Households in England who fall behind with council tax payments will be given more time and clearer warnings before losing the right to pay by instalments, under reforms confirmed by the government for April 2027.
The Ministry of Housing, Communities and Local Government published its response to a consultation on 12 October 2026, setting out a mandatory sequence of reminder and final notices before councils can demand the remaining annual bill.
What will change from April 2027?
Under the planned rules, councils must issue at least one reminder notice and one final notice before a taxpayer loses the right to pay by instalments. A final notice cannot be issued until at least 41 days after the first missed payment and at least 14 days after the latest reminder.
The household will then have 21 days from the issue of the final notice to bring the account up to date. This means at least 63 days must pass from the first missed payment before the remaining year's bill can become due in full.
The notice requirement will reset if the household brings its council tax account back up to date during the financial year.
Councils will retain debt recovery powers
The reforms do not cancel council tax debts or remove councils' powers to pursue unpaid bills. Ministers say local authorities must be able to collect revenue to fund public services, while households in financial difficulty should have more opportunity to seek support and arrange repayment.
The government will work with councils and debt-support organisations to prepare guidance and an optional template for reminder and final notices. It has also previously announced a £100 cap on the costs of obtaining a council tax liability order.
Default 12-month billing from April 2028
A separate change will make 12-month council tax billing the default from April 2028, rather than the current standard 10-month arrangement. Households will retain the option of requesting 10-month billing.
From April 2027, councils are expected to inform newly liable households that they can request 12-month payments. The government has clarified that councils will not be expected to switch these households automatically at that stage unless they ask.
Questions over council costs
In the consultation, some councils raised concerns about administrative costs, software changes, cashflow and the risk of debts growing during longer recovery periods. Others supported earlier engagement and clearer communication with households.
The government says it will undertake a further assessment of additional costs imposed on councils and work with local authorities and software providers before implementation.
When will the rules apply?
The new enforcement arrangements are scheduled for April 2027 and apply to England. They are not yet in force. The default 12-month billing change is scheduled for April 2028.