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Priority Debts· 3 min read

Priority Debt: Council Tax

Council tax is a priority debt because the consequences of not paying can be severe, including bailiffs, deductions from your wages or benefits, and in extreme cases in England, prison. If you are behind on council tax, it is important to act quickly. We can help you understand your options and deal with your council.

Falling behind on council tax

If you are behind on your council tax, you are probably worried about what might happen next. Council tax is treated as a priority debt because the consequences of not paying can be serious. But there are things you can do, and the earlier you get help, the more options you have.

Why council tax is a priority debt

Council tax is a priority because of what the council can do to collect the money. Unlike most other debts, unpaid council tax can lead to deductions from your wages, bailiff visits, and in England, even prison. That is why it is so important to deal with it quickly.

What happens if you do not pay

Before the council can take enforcement action against you, they must first apply to a Magistrates' Court for a liability order. This is a court order that confirms you owe the money and gives the council legal powers to collect it.

Once the council has a liability order, they can use any of the following enforcement actions:

  • Bailiff action. The council can instruct enforcement agents (bailiffs) to visit your home and seize goods to be sold at auction. The bailiffs' fees are added to your debt.
  • Attachment of Earnings Order. The council can ask your employer to take a fixed percentage of your pay directly from your salary and send it to the council. You do not get a choice about this once the order is in place.
  • Deductions from benefits. The council can arrange for money to be deducted directly from benefits like Universal Credit or Pension Credit.
  • Prison (England only). In extreme cases, if a magistrates' court finds that you have deliberately refused or neglected to pay when you had the means to do so, you can be sent to prison for up to 90 days. This is rare and only applies in England, not Wales.
  • Property charging order. If you own your home and the debt is over £1,000, the council can secure the debt against your property, similar to a mortgage. This means the debt would need to be paid off if you sell.
  • Bankruptcy. If you owe more than £5,000, the council can petition to make you bankrupt. This can lead to the loss of your assets, including your home.

What you can do

If you are behind on council tax, do not ignore the problem. Here is what you can do:

  • Contact your council. Many councils will agree to a repayment plan if you get in touch before things escalate. Even if you have already received a summons or liability order, it is still worth asking.
  • Check if you qualify for a discount or exemption. You may be entitled to a council tax reduction, a single person discount, or an exemption (for example, if you are a full-time student). We can help you check.
  • Challenge the liability order if it was wrong. If you were not given proper notice, or the amount is incorrect, there may be grounds to challenge it.
  • Get free debt advice. Council tax arrears are often part of a bigger picture. We can look at all your debts and help you work out what to prioritise and how to manage them.

Get help

Falling behind on council tax can feel overwhelming, especially when letters from the council or bailiffs start arriving. You do not have to deal with this alone.

All our advice is free and confidential.