Millions of households across the UK are receiving their council tax bills for the 2026/2027 financial year, with many facing significant increases. According to BBC Morning Live consumer expert Holly Hamilton, the average Band D bill in England now stands at £2,392, an increase of £111 compared to the previous year. Speaking on the programme, Hamilton noted that most rises in England are capped at just under 5%, while some areas in Scotland have seen hikes of up to 10%. In Wales, increases are similar to England, and Northern Ireland, which uses domestic rates instead of council tax, is also experiencing higher bills.
Changes to Payment Rules
Hamilton highlighted upcoming changes to help those who fall behind on payments. Currently, missing a single monthly payment can result in councils demanding the full year’s amount upfront within a few weeks. Under new plans, residents will have 63 days to catch up, and councils will be encouraged to offer longer repayment plans. Additionally, liability order costs will be capped, and the default payment schedule will shift from 10 months to 12 months, making monthly payments more manageable.
However, Hamilton cautioned that these changes are not immediate and are expected to come into effect next year in England. Wales is also considering similar measures, while Scotland and Northern Ireland have no plans yet.
Who Can Get Reduced Bills?
Hamilton identified four groups eligible for council tax discounts:
- Single occupants: Those living alone are entitled to a 25% discount.
- Students: Full-time students are generally exempt from council tax.
- Disabled residents: If you or someone you live with has a disability, you may qualify for a lower band.
- Vacant properties: Reductions apply if the property is empty due to the occupant being in hospital long-term, a care home, or prison.
She advised checking with local authorities for specific eligibility criteria.
Additional Support
Hamilton also mentioned Council Tax Support (or Council Tax Reduction) for those on lower incomes. This benefit is not automatic and must be applied for through the local council. In England, each council runs its own scheme, while Wales and Scotland have more nationalised systems. Northern Ireland incorporates support into its rate system. Applying for this support also alerts councils to financial difficulties, potentially leading to further assistance such as extended payment plans.
Hamilton encouraged viewers not to assume their bill is fixed, stating: “There’s a decent chance that there’s help available to you. If you just go looking for it, just ask the question.”
