At present, council tax bills are normally spread over ten months every year – but a new shake-up wants to make 12 months the default
Council tax bills will be spread out over 12 months by default under Government proposals that are currently being discussed.
It means you would pay less each month, although your overall council tax bill for the year would remain the same. At present, council tax bills are normally spread over ten months from April to January every year.
This is because when you pay in ten instalments, you don’t pay a council tax bill in February and March. You can request your payments be split over 12 months but the proposals, which were first announced in June, want to make this the default.
The average band D household would pay approximately £38 less each month if they paid over 12 months, according to figures from the the Ministry of Housing, Communities and Local Government. The average council tax bill for a band D property is currently £2,280.
You will still be able to request to pay your council tax bill over ten months if you want to. The consultation is also proposing slowing down the debt collection process for when someone has missed a council tax payment.
If you miss just one council tax payment, you can be asked to pay the rest of your yearly bill upfront. Councils can then send in bailiffs if you continue to not pay, which results in added legal costs being added to your bill.
The consultation is looking at capping additional costs and ensuring households are given information about what help they could be entitled to, if they are struggling to pay.
It will also become easier to challenge your council tax band, if you believe you may be paying too much. There are also proposals to change the name of the “severe mental impairment” discount to “significant cognitive impairment” discount.
The consultation on these changes to the council tax system is due to end on September 12, with any changes set to be confirmed in autumn.
Minister for Local Government and English Devolution, Jim McMahon OBE said: “As part of our Plan for Change, we’re putting working people first.
“We are listening and taking action to make council tax fairer, more transparent and easier to manage. Under our plans, local government will be there to support, and not to punish, people who fall behind.”
Cut your council tax bill
Check if you’re eligible for some sort of council tax discount. For example, your bill is reduced by 25% if you live alone, or if you are classed as severely mentally impaired, or you claim benefits, you may be entitled to 100% off your bill.
If you’re in too high of a council tax band, you may be able to challenge this and get thousands of pounds back, plus lower bills going forward. But do your research first, as if you’re in too low of a council tax band, your future bills will go up.
