Q: My neighbour told me that the way we pay council tax is changing but I can’t see anything about that in my recent council tax bill. Can you explain?
A: The government is currently consulting on the administration of council tax including:
Changing the ways council tax is billed, collected and enforced
modernising the support available in the system
supporting councils to improve efficiency
The government says that it is aiming to create a fairer and more efficient system for taxpayers and local authorities.
One of the proposals is to change council tax billing from 10-months to 12-months. Another is to amend how council tax is collected – including giving households more time before councils can demand full payment, and placing a cap on the fees when councils seek liability orders for unpaid tax.
Other issues which are up for consultation include:
modernising council tax disregards, to ensure they continue to support those they were intended to
improving efficiency in billing for councils.
exploring whether there is anything the government can do to remove barriers to effectively challenging bandings
Tom MacInnes, Director of Policy at Citizens Advice, said:
‘Spreading council tax payments over 12 months rather than 10 is a good start – it will help people to budget more effectively, especially those on lower incomes.
‘We also welcome the government’s review of how council tax is collected – something Citizens Advice has been campaigning for.
‘Council tax is our second biggest debt query area, narrowly behind energy arrears. A quarter of clients with council tax arrears need advice about dealing with bailiffs, which can be a terrifying experience. Current rules mean small debts quickly spiral out of control – worsening hardship rather than providing the support people need to get back on their feet.’
You can read the full consultation document online at https://www.gov.uk/government/consultations/modernising-and-improving-the-administration-of-council-tax and, if you want to respond, you can do so either online or by emailing [email protected] or by writing to:
Ministry of Housing, Communities and Local Government Local Tax Team,
Local Government Finance
SE Quarter – 2nd Floor
Fry Building
2 Marsham Street
London SW1P 4DF
The consultation closes on 12th September 2025.
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