If you need help with council tax debt there are places that you can turn to for support. I am by no means a financial expert but seeing how many people on my feed are concerned about council tax rises and their council tax debt, I have put this post together with useful resources.
Don’t panic, there is always something that can be done
- Verify that you have the correct balance by checking your latest council tax bill or contacting your council directly.
- Check discounts and exceptions, you might be eligible for discounts, such as a single-person discount or exemptions for full-time students or low-income households.
Speak to your council and explain your situation
- Reach out to your council’s billing department. Councils will often work with you to spread arrears into manageable monthly payments. (Be realistic about what you can afford.)
Get independent professional advice
Contact one of the organisations below who provide free help with council tax debt.
Reductions and Support
- If you are on a low income or benefits, you may qualify for Council Tax Reduction (CTR). Apply through your council.
- Some councils offer hardship funds for those in severe financial distress.
Wider Debt Solutions
If Council Tax debt is part of a larger financial issue, contact one of the organisations above to discuss your wider debts. They may propose one of the following, but ensure you consult and independent expert first.
- Debt Management Plan (DMP): An informal agreement with creditors.
- Debt Relief Order (DRO): For debts under £30,000 if you have little income or assets.
- Individual Voluntary Arrangement (IVA): A legal agreement to pay off debt over time.
- Bankruptcy: As a last resort, but Council Tax debt can be written off in bankruptcy.
You Are Not Alone
According to the charity Step Change, in March 2024 the UK level of council tax debt was in excess of £6 billion [Source]. If you feel comfortable, speak with friends or family members, you will feel better for it. If you would rather not do this, consider joining a debt online community, there are a number of good forum communities out there. This way you can use an alias and keep you anonymity while getting support from others, and in turn you will likely be helping someone else.