New rules give households more time if they miss council tax payments

Households in Wales will soon be given more breathing space if they fall behind on council tax, under changes announced by the Welsh Government.

From April next year, families who miss a payment will have 63 days to address arrears before enforcement action can begin. The reforms are designed to stop debt escalating too quickly and to give councils longer to engage with residents in difficulty.

At present, legislation means that if someone misses a council tax instalment and does not pay within seven days of receiving a reminder, they can become liable for their entire annual bill in one go.

Sympathetic approach

Ministers say that rule no longer reflects the sympathetic approach most Welsh local authorities already take when supporting households facing financial strain.

The new framework will also introduce clearer rules for reminder and final notices, ensuring greater consistency across Wales.

Welsh Government officials argue the measures will strike a balance between offering struggling families crucial extra time to seek help and enabling councils to continue pursuing those deliberately avoiding payment. Council tax remains a vital source of funding for essential local services such as education, waste collection, and social care.

The changes follow a public consultation which attracted more than 250 responses from local authorities, advice bodies and individuals. A significant majority supported extending the minimum period between a missed instalment and full liability for the annual balance—from seven days to 62 days—as well as other steps to encourage prevention and earlier engagement.

‘Fairer’

Finance Secretary Mark Drakeford said the reforms would make the system “fairer and more supportive” for residents while protecting public finances.

“We’re supporting councils to prevent rapid escalation of council tax debt, by giving more time for households to recover from unexpected setbacks, check eligibility for support, and get back on track,” he said.

“Anyone struggling to pay council tax should contact their council as soon as possible, or use the free advice services available through the Welsh Government’s Claim What’s Yours service.”

Guidance for households and local authorities is expected to be published later this year.