TL;DR: Too long, Didn’t read
The Warning: Council Tax is a “Priority Debt.” This means the council has powers that banks don’t—including taking money directly from your wages or sending bailiffs.
The Myth: “I’ll just pay it next month.” No. If you miss one payment, they can demand the entire year’s bill immediately.
The Help: You might be overpaying. Check if you qualify for the Single Person Discount (25%) or Council Tax Support if you are on a low income.
The SMI Rule: If someone in the house has a “Severe Mental Impairment” (like dementia), they should be disregarded for Council Tax.
On this page...
It’s January. You are broke. You have a pile of bills on the table: Credit Card, Energy, and Council Tax. You decide to pay the Credit Card because the bank calls you every day, and you ignore the Council Tax. You just made a dangerous mistake.
In the eyes of the law, Council Tax is a “Priority Debt.” The consequences of not paying it are faster and more severe than almost any other bill. Here is why you must deal with it first, and how to lower the bill if you are struggling.
What Happens If I Don’t Pay? (The Timeline)
The council doesn’t mess around. Here is the standard timeline if you ignore them:
Reminder Notice: You get this 7 days after missing a payment. You have 7 days to pay.
Final Notice: If you don’t pay (or miss another one), you lose the right to pay in instalments. They demand the entire year’s bill upfront immediately.
Liability Order: They take you to court (Magistrates Court). They add court costs (usually £80-£100) to your debt.
Enforcement: Once they have the order, they can:
Deduct money directly from your wages or benefits.
Send Bailiffs (Enforcement Agents) to your door.
(In rare, extreme cases) Send you to prison for up to 3 months.
Check Your Discounts (Are You Overpaying?)
Before you panic about how to pay, check what you are paying. Millions of pounds in discounts go unclaimed every year.
1. Single Person Discount (25% Off) If you are the only adult (over 18) living in the property, you get 25% off the bill legally.
Action: Apply on your local council’s website. It takes 2 minutes.
2. Council Tax Support (Reduction) If you are on a low income or claim benefits (like Universal Credit), you could get up to 100% off your bill.
Note: Each council has its own rules for this, so you must apply directly to them.
3. The “SMI” Disregard (The Hidden Discount) This is often missed. If someone in your house is “Severely Mentally Impaired” (e.g., has Dementia, Alzheimer’s, or severe learning difficulties) AND claims a qualifying benefit (like PIP or Attendance Allowance), they are disregarded for Council Tax purposes.
Scenario: Two adults live together. One has SMI. The council treats the house as having only one adult. You get the 25% discount.
3 Ways to Stop the Council (Immediate Action)
If you receive a Reminder Notice:
Contact the Council immediately. Do not hide.
Offer a payment plan. Say: “I cannot afford the full instalment, but I can pay £X per week.”
Ask for “Breathing Space.” This is a government scheme that freezes interest and enforcement action for 60 days while you get debt advice.
A Quick Story: Meet James
The Mistake: James lost his job in November. He stopped paying his £150 Council Tax to save cash for Christmas. He ignored the “Reminder” letter.
The Shock: In January, the council cancelled his instalments and demanded the full remaining year’s balance (£600) plus court costs.
The Fix: James went to Citizens Advice. They helped him apply for Council Tax Support (backdated) because he had no income.
The Outcome: His bill was reduced significantly, and the council agreed to a small weekly payment plan for the arrears. He avoided the bailiffs.
Summary: Act Now
Prioritize this bill above credit cards.
Check for discounts (Single Person, SMI).
Call them if you can’t pay.
Frequently Asked Questions
Can I go to prison for not paying?
Technically, yes, but it is a “last resort.” It only happens if you refuse to pay when you have the money (Culpable Neglect) or wilfully refuse. If you genuinely cannot afford it, you will not go to prison, but the bailiffs will still come.
Do students have to pay?
No. A house entirely occupied by full-time students is exempt from Council Tax. You pay £0. If one non-student lives there, the property becomes liable (but you get a 25% discount).
Does this affect my Credit Score?
Surprisingly, no. Local Councils do not typically report missed payments to credit reference agencies (Experian/Equifax). However, if they obtain a Liability Order, it is a court record, and bailiff action can severely impact your financial life.
(Sources: Gov.uk – Council Tax Arrears, Citizens Advice – Council Tax)
Rules regarding Council Tax Support vary by local authority. Always check with your specific council.