Part of: UK Council Tax 2026 — Complete Guide → Council Tax Arrears 2026
TL;DR: If you cannot pay Council Tax, several help routes are available before enforcement begins. Council Tax Reduction can reduce or eliminate the bill for low-income households. Section 13A of the Local Government Finance Act 1992 allows billing councils to grant discretionary hardship relief. Free FCA-authorised debt advice is available from StepChange, Citizens Advice, and National Debtline. Contact the billing council before missing a payment where possible.
Last reviewed: 27 April 2026
The Immediate Help Routes
If you are finding it difficult to pay Council Tax, several options exist before the situation escalates to reminder notices or enforcement:
Contact the billing council before missing a payment: Most billing councils have a revenues team willing to discuss realistic payment arrangements. Contacting them proactively - before the first missed instalment date - typically produces the most flexible options. Under Regulation 21 of the Council Tax (Administration and Enforcement) Regulations 1992, you have a statutory right to pay by instalments, and councils have discretion on how those instalments are structured.
Apply for Council Tax Reduction (CTR): CTR is a means-tested reduction in Council Tax for low-income households. It is administered by billing councils and can reduce your bill significantly - for Pension Credit Guarantee recipients, to zero. If you are not already receiving CTR, apply immediately through the billing council's online portal. CTR can be backdated in most cases.
Apply for section 13A discretionary hardship relief: Under section 13A of the Local Government Finance Act 1992, billing councils have discretion to reduce or remit Council Tax for households facing genuine hardship not captured by the standard CTR scheme. This is not an entitlement but is available where circumstances are exceptional. Apply with documented evidence of hardship.
Seek free debt advice: FCA-authorised debt charities provide free professional advice. StepChange (0800 138 1111), Citizens Advice (citizensadvice.org.uk), National Debtline (0808 808 4000), and Christians Against Poverty (capuk.org) all advise on Council Tax arrears without charge.
Your Legal Rights When You Cannot Pay
The right to pay by instalments: Under Regulation 21 of the Council Tax (Administration and Enforcement) Regulations 1992, Council Tax is payable in monthly instalments (typically 10 over the financial year). You cannot be required to pay the full year's balance in a single payment unless you have missed instalments.
The hardship consideration: Under section 13A of the Local Government Finance Act 1992, billing councils must consider genuine hardship before pursuing enforcement. This is not an automatic right but forms part of the billing council's obligations.
The vulnerability protocol: Under the Taking Control of Goods Regulations 2013, enforcement agents (bailiffs) must withdraw if they encounter a vulnerable person without another adult present. If you or another person in your household is vulnerable (significant mental health condition, disability, severe illness), inform the billing council and request a vulnerability flag on your account.
The 6-year limitation: Under section 9 of the Limitation Act 1980, Council Tax debts become time-barred 6 years from the date they became payable - provided you have not acknowledged the debt in writing or made any payment within that period.
Checking Other Benefit Entitlements
Universal Credit: If you are not already claiming Universal Credit and your income has dropped, check whether you qualify. UC does not automatically pay Council Tax - a separate CTR application to the billing council is always required - but UC income affects the CTR calculation significantly.
Pension Credit: If you are 66 or over and your income is low, Pension Credit is worth checking. Recipients of Pension Credit Guarantee Credit are automatically passported to maximum CTR, which can eliminate the Council Tax bill entirely. DWP estimates around 30% of eligible older people do not claim.
Attendance Allowance, PIP, or DLA: If you or a household member has a disability or care need, these benefits are not means-tested and also act as gateways to additional Council Tax reliefs (DBRS, SMI disregard).
What Not to Do
Do not ignore demands: Reminder and final notices escalate quickly under the statutory sequence. Under the Council Tax (Administration and Enforcement) Regulations 1992, missing two payments in a year results in the full annual balance becoming immediately due.
Do not pay an unregulated debt help company: Unregulated companies charge fees for services available free from FCA-authorised charities. Verify any organisation's FCA authorisation at register.fca.org.uk before engaging.
Do not take a payday loan to pay Council Tax: High-cost credit to cover Council Tax arrears typically compounds the problem. Address the Council Tax through the help routes described here rather than creating new debt elsewhere.
If Enforcement Has Already Started
If you are already in the recovery process (reminder received, summons issued, or liability order granted), the help routes remain available:
At reminder stage: Contact the council, arrange payment or a plan. No additional costs have been added yet.
At summons stage: Contact the council before the hearing date with a realistic payment proposal. Most councils will pause or withdraw the summons if a credible plan is agreed.
At liability order stage: Contact the council to negotiate a payment arrangement. Most councils still accept plans. Enforcement (DEA, bailiffs) may not have started yet.
Emergency recovery pause: Most billing councils will pause recovery action for 30 to 60 days when a debtor is formally engaged with an FCA-authorised debt advice charity. Contact the charity first, then notify the billing council.
The Council's Section 13A Duty to Consider
Under section 13A of the Local Government Finance Act 1992, billing councils have the power - and in some circumstances a duty - to consider whether to reduce or remit Council Tax in cases of genuine hardship. While this is a discretionary power, courts have held that councils must at least genuinely consider applying it where relevant circumstances exist.
What "genuine consideration" means: If you submit a hardship application with documented evidence, the billing council cannot simply reject it without examining the specific circumstances. A brief acknowledgement and rejection without reasons may constitute maladministration.
Your recourse if not considered properly: If the billing council dismisses a section 13A application without genuinely considering the hardship evidence, you can escalate to the billing council's complaints procedure and then to the Local Government and Social Care Ombudsman.
Universal Credit and Council Tax: The Common Misunderstanding
Universal Credit (UC) does not pay your Council Tax directly. This is one of the most common misunderstandings among people transitioning from legacy benefits.
If you have recently moved onto UC from Housing Benefit and other legacy benefits, you need to:
1. Apply separately to the billing council for CTR (the Council Tax equivalent of UC support)
2. Do this as soon as your UC claim is in payment, as CTR can be backdated
Some people moved onto UC and assumed their Council Tax was being covered. It is not. If you have been on UC for some time without applying for CTR, apply now - CTR can typically be backdated up to 3 months with good cause, and the billing council may consider longer backdating in exceptional circumstances.
Frequently Asked Questions
I've never missed a payment but I'm worried about the next one - what should I do now?
Contact the billing council before the payment date. Explain that you anticipate difficulty with the upcoming payment and ask about payment arrangement options. Most councils respond positively to proactive contact. Also check whether you qualify for CTR if not already applied.
Council Tax Reduction reduced my bill but I still can't pay the remaining reduced amount - what next?
Apply for section 13A discretionary hardship relief from the billing council with evidence of your financial position. Additionally, seek free debt advice from StepChange or Citizens Advice, who can assess your overall situation and advise on any further steps available.
I'm self-employed and my income has dropped significantly this year - do I qualify for Council Tax Reduction?
Yes, if your self-employed income brings you below the applicable amount (the income threshold set in the CTR scheme for your council). Apply to the billing council with self-employment income evidence - accounts, bank statements, or a self-employed income declaration. CTR applies to self-employed people as well as employees.
I received a bailiff compliance letter - is it too late to get free help?
No. Contact the billing council directly and ask to set up a payment arrangement. Many billing councils will pause bailiff action when a realistic payment plan is agreed and documented. Also seek free debt advice from StepChange or Citizens Advice, who can sometimes negotiate with the billing council on your behalf.
Can the billing council write off my Council Tax arrears entirely in exceptional hardship cases?
Yes, in certain qualifying circumstances. Under section 13A of the Local Government Finance Act 1992, billing councils have discretion to remit (cancel) Council Tax debts in genuine hardship cases. This is not routinely granted but is available where circumstances - such as terminal illness, severe long-term hardship, or debt that is genuinely uncollectable with no realistic prospect of recovery - are fully and clearly documented.
How we verified this
The instalment payment right is from Regulation 21 of the Council Tax (Administration and Enforcement) Regulations 1992. Section 13A hardship relief is from the Local Government Finance Act 1992. The 6-year limitation period is from the Limitation Act 1980, section 9. The vulnerability protocol is from the Taking Control of Goods Regulations 2013. FCA-authorisation of the debt charities is confirmed at the FCA register. MHCLG guidance covers Council Tax collection and enforcement. The IRRV provides professional guidance on billing council debt recovery.
Sources & Verification
- Local Government Finance Act 1992 (s13A): https://www.legislation.gov.uk/ukpga/1992/14/contents
- Council Tax (Administration and Enforcement) Regulations 1992: https://www.legislation.gov.uk/uksi/1992/613/contents
- Limitation Act 1980 (s9): https://www.legislation.gov.uk/ukpga/1980/58/contents
- StepChange Debt Charity: https://www.stepchange.org/
- Citizens Advice: https://www.citizensadvice.org.uk/debt-and-money/
- National Debtline: https://www.nationaldebtline.org/
- MHCLG Council Tax guidance: https://www.gov.uk/government/collections/council-tax-statistics
- IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.
