Council tax in England: 63 days before you lose the right to pay in instalments

On 12 October the government confirmed new mandatory steps in council tax debt enforcement in England. The reform is meant to give people more time to contact their council and clear arrears before they lose the right to keep paying the tax in monthly instalments.

When do the new rules start?

The changes take effect from April 2027. Until then the current rules apply, so a missed payment cannot be ignored while waiting for the reform: contact your council straight away.

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The new rules cover England. Council tax in Scotland and Wales is regulated separately, and Northern Ireland uses the domestic rates system.

What will the council have to send you?

Before you lose the right to pay in instalments, the council will have to send at least two documents: first a reminder notice, then a final notice. The requirement starts again if you fully restore your payment schedule within the financial year and later fall behind again.

The government will also produce guidance and a non-mandatory standard template for these notices. The letters are meant to explain more clearly how much is owed, what happens if it is not paid, and where to get help.

How are the 63 days counted?

A final notice cannot be issued earlier than 41 days after the first missed payment. At the same time it cannot be sent earlier than 14 days after the most recent reminder notice.

Once the final notice is issued you have a further 21 days to clear the arrears it states and keep paying by instalments. Taken together, the right to pay in instalments cannot be ended earlier than 63 days after the first missed payment.

This is extra time, not debt forgiveness. The duty to pay council tax remains, and once the set process is complete the council can move to formal enforcement.

How much can be added for a liability order?

From April 2027 the costs a council adds for applying for a liability order will be capped at £100. A liability order is the court permission to use further collection methods, including deductions and enforcement agents.

The government also confirmed that organisations using certified enforcement agents — including councils with in-house staff — will have to be accredited by the Enforcement Conduct Board. The enforcement tools themselves are not being withdrawn.

When will bills be spread over 12 months?

From April 2027 households becoming liable for the first time must be told they can ask to pay over 12 months. Councils will not yet be obliged to move them onto that schedule automatically.

For all households, payment over 12 months rather than ten becomes the default option from April 2028. The ten-month schedule will remain available on request.

What should you do if you are behind now?

Do not wait for a final notice: tell the council about your financial difficulty and ask for an affordable payment plan. At the same time check whether you qualify for Council Tax Reduction, the single person discount and other reliefs. They are usually not applied automatically.

Bill levels, discounts and what currently happens when you fall behind are set out in our full council tax guide. We have separately explained why bills in some London boroughs could rise sharply.