Council Tax Debt: How Missing One Payment Can Lead to Bigger Financial Troubles

Council tax debt can affect anyone, as council tax is a bill everyone needs to pay. It helps fund local services like rubbish collection, schools, and roads.

The amount you pay depends on your home’s value and where you live. Your council will usually let you pay this bill monthly, spreading the cost over the year.

If you miss one payment, your council might ask you to pay the whole year’s bill straight away. 

This can be very stressful if you are already struggling with money.

How Big Is The Council Tax Debt Problem?

Citizens Advice recently shared some worrying numbers:

💷 The percentage of Citizens Advice clients with council tax debt has risen from 45% in 2019 to 47% now.

💷 Many people owe much more than before. The average council tax debt is now at its highest level.

💷 Half of the people getting debt help from Citizens Advice are in a ‘negative budget,’ meaning they have more money going out than coming in.

Why Do Councils Have This Rule?

Councils need money to keep services running. 

When a payment is missed, they worry they might not get the money they need. By asking for the full amount, they try to make sure they get paid. 

However, this rule can make things much harder for people already finding it difficult to pay bills.

What Happens If You Don’t Pay Your Council Tax?

💷 Reminders and Final Notices: At first, your council will send a reminder. If you don’t pay within seven days, they might send a final notice asking for the whole year’s payment.

💷 Court Action: If you still don’t pay, the council can apply to the court for a ‘liability order’. This is a legal demand for the money. You might also need to pay court costs, which can add to your debt.

💷 Debt Collectors (Bailiffs): With a liability order, councils can send bailiffs to collect the debt. This can be scary, and bailiffs may add their own fees to what you owe.

💷 Deductions from Your Benefits or Wages: If bailiffs can’t get the money, the council might take money straight from your wages or benefits.

💷 Prison Risk (in Extreme Cases): It is rare, but if you don’t pay your council tax and refuse to cooperate, a court could send you to prison.

What Can You Do If You Are Struggling with Council Tax Debt?

💷 Talk to Your Council: Contact them as soon as you know you might miss a payment. They might agree to a payment plan.

💷 Check for Discounts or Help: Some people can pay less council tax. This includes those with low income, single adults, or people with disabilities.

💷 Prioritise Your Bills: Council tax is a priority debt. This means it is very important to pay it before other bills like your phone bill or subscriptions.

💷 Get Advice: Services like Citizens Advice can help you understand your options. They offer free, confidential advice on dealing with debts.

How IE Hub Can Help

At IE Hub, we know how hard it can be to manage bills. Our free tool can help you build a budget, see where your money is going, and share your financial situation with companies you owe money to.

This can make it easier to set up payment plans or find other support.

If you are feeling overwhelmed, visit IE Hub to get started. We are here to help you take control of your finances, one step at a time.

Remember

You are not alone. Many people are struggling with council tax and other debts. The sooner you take action, the more options you will have. Start today and make a plan to get back on track.