Council tax changes from April 2027: more time before you lose your instalments

On 12 October 2026, the Ministry of Housing, Communities and Local Government (MHCLG) confirmed the detail of new rules on how councils in England collect council tax from people who fall behind. It follows a short consultation in July and builds on reforms the government first announced in April 2026. The changes will be made through new regulations and are due to start in April 2027.

What’s changing

Under the current rules, one missed payment can put the whole year’s bill at risk very quickly. If you miss an instalment, the council sends a reminder. If you don’t catch up within 7 days, you can lose the right to pay by instalments, and the rest of the year’s bill becomes due at once. That can lead to a summons and a liability order within weeks.

From April 2027, councils will have to follow a set timetable first.

According to Local Government Lawyer’s report of the government’s response, this means formal enforcement shouldn’t start until at least three payments have been missed. If you pay monthly, 63 days covers roughly three instalments.

The government will also publish guidance for councils, including an optional template for the new reminder and final notices.

Billing over 12 months

Separately, the government plans to make 12 monthly instalments the default for all households in England from April 2028, instead of the usual 10. You’ll still be able to ask for 10. From April 2027, councils are expected to tell people who become newly liable for council tax that they can ask for 12. You don’t have to wait for this. You can already ask your council to spread your bill over 12 months.

Does this apply in Wales?

No. These changes are for England only. Wales sets its own council tax rules. The Welsh Government brought in its own changes on 1 April 2026, giving households in Wales 63 days to deal with a missed payment before enforcement action can be taken. If you live in Wales, the letters from your council should set out the timetable that applies to you.

What it means for you

More time and clearer letters should give you a better chance to catch up before things escalate. But a few things stay the same:

• The debt is still owed. The new rules give you more time to pay. They don’t reduce the bill.
• Enforcement still follows if you don’t catch up. Councils keep their powers to get a liability order and then use bailiffs, deductions from wages or benefits, and other methods.
• The £100 cap is on court costs only. It covers what the council adds for seeking a liability order. Bailiff fees are set separately: a £79 compliance fee for cases passed from 1 May 2026, with more added if a bailiff visits. See bailiff fees explained.
• Nothing changes before April 2027. If you miss a payment now, your council can follow today’s timetable.

What to do now

1. Contact the council as soon as you miss a payment. Don’t wait for the reminder. Ask to catch up over the rest of the year.
2. Ask to pay over 12 months. This lowers each payment and is available now.
3. Check you’re paying the right amount. You may be entitled to Council Tax Reduction, the 25% single person discount, or another discount or exemption.
4. If you’ve had a summons, act before the hearing. Read council tax summons: what to do before the hearing.
5. If the debt is already with bailiffs, read council tax arrears and bailiffs for how to pause enforcement and ask the council to take the debt back.
6. If you have other debts too, get free advice. Breathing Space can pause council tax enforcement for 60 days, and a Debt Relief Order can include council tax arrears.

Frequently asked questions

When do the new council tax rules start?

MHCLG says the changes will come in from April 2027, in England. Until then, the current rules apply.

Does the £100 cap apply to bailiff fees?

No. The cap only covers the costs a council adds when it applies to the magistrates’ court for a liability order. Bailiff fees are fixed by separate rules.

Do the changes apply in Wales?

No. Wales made its own changes from 1 April 2026, which also give households 63 days after a missed payment before enforcement action can be taken.

Can I already pay my council tax over 12 months?

Usually, yes. Ask your council. The government plans to make 12 monthly payments the default for all households in England from April 2028.

Sources

• GOV.UK, Council tax information letter 5/2026: Response to technical consultation on council tax enforcement
• GOV.UK, Council tax information letter 3/2026: Response to council tax administration consultation and other issues
• GOV.UK, Pay Council Tax arrears
• Local Government Lawyer, Government to press ahead with reforms to enforcement of council tax but promises to carry out new burdens assessment
• Welsh Government, New rules confirmed for fairer council tax collection
• legislation.gov.uk, The Council Tax (Administration and Enforcement) (Amendment) (Wales) Regulations 2025