New rules confirmed for fairer council tax collection
Cadarnhau’r rheolau newydd ar gyfer casglu treth gyngor decach
Changes are on the way to help people who are struggling with missed council tax payments. It’ll give local authorities more time to engage with people to prevent debt escalating quickly.
There will also be clearer rules for reminder and final notices.
Part of the change will mean households in Wales will have 63 days to address missed council tax payments before enforcement action can be taken, when new rules come into force next April.
Currently, missing a council tax payment means people can become liable for the full annual bill if they don’t pay within seven days of receiving a reminder under outdated legislation. This rule doesn’t reflect the sympathetic approach councils in Wales already take when supporting households.
These changes will give families crucial extra time to get support while ensuring councils can still act against those deliberately avoiding payment. It will deliver a fairer council tax system while maintaining effective collection of funds for essential public services.
It comes after a Welsh Government consultation, which had more than 250 responses from local authorities, advice organisations and members of the public.
A significant majority of those who took part in the consultation supported extending the minimum period to 62 days from one missed instalment to becoming liable for the remaining annual balance, as well as supporting other changes focussed on prevention and better engagement.
Finance Secretary Mark Drakeford said:
“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. 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.”
Notes to editors
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Notes:
The framework for council tax collection and enforcement is set out in the Council Tax Protocol and the Council Tax (Administration and Enforcement) Regulations 1992.
The consultation proposed lengthening the timeframe between a person missing a council tax payment to becoming liable to pay the full annual balance. Currently this is a minimum of 14 days, made up of 7 days from the issuing of a Reminder Notice and a further 7 days if no payment is made. The consultation proposes lengthening this to a minimum of 62 days, made up of 41 days following the missed payment to receive a Final Notice, and a further 21 days in which to pay. On day 62 if no payment has been made the person will be liable to pay the full amount and one day later the council can proceed with recovery action.
The confirmed changes also include working with councils on clearer communication with taxpayers through reminder notices and final notices, improved signposting to services, and best practice guidance on supporting vulnerable households.
The changes will come into effect on 1 April 2026. These improvements contribute to the delivery of the Welsh Government’s Programme for Government commitment to a fairer council tax.