Big Council Tax rises take effect in England

Council Tax bills in England rise from Wednesday 1 April 2026, with what the Resolution Foundation calls a "near-universal rise" averaging £111 more than last year for Band D homes in England¹. The think tank set out the figure in a 27 March 2026 commentary on housing and household finances¹.

The same commentary notes that April also brings falls in energy bills, worth £135 to a typical household¹. On the distribution of the tax, it says the lowest-income families spend nearly 5 per cent of their income on Council Tax, compared with just 1.5 per cent for the richest households¹.

The commentary also sets out the funding position behind the rises. It says cuts to central government grants since 2010 mean councils' spending power remains 8.2 per cent lower in real terms since then, even as pressures from adult social care and SEND have risen¹. It adds that increased central funding and higher Council Tax push core council funding up by 5.8 per cent this year¹. On public sentiment, it cites polling showing just 56 per cent of residents are satisfied with how their council runs things¹.

The commentary discusses options for funding local government, including replacing Council Tax with a tax tied to current property values, raising rates on higher bands, and full proportionality with annual revaluations¹. It does not report any government decision to change the system.

Why it matters for households

The rise applies to Band D homes in England from 1 April 2026, and the Resolution Foundation describes it as near-universal, so most households in England face higher bills¹. The amount a household pays depends on its band; the £111 figure is an average for Band D¹. Because the tax is not tied to income, the commentary states that the lowest-income families spend nearly 5 per cent of their income on it, against 1.5 per cent for the richest households¹. Households also see energy bills fall by £135 for a typical household in the same month¹. The commentary notes that councils' spending power remains 8.2 per cent lower in real terms than in 2010, and that core council funding rises 5.8 per cent this year¹. It does not report how individual councils have set their own rates, or which authorities have applied for exceptional increases.

What happens next

The rises take effect on Wednesday 1 April 2026¹. The commentary also refers to the National Housing Bank launching on the same day, described as a new route to boost housing supply¹. It does not report any further scheduled announcements on Council Tax or local government funding.