Council tax and fines · 4 min read
Council tax arrears taken from benefits: how deductions work
After a liability order, the council can ask the DWP to take council tax arrears from Universal Credit and other benefits. How deductions work, the 15% cap on Universal Credit deductions, and what to do if you're left short.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 3 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
If the council has a liability order and you receive certain benefits, it can ask the DWP to take a fixed amount from your benefit to pay your council tax arrears. It’s often cheaper than bailiffs because no enforcement fees are added. For Universal Credit, total deductions are generally capped at 15% of your standard allowance (since 2025), with some exceptions. If you’re left short, contact the council and the DWP and get advice.
Which benefits can council tax be taken from?
After a liability order, the council can apply to the DWP for deductions from benefits including:
- Universal Credit
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Income Support
- Pension Credit
The amount taken is a fixed sum set by the rules, rather than an amount the council chooses.
The Universal Credit deductions cap
Universal Credit can have several deductions at once – for advances, rent arrears, energy arrears, council tax and other debts. Under the Fair Repayment Rate, introduced in April 2025, the overall cap on most deductions fell from 25% to 15% of your standard allowance. Some “last resort” deductions, such as rent or energy arrears and child maintenance, can go above that cap. Deductions follow a priority order, so if you already have higher-priority deductions, council tax may wait.
DWP figures show around 21% of Universal Credit households with deductions were at the 15% cap in February 2026.
Is it better than bailiffs?
For many people, yes. Deductions from benefits:
- avoid bailiff fees (£79 compliance and £247 or more for a visit)
- mean no visits to your home
- spread payments over time in small amounts
But if you’re already managing on a low income, any deduction can hurt.
If deductions leave you short
- Contact the DWP and explain your situation. If you’re in hardship, ask whether deductions can be reduced or rescheduled.
- Contact the council to discuss a different arrangement.
- Check you’re getting Council Tax Reduction so that your current bill is as low as possible. See Council Tax Reduction: how to claim.
- Look at all your debts together. If you have little spare income and few assets, a free Debt Relief Order may include your council tax arrears. See the DRO guide.
- Get free advice from MoneyHelper and debt charities, or use our form to speak to an FCA-authorised adviser.
Council tax is a priority debt
Even with deductions in place, keep paying your current council tax. Missing it can lead to new arrears, another liability order and possibly bailiffs. Read priority debts.
Frequently asked questions
Can the council take council tax from my Universal Credit without telling me?
The council needs a liability order first, and you should be told about the deductions. Check your Universal Credit statement to see what’s being taken.
Can council tax be taken from PIP or Disability Living Allowance?
Deductions for council tax arrears are generally taken from means-tested benefits like Universal Credit, not from disability benefits like PIP.
Can I ask for deductions instead of bailiffs?
Yes. If you receive a qualifying benefit, ask the council to apply for deductions rather than passing the debt to bailiffs.
Sources
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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