The Ministry of Housing, Communities and Local Government (MHCLG) announced on 12 October 2026 that councils in England will have to follow new steps before withdrawing a household's right to pay council tax in instalments1. The changes take effect from April 20271.
Under the current system, councils only have to send one reminder and can then demand the remaining year's payment in full1. From April next year, councils will have to send a reminder and then a final notice before someone who may have missed a payment loses the option to pay in instalments1. The final notice must be sent at least 14 days after the reminder and at least 41 days after the first missed payment, and people will then have another 21 days before losing the option to pay in instalments1.
MHCLG said the government will also work with councils and debt support organisations to develop guidance and an optional template letter to make information easier to understand and more consistent1.
"New government rules will give people more time to get help with council tax debt, in a shake up that will support people before they face enforcement action."
The announcement sets out two further changes already announced, with later start dates1:
| Change | Takes effect | Detail |
|---|---|---|
| At least 63 days before losing instalment option | April 2027 | Households will have at least 63 days before they lose the option to pay in instalments1 |
| Bills spread over 12 months | April 2028 | Council tax bills will be spread over 12 months by default instead of 101 |
MHCLG said that currently in England, if a monthly payment is missed, councils can within just three weeks demand payment for an entire year1. It also said councils will have clear steps to follow and should work with people before taking action to recover unpaid council tax1.
Why it matters for households
The rules apply to council tax billing in England. From April 2027, a household that misses a payment will be entitled to a reminder and then a final notice before the instalment option is withdrawn, with the final notice at least 41 days after the first missed payment and a further 21 days before instalments are lost1. MHCLG states this amounts to at least 63 days before the instalment option ends1. Under the current rules, one reminder is enough before a council can demand the rest of the year's bill1.
For households already behind on council tax, the practical effect is a longer period in which the instalment arrangement remains in place, and a second written notice before it is removed. The separate change to 12 monthly payments by default from April 2028 would reduce the size of each monthly instalment compared with a 10 payment schedule, though the annual bill is unchanged1. MHCLG has not reported the effect of these changes on the total amount payable, on council tax rates, or on enforcement action already under way.
What happens next
The new reminder and final notice requirements take effect from April 20271. The 63 day minimum period before losing the instalment option also starts in April 20271. The default 12 month payment spread begins in April 20281. MHCLG said it will work with councils and debt support organisations on guidance and an optional template letter, but no date for that guidance has been reported1. More details are published in the government's council tax information letter 5/2026 response to the technical consultation on council tax enforcement1.
Households dealing with unpaid council tax can read the site's guide to council tax arrears and the wider debt section.
Sources1 cited
- More time and clearer warnings before council tax action 🏠⏰ - MHCLG in the Media mhclgmedia.blog.gov.uk
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