Council Tax Arrears

Why council tax is a priority debt

Council tax is a priority debt because councils have recovery powers that most creditors do not. If you do not pay, the consequences escalate faster than for a credit card or personal loan, which is why it should be dealt with before non-priority debts.

What happens if you fall behind

Council tax is usually payable in instalments across the year. If you miss one, the council sends a reminder giving you seven days to pay. If you do not, you can lose the right to pay by instalments and the whole year’s balance becomes due. The council then applies to the magistrates’ court for a “liability order”, which confirms you owe the money and unlocks its enforcement powers.

The council’s enforcement powers

Once it has a liability order, the council has several ways to recover the debt:

• Taking money directly from your wages (an attachment of earnings) or from certain benefits
• Passing the debt to enforcement agents (bailiffs), who can add fees and, after giving notice, take goods
• In England, as a last resort, applying to commit you to prison — this is rare, and the position differs in Wales and Scotland

Reduce your bill and get help

Before assuming you must pay the full amount, check whether you are entitled to pay less. You may qualify for Council Tax Reduction (also called Council Tax Support) if you are on a low income, a single-person discount of 25% if you live alone, or an exemption or discount for certain circumstances such as being a full-time student or having a severe mental impairment. Contact the council early — most will agree an affordable repayment arrangement — and get free debt advice to help you negotiate and to check the amount claimed is correct.