What Happens If You Can't Pay Council Tax?
Council tax is a statutory debt with specific enforcement powers. Not paying can lead to bailiff visits and even committal to prison in extreme cases. Proactive action is essential.
Quick Answer
If you cannot pay your council tax, contact your local council immediately to discuss a payment plan or reduction. Ignoring it can lead to the council obtaining a liability order from the magistrates' court, and then instructing bailiffs. In extreme cases of wilful non-payment, a person can be committed to prison for up to 90 days.
Full Explanation
Council tax is not an ordinary civil debt — it is a statutory obligation and councils have specific enforcement powers that differ from those available for ordinary debts. The enforcement process begins when a payment is missed: the council will issue a reminder, then a final notice, then a summons to the magistrates' court.
At the magistrates' court, the council applies for a 'liability order' — a court order confirming the amount owed. The court will grant the order if the amount is owed and unpaid; it is not a full civil hearing and the debtor's ability to pay is not considered at this stage. Once a liability order is obtained, the council has a range of enforcement options without needing to return to court.
Options available after a liability order include: instructing certificated enforcement agents (bailiffs) to recover the debt; making an 'attachment of earnings' order if the debtor is employed; making an 'attachment of benefits' order if the debtor receives certain benefits; applying for a charging order on property; and, in last resort, applying to the magistrates' court for a 'commitment to prison' order for wilful refusal or culpable neglect (maximum 90 days).
Prisonment for council tax is rare and only used as a last resort where the court is satisfied the person has wilfully refused or neglected to pay — inability to pay is a complete defence against committal. However, the process can be extremely stressful and the costs of enforcement mount rapidly.
Many councils operate a Local Council Tax Support (LCTS) scheme that can significantly reduce the amount owed for people on low incomes. Eligibility depends on your income, savings, and household composition. Apply to your council's benefits team as soon as possible — reductions can be backdated in some circumstances.
Legal Basis
- §Local Government Finance Act 1992 (council tax obligation)
- §Council Tax (Administration and Enforcement) Regulations 1992
- §Tribunals, Courts and Enforcement Act 2007 (bailiff enforcement)
What To Do
Contact the Council Immediately
As soon as you know you cannot pay, contact your local council's revenues department. Many councils will agree to a revised payment plan or a temporary arrangement. Acting proactively avoids the liability order process.
Apply for Local Council Tax Support
Apply for a LCTS reduction if you are on a low income. This is a council-administered scheme and can substantially reduce your liability. Apply online via your council's website.
Check for Other Discounts and Exemptions
Check whether you qualify for: a single-person discount (25%); a severe mental impairment exemption; student exemption; disability banding reduction; or an empty property discount. Many people miss these entitlements.
Respond to Any Court Summons
If a liability order summons arrives, do not ignore it. Contact the council's revenues department before the hearing date and try to agree a payment arrangement. The court will still make the order, but engaging early prevents escalation to bailiffs.
Deal With Bailiff Visits
If bailiffs attend, you have rights about what they can seize — see the bailiff scenario. Contact the council directly to agree payment arrangements; the council can recall a bailiff instruction if payment is agreed.
Important Deadlines
Important Warnings
Council tax has no statute of limitations in the same way as ordinary debts — councils can pursue arrears going back many years via the liability order route.
Committal to prison for non-payment is rare but real — do not assume it cannot happen. The process requires proof of wilful refusal, but the stress and cost of getting to that point should be avoided.
Council tax bailiffs have the right to force entry if a magistrates' court has issued a commitment warrant — this differs from ordinary civil debt bailiffs.