The government has announced a major consultation on the council tax system in England as part of the biggest review since it was introduced in 1993. The review aims to make the council tax system "fairer, simpler and more supportive" for households by tackling a number of issues from aggressive debt collection practices to improving access to discounts for groups like carers and apprentices. The biggest shake-up is the plan to change the default payment schedule from 10 months to 12 months, likely to help those who prefer to pay a regular, smaller amount every month of the year. The wider consultation also looks at other long-standing issues, including making it easier for people to challenge their council tax banding. Individuals can submit their views by completing an online survey, with the consultation set to last for 12 weeks before closing on 12th September 2025.
Proposals to change how council tax is collected
The majority of the 25 million households currently pay their council tax over 10 months - from April to January - a system which effectively provides a two-month "payment holiday" in February and March. Spreading the same annual bill over 12 months instead of 10 would mean paying a smaller amount each month, without any payment breaks. For an average 'Band D' household, this could lower the monthly payment by around £38, which could help those who struggle with the larger payments on a 10-month payment cycle. It's important to remember that this does not result in a cut in your total bill, it simply means you pay a smaller amount over a longer period. Those who prefer to pay over 10 months do not need to worry, however, as the proposals make it clear that you'll still have the right to choose the 10-month option.
Switch your council tax to a 12-month payment cycle
Councils across England already allow you to spread your council tax bill over 12 months, so you don't have to wait for these changes to become law. Additionally, most councils allow you to pay your council tax as a one-off payment or even quarterly or half-yearly if preferred. While every council is different, the process is usually very straightforward. Below, we've provided some simple steps you can follow to make the change.
- Find your local council’s website by entering your postcode on the GOV.uk website
- Search for "Pay Council Tax" or "Direct Debit"
- You should be directed to an online form or contact details to request the change. You’ll likely need your council tax account number, which is on your bill.
Making this simple switch can help smooth out the payments and give your monthly budget some much-needed breathing room. For further help with managing your money, check out our free Budget Planner.
Summary
The proposed changes could provide a welcome step towards a fairer, more modern council tax system and the consultation acknowledges that the current methods, particularly around debt collection, are outdated and can push vulnerable people further into hardship. If you're worried about falling behind, then our article 'Council Tax explained (and what to do if you are struggling to pay your bill)' provides more information on the support that is available. Also, if you are struggling with debt, then check out our article 'Where to get free debt advice'.
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