Making Council Tax Fairer

We are improving the council tax system so that it is fairer for taxpayers. This will be the first change to the administration of bills since 1993.

The current system means that missing 1 monthly payment can have devastating financial consequences as households become liable to pay their entire annual council tax bill just 2 weeks later.

This Labour Government are putting an end to practices that push households into unnecessary financial distress. From next year, households will have 63 days, giving people more time to settle their bills. Councils will also be required to work with residents to agree sustainable repayment plans, rather than rushing to enforcement.

Reform of council tax debt collection is a priority, and these changes will protect those who fall behind from aggressive enforcement action. Liability order costs will be capped at £100, and unnecessary escalation will be slowed so a single missed payment doesn’t spiral into crisis.

Billing will move to 12 monthly payments by default, instead of being compressed into 10 months, helping families spread costs more evenly across the year.

We will also modernise outdated and stigmatising language that is used in the system, move towards a simpler application process and provide clearer and more consistent information on council tax bills.