Government launches consultation on council tax billing and collection in England

The government launched a consultation on council tax billing and collection in England on 20 June 2025. It runs for 12 weeks, and responses "will be used to inform potential policy changes in the future"¹. The suggested changes apply only to England, and there are currently no plans for a shake-up in Wales or Scotland, which have devolved powers to set their own council tax rules; Northern Ireland uses a separate system called domestic rates, based on a property's capital value¹.

The consultation outlines plans to increase the number of instalments to 12 by default. For most households in England, council tax is currently paid in 10 instalments from April to January¹. Under the proposals, households could still opt to pay in 10 instalments if they request this by 15 April of the relevant year¹. The average band D council tax bill in 2025-26 is £2,171, which works out at £217 a month over 10 instalments or £181 over 12¹.

On enforcement, the consultation document says taxpayers who missed a monthly payment are "highly unlikely" to be in a position to pay the entire outstanding amount in a single payment, and that "aggressive recovery action" has sometimes been applied "too quickly and too intensely"¹. The government is also proposing to increase the time before councils can take someone to court to settle debts¹. Under current rules, missing one instalment brings a reminder to pay within seven days; failing that, the household is asked to pay the full year's bill. There are two reminders in a financial year before a final notice, after which a council may request a liability order from the court, which can include sending bailiffs to seize and sell belongings. A household could face time in prison if the council takes further legal action¹.

On bands, households in England and Wales can ask the Valuation Office Agency for a review. From April 2026, the VOA will be scrapped and its duties taken over by HM Revenue and Customs¹. The government states in the consultation that there is currently no straightforward way for people to check and challenge their council tax band¹. It is also asking whether bills are clear enough, saying many details are too technical¹.

Why it matters for households

The average band D bill in England now tops more than £200 a month¹. Moving to 12 instalments by default would spread the same annual charge over a full year, lowering the monthly amount but removing the two payment-free months that a 10 instalment schedule leaves. Households wanting to keep 10 instalments would need to request this by 15 April of the relevant year¹.

The enforcement proposals concern households that fall behind. The consultation covers the timeframe before a council can demand a full year's bill and before court action, and asks how people can be better supported¹. Any change would follow the consultation rather than take effect immediately.

The band challenge proposals affect anyone who believes their property is in the wrong band, including the transfer of the VOA's duties to HMRC from April 2026¹. A review can also result in a higher band and a larger bill¹. Council tax rates are likely to rise in 2026-27, according to Which?¹. The consultation does not cover Wales, Scotland or Northern Ireland¹.

What happens next

The consultation runs for 12 weeks from its 20 June 2025 launch¹. Responses will inform potential policy changes in the future¹. No implementation dates for the proposals have been reported. Separately, the Valuation Office Agency is due to be scrapped in April 2026, with its duties taken over by HM Revenue and Customs¹.