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The �ʶ�����is committed to making Council Tax in Wales fairer and more progressive, and we have achieved several improvements over the decades since the Council Tax system was created in 1993. We have consulted on future Council Tax reforms, including revaluation and redesigning the property tax bands in 2028, to make them fairer for people with less wealth. This plan has been approved by the Senedd through the . 

As we prepare for those major changes, we are working on improvements to the way Council Tax is collected. This consultation proposes changes to the enforcement framework to help councils manage Council Tax collection in a way that fosters earlier engagement and focusses on earlier intervention to prevent people becoming trapped in harmful cycles of spiralling debt. This includes making the legislative steps in the process clearer, adopting best practice that we know is already happening, and reviewing the amounts households owe at different stages.

The �ʶ�����is clear everyone has an obligation to pay Council Tax to help fund local services like schools and social care. Thousands of people are supported to manage Council Tax bills through a range of exemptions, discounts, and the Council Tax Reduction Scheme. This scheme is crucial for tackling poverty and supporting low-income households.

This consultation seeks views on proposed changes to improve the administration and enforcement of Council Tax. The consultation applies only to Wales. 

If you are having trouble paying your Council Tax, or you are already in debt with your Council Tax, contact your local council for help. They can check your eligibility for discounts or reductions, discuss payment options, and direct you to other support services. 

For free and confidential advice, call Advicelink Cymru on 0808 250 5700 or visit the Claim what’s yours website to check what other financial support you may be entitled to.

It is always best to reach out for help before you miss a Council Tax instalment.

What is Council Tax?

Council Tax is something we all must pay to help fund public services in our own community, like schools and social care, unless you are exempt. It is not a direct charge for each service you use. The amount you pay depends on your property’s value, who lives with you, and if you qualify for any discounts or support. This ensures everyone pays their fair share.

What does Council Tax pay for?

As taxpayers, we contribute over £2.8 billion a year towards the £11 billion cost of essential local services in Wales. This funding helps keep schools open, care for our loved ones, and support thriving communities. Council Tax part-funds hundreds of local services, including those provided by councils, police services, and fire services. Find out what your Council Tax pays for.

How we’ve made Council Tax fairer

The �ʶ�����has previously made several improvements to the Council Tax system and these are regularly recognised by key stakeholders. In 2011 the �ʶ�����capped the court fees associated with liability orders at a maximum of £70, and in 2013 we delivered a nationalised Council Tax Reduction Scheme for low-income households, which has been maintained and uprated every year since to keep pace with the cost of living.

In 2018 in partnership with local government, we focussed our efforts on assisting vulnerable groups by exempting young care leavers from paying Council Tax until age 25 and standardising the exemption that is available for people with a severe mental impairment. In 2019 the �ʶ�����ended the threat of imprisonment for non-payment of Council Tax and published a Protocol, raising collection standards across Wales. 

To tackle the root causes of an unfair tax system which currently places a higher burden relatively on those with lower wealth, in 2024 the Senedd approved the Local Government Finance (Wales) Act 2024. This Act paves the way for a revaluation of properties for Council Tax purposes in 2028 to create a fairer design of Council Tax , and then to ensure the system tracks economic conditions and is updated every five years. From April 2025 we have made further improvements to the Council Tax Reduction Scheme, enabling local councils to use Universal Credit data to automate applications for Council Tax support. We launched an experimental Debt Rescue Scheme pilot in Merthyr Tydfil, Blaenau Gwent and Newport to test new ways of supporting people to clear their Council Tax arrears in partnership with credit unions.

The �ʶ�����has also focussed tirelessly on awareness campaigns urging people to claim the support they’re entitled to, and we have continued to support the provision of free, quality assured advice services through our Single Advice Fund. 

In April each year, councils issue households with a Council Tax bill, this is sometimes called a Council Tax demand notice. The Council Tax bill sets out:

• how much a household must pay for the year
• how that amount has been calculated
• the dates on which payments are due

The bill is usually divided into 10 or 12 monthly payments, or it can be paid in one lump sum at the start of the year. 

Ways to pay

Households can usually pay Council Tax online or by direct debit. Households can also use ‘Paypoint,’ ‘Payzone’ or ‘Quickcards’ for cash payments at post offices, banks, newsagents, and convenience stores. The Council Tax bill provides details of other payment methods available.

If you miss a Council Tax payment

As much as possible, households must plan and prioritise budgets as best they can to pay their Council Tax because it is a tax obligation. . But households can fall behind with Council Tax payments for many reasons, if they are on a low income, they may have difficulties managing money and budgeting to meet the cost of living. A sudden or temporary change in a household’s circumstances such as becoming unemployed or an illness may also cause payment difficulties. 

The council can take action to recover any debts owed if a household falls behind with their payments.

Households should contact their council as soon as possible if they have any difficulties paying their Council Tax bill, and ideally before missing a payment. Councils want to help and can provide advice and support tailored to a household’s circumstances. This could include:

• checking if the household is entitled to a Council Tax reduction, discount or exemption
• changing the payment date if this would make keeping up with payments easier,
• switching to 12 instead of 10 payments per year
• offering an alternative payment plan, which can include planning over a timeframe longer than one financial year, subject to next year’s tax bill
• directing the household to check if they are entitled to any benefits, signposting to the council’s in‑house money advice team, or to other advice agencies like Citizens Advice for help

Current process for issuing a reminder notice

Councils can use various methods like texts, emails, or calls to remind households that they have missed a payment before sending a formal reminder notice. A reminder notice is sent either by letter to the address or sometimes by email if the household is signed up for e-billing.

If a payment is missed, the council sends a reminder notice. The law currently states that the household then has 7 days to pay the missed amount before losing the right to pay in instalments. If they pay within 7 days, they can continue paying their annual balance in instalments.

If they do not pay within 7 days, the law currently states that they must pay all the Council Tax owed for the year (the remaining annual balance) after another 7 days. If this full amount is not paid, the council can issue a court summons letter and apply to a court to recover the outstanding Council Tax plus any fees and court costs. If the balance is not paid before the court date, the council can ask the court for a liability order which enables the council to move into recovery action. 

In addition, the law also states that councils only need to send reminder notices for the first two missed payments in a financial year (April 1 to March 31). If a household misses a third payment, they must pay the remaining annual balance within 1 day.

Current process for issuing a final notice

Councils do not have to send a final notice if they have already sent a reminder for a missed payment, and it has not been paid. A final notice, asks for the amount owed to be paid within 7 days.

If the amount owed is not paid  the council can issue a summons and apply to a court to recover the outstanding Council Tax plus any fees and court costs. If the balance is not paid before the court date, the council can ask the court for a liability order.

Many councils in Wales send final notices for Council Tax and we consider this to be a positive approach, because it helps ensure clear communication between councils and households. It fits with what households would usually expect after a reminder notice has been issued, as final notices are a standard feature of managing other household bills. While Council Tax is a tax liability not a household bill (and this difference is important), final notices provide a clear and fair warning before further action is taken. Clearer steps can help councils support households to stay on top of their obligations while maintaining trust and accountability.

What is a liability order?

If a taxpayer does not pay the amount of Council Tax they owe after receiving a reminder or final notice, the council can issue a summons notice for the remaining annual balance. The summons notice will state how much Council Tax is owed and the added costs (up to a maximum of £70 in Wales) and will request the taxpayer to attend the magistrates’ court on a specified date.

A taxpayer does not have to attend the magistrates’ court, but if no payment is made before or on the hearing date, the council will ask the court to issue a liability order. This document allows the council to take enforcement action to recover the money owed.

Once a liability order has been issued to the council, the taxpayer can still pay the full amount or agree on a repayment plan with the council. The liability order enables the council to use various recovery methods, such as:

• sending enforcement agents (bailiffs) to take items from the property
• arranging for the taxpayer’s employer to deduct a fixed percentage from their pay (attachment of earnings)
• arranging for the Department for Work and Pensions to deduct money from benefit payments
• securing the debt against the property (Charging Order)
• applying to have the taxpayer declared bankrupt if they owe more than £5,000

The current process allows taxpayers 7 days after receiving a reminder notice to seek advice and engage with their council if they are having difficulty paying. If the taxpayer does not engage with the council within this period, they can become liable for the outstanding annual balance within a further 7 days.

The Council Tax Protocol for Wales (“the Protocol”) was launched in 2019 and all councils in Wales have committed to following the standards it sets out. This was a major step in changing Council Tax enforcement encouraging councils, enforcement agencies, and advice agencies to work closely together. It provides guidelines for strengthening these partnerships.

A key requirement of the Protocol is that councils offer effective support to households in managing their Council Tax and provide help if they fall into debt. The goal is to prevent debt problems from getting worse by encouraging early engagement and ensuring that any action taken is fair and consistent.

In November 2023, all council leaders in Wales committed to using only accredited firms to collect Council Tax, making Wales the first nation in the UK to do so. This ensures that enforcement agencies and their bailiffs follow the standards set by the Enforcement Conduct Board.

Council Tax arrears are a common debt issue for households in Wales, often alongside other debts, leading to serious financial problems. Falling behind on Council Tax can result in a court summons, liability order, or visits from enforcement agents. Research shows that the Council Tax collection framework can make it hard for households to escape debt because it escalates to a larger amount relatively quickly, often prolonging the problem. The impact of debt on individuals and families can be negative and long-lasting. 

Research from a range of organisations including , , the , the , and others, estimates:

• that across England and Wales, proportionately more people who seek advice for Council Tax debt are women, single parents, renters, people living with mental health conditions, and households living on a negative budget
• many households falling behind with Council Tax payments are also in debt with other bills, such as energy bills and housing costs
• the reasons why people fall into debt can be complex and multifaceted
• that there are examples of excellent practice within councils to build upon, including clear local policies and procedures for helping vulnerable people

There are also calls to align the Council Tax collection framework with features of consumer credit, personal finance or utilities, and in particular to remove the annual balance for Council Tax becoming due at some point in the financial year. We have considered how tax systems differ from finance and utilities.

Council Tax becomes liable from the start of each financial year with taxpayers opting-in to paying by instalment to clear the account by the end of the financial year, so that councils can afford to run services. Councils must balance a budget (income and expenditure) within the same financial year and these features are set out in primary legislation, the Local Government Finance Act 1992. Financial institutions and utility companies are not restricted by these characteristics or fixed periods.

The alternatives to removing the annual liability for Council Tax being due at some point in the collection process would mean that under current legislation, each council would need to calculate the amount owed on a daily basis and decide when to apply for a liability order to recover the amount up to that day. This leaves recovery of the rest of the year ambiguous, or in practice enforcement action could not begin until after the end of the financial year. This potentially results in no consistency or structure to the enforcement framework at all and introduces instability to council finances. Alternatively, we considered whether each of the 10 or 12 instalments should be enforced individually, but this would add significant additional administration to the system and add up to £70 court costs to the taxpayer each time, worsening their arrears position. We do not consider these options as beneficial improvements to Council Tax collection. 

Reprofiling instalments for the rest of the year when a payment is missed is a tool councils already have to help people get back on track before moving into enforcement action and we consider this to be good practice, which is discussed further in this consultation.

We propose changing the law to create a fairer, transparent and more effective enforcement process for unpaid Council Tax and providing guidance to help councils collect Council Tax debt more fairly and sustainably. Focussing on clearer steps, earlier intervention and encouraging people to reach out for help before they miss payments.

We have balanced the proposed changes to the framework with operational complexity and minimising the risk of tax avoidance. We have ensured the proposals in this consultation fit the characteristics of tax systems, which are distinctly different to frameworks for consumer credit or personal finance. Taxes are liable at the start of a financial year, and need to be collected within fixed periods to ensure councils can run essential services like schools and social care. 

Further to this consultation, we are interested in working with partners, advice services and local councils to test new ideas or ways of working. For some ideas, it is important we fully test the effects at smaller scale before making decisions, to ensure beneficial outcomes can be demonstrated which minimise the risk of unintended consequences to the stability of the local tax system. 

Proposed change for reminder notices

Councils can use various methods like texts, emails, or calls to remind households that a payment has been missed before sending a formal reminder notice. We want this to continue.

We propose that councils should always send a reminder notice when a Council Tax instalment is missed. The timing of the reminder notice will be up to the council.

The reminder notice should provide details of the amount that is owed on the day it is issued. It will not specify a deadline for payment, allowing councils to send multiple reminder notices which provide advice on how to pay or encourage households to contact the council for help or arrange alternative payment plans.

Additionally, if a payment is missed for a third time in a financial year, it should be treated the same as the first and second missed payments, and the household will always receive a reminder notice.

Proposed change for final notices

To ensure fairness, households should always receive a final notice and have enough time to engage before the council can apply to a court for a liability order. Sending final notices is considered good practice that adds consistency and transparency to the process, as people often expect this kind of notice, given it's a standard step in managing many types of household bills.

We propose that councils must issue a final notice, but only after sending at least one reminder notice. The final notice should not be sent less than 14 days after the last reminder notice to give households enough time to pay or contact the council to make alternative payment arrangements. 

We propose that a final notice should not be issued less than 41 days after the missed payment. It will inform the household that they have 21 days to pay the outstanding amount. If not paid, the unpaid annual balance will be due the day after this period ends.

Councils can apply to a court for a liability order one day after the unpaid annual balance becomes due. This approach prevents a council applying for multiple liability orders for each missed instalment, reducing costs for households and administrative work for councils.

This period allows households to seek help and engage with their council, balancing debtor protection and Council Tax collection. During this time, councils should engage with households to offer alternative payment plans, check for eligibility for reductions or discounts, and direct them to advice agencies. More information on this is set out later in this consultation.

The proposed measures for reminder and final notices will give households at least 63 days from the date a payment is missed to when the council can apply for a liability order for the unpaid annual balance. This means a household could miss three instalments before the council can take action to recover the debt if the household has not engaged with the council. The timeframe broadly aligns with the 60-day .

Proposed best practice guidance for the administration and collection of Council Tax 

Effective engagement between councils and households is key to the fair recovery of unpaid Council Tax. We want to encourage people to come forward and engage with their council at the earliest sign they may struggle to pay. Earlier intervention, especially before a missed payment, means there are more actions available that councils can take to help.

Councils in Wales already use the Council Tax Protocol as a guide to support struggling households. This protocol strengthens partnerships between councils and enforcement agents and provides guidelines for supporting vulnerable households. As the Protocol is a multi-agency political agreement, it is not appropriate for it to be a statutory requirement.

The �ʶ�����proposes introducing best practice guidance alongside the Protocol to ensure a fair and consistent approach to collecting Council Tax across Wales. This will help councils collect taxes reasonably, consider engagement and offer alternative payment plans or other assistance to those struggling to pay. We envisage the guidance will include:

• Advice on engaging with households when an instalment has been missed, when and how to signpost to broader debt advice.
• Clear next steps set out in reminders and final notices.
• When to check eligibility for the Council Tax Reduction Scheme, discounts and disregards, and what tools or data to use.
• Best practice for offering and agreeing to reprofile payments, or alternative payment plans, and any other payment help including changing payment dates, moving to 12 monthly instalments.
• Making clear that councils can have the confidence to offer payment plans which extend past the end of the financial year on a case-by-case basis, and a recognition that allowing some people to repay what they owe in manageable chunks may be more favourable than continuing to enforce the whole amount.
• Highlighting best practice examples that have led to positive outcomes.
• Information to explain legislative changes.

We also acknowledge the success of some of these actions is dependent on taxpayer’s own engagement and circumstances.

The �ʶ�����will work with councils to design and develop this guidance in more detail, and it will operate under section 60 of the Government of Wales Act 2006. As the guidance will be coproduced, we do not envisage it will significantly increase the administrative burden on councils overall or undermine the legislative framework. The idea is that resource shifted to preventative actions earlier in the collection process would lead to resource and cost savings of the more expensive types of recovery action later in the process. The goal is to embed best practices to support households struggling to pay their Council Tax, and these can be added to over time.

Following the outcome of this consultation, the legislative process will include a detailed Regulatory Impact Assessment of the costs and benefits.

Question 1

Please specify if you are responding as a member of the public or on behalf or an organisation. 

Question 2

Which council area do you live in? 

Question 3a

Has there ever been a time when you have had difficulty paying Council Tax or fallen behind with your Council Tax payments?

Question 3b

If you answered yes to question 3a.Your local council or Citizens Advice can provide information and advice if you have difficulty paying or have fallen behind with your Council Tax payments. Did you seek help or advice?

Question 4

The �ʶ�����proposes that councils should always issue at least one reminder notice to households each time a Council Tax instalment is missed.

Do you agree with this proposal?

Question 5

The �ʶ�����proposes that councils should always issue a final notice for a missed instalment if the household does not pay after receiving at least one reminder notice. We propose the final notice can only be issued 41 days after the instalment was missed and more than 14 days since the last reminder notice was issued. 

Do you agree with this proposal?

Question 6

It is always best for households to keep up with their regular Council Tax instalments to avoid falling into debt, and to contact their council as early as possible, ideally before missing an instalment. However, when an instalment is missed, currently households can become liable for the annual balance of Council Tax if they haven’t paid within 7 days, and this is set out in law. 

To provide more time for households to recover from missing an instalment and get back on track, the �ʶ�����proposes that households should not become liable to pay the remaining annual balance after missing an instalment until 62 days have passed. This includes ensuring 21 days have passed since a final notice has been issued. 

Do you agree with this proposal?

Question 7

The �ʶ�����proposes that councils can apply to a court for a liability order one day after the remaining annual balance has become due, and the household has not made a payment or contacted the council to arrange an alternative payment plan. In total, this will be a minimum of 63 days after missing the first instalment.

Do you agree with this proposal?

Question 8a

The �ʶ�����wants to ensure that households having difficulty paying their Council Tax bill have reasonable time to contact the council and seek help. We propose that 63 days is a reasonable period, which provides further time for receiving wages or benefit payments, contact the council and contact a range of other advice agencies.

What is your level of agreement with the proposal?

Question 8b

Please explain your reasons for your rating for Question 8a.

Question 9

All councils in Wales endorse the Council Tax Protocol which outlines best practice and guidance around how to deal with vulnerable customers.

In addition to the Council Tax Protocol for Wales, the �ʶ�����proposes producing best practice guidance for councils to ensure a fair and consistent approach to collecting Council Tax across Wales. Suggestions about what may be included in the guidance are outlined in this consultation.

Do you agree with this proposal?

Question 10

Do you have any other comments on the proposals?

Question 11

What, in your opinion, would be the likely effects of the proposals on the �ʶ����� language? We are particularly interested in any likely effects on opportunities to use the �ʶ����� language and on not treating the �ʶ����� language less favourably than English. 

• Do you think that there are opportunities to promote any positive effects?
• Do you think that there are opportunities to mitigate any adverse effects?

Question 12

In your opinion how could the proposals be formulated or changed so as to:

• have positive effects or more positive effects on using the �ʶ����� language and on not treating the �ʶ����� language less favourably than English; or
• mitigate any negative effects on using the �ʶ����� language and on treating the �ʶ����� language no less favourably than English.

The consultation is open for a 12‑week period until 23 July 2025. Consultation responses help the �ʶ�����to clarify policy proposals and inform amendments to the legal framework.

Submit your comments by 23 July 2025, in any of the following ways:

• complete our online form
• download, complete our response form and email CTandNDR.Consultations@gov.wales
• download, complete our response form and post to:

Council Tax Policy
�ʶ����� Government
Cathays Park
Cardiff
CF10 3NQ

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Responses to consultations are likely to be made public, on the internet or in a report. If you would prefer your response to remain anonymous, please tell us.

For further details about the information the �ʶ�����holds and its use, or if you want to exercise your rights under the UK GDPR, please contact:

Data Protection Officer

Data Protection Officer
�ʶ����� Government
Cathays Park
Cardiff
CF10 3NQ

Email: Data.ProtectionOfficer@gov.wales 

Information Commissioner’s Office

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
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Telephone: 01625 545 745 or 0303 123 1113

Website: 

UK General Data Protection Regulation (GDPR)

The �ʶ�����will be data controller for any personal data you provide as part of your response to the consultation. The �ʶ����� Ministers have statutory powers they will rely on to process this personal data which will enable them to make informed decisions about how they exercise their public functions. Any response you send us will be seen in full by �ʶ�����staff dealing with the issues which this consultation is about or planning future consultations. Where the �ʶ�����undertakes further analysis of consultation responses, this work may be commissioned to be carried out by an accredited third party (e.g. a research organisation or a consultancy company). Any such work will only be undertaken under contract. The �ʶ����� Government’s standard terms and conditions for such contracts set out strict requirements for the processing and safekeeping of personal data.

In order to show that the consultation was carried out properly, the �ʶ�����intends to publish a summary of the responses to this document. We may also publish responses in full. Normally, the name and address (or part of the address) of the person or organisation who sent the response are published with the response. If you do not want your name or address published, please tell us this in writing when you send your response. We will then redact them before publishing.

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Number: WG51763

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