
• petition for your bankruptcy, if you owe £5,000 or more
• in England only, ask the court to send you to prison, as described above

The council cannot use two of these methods at the same time for the same liability order, but it can switch from one to another if the first does not work.

How do you deal with council tax arrears alongside other debts?

1. Keep paying this year’s bill if you possibly can. The current year’s instalments are the most urgent part, because new arrears restart the recovery process.
2. Check you are paying the right amount. Ask the council about Council Tax Reduction, discounts and exemptions. If you live alone or your income is low, you may be paying more than you need to.
3. Offer a realistic amount towards the arrears. Work out a budget first so you know what you can afford after rent, energy and food. Ask the council to spread the arrears or restore your instalments.
4. Put non-priority debts second. Tell your card and loan lenders you are dealing with priority debts and offer what is left.
5. Ask about Breathing Space. In England and Wales, a debt adviser can start a Breathing Space, which pauses enforcement on council tax arrears for up to 60 days. It covers council tax only once it is in arrears, so current instalments still have to be paid.

It is never too late to contact the council. A liability order does not stop you agreeing an affordable arrangement, and agreeing one before bailiffs visit avoids further fees.

Can council tax arrears go into an IVA, DRO or bankruptcy?

Yes, the arrears can go into all three in England, Wales and Northern Ireland. The current year’s council tax, and any bills that fall due later, must still be paid.

• IVA. Citizens Advice and National Debtline both list council tax arrears as a debt that can be included. Once the IVA is approved, the council is bound by it like other creditors, so it cannot take further action to recover the arrears included. If you fall behind on the new bill, the council can start recovery on the new arrears.
• DRO. Council tax arrears can be listed in a debt relief order, and the council cannot take action over them during the DRO. Citizens Advice says you must keep paying your council tax while the DRO lasts.
• Bankruptcy. Arrears owed when the bankruptcy order is made are included. Council tax for the period after that is your responsibility. A council can itself make you bankrupt if you owe it £5,000 or more.

Each option has different costs, conditions and effects on your home and credit file. IVA or debt relief order? compares the two most common. Scotland has no IVAs or DROs: arrears can be dealt with through a trust deed or sequestration instead, see debt solutions in Scotland.

What to do next

1. Open every council tax letter and check which stage you are at: reminder, final notice, summons, or a letter from enforcement agents.
2. Contact the council before the next deadline, explain your situation and offer what you can afford. Ask about Council Tax Reduction at the same time.
3. Get free, impartial debt advice from MoneyHelper, StepChange, Citizens Advice or National Debtline. An adviser can deal with the council for you and look at all your debts together: see where to get free debt advice.

For other kinds of debt and how each is treated, see types of debt. If you use our checker, we may pass your details to a licensed insolvency practitioner or debt adviser.