Council tax enforcement rules in England will change from April 2027, giving households more time to bring missed payments up to date before they can lose the right to pay by instalments. The Ministry of Housing, Communities and Local Government confirmed the timetable on 12 October following its technical consultation on council tax enforcement. Councils will have to issue both a reminder and a final notice before moving an account out of instalments, with new minimum periods governing when those notices can be sent.
The government has also clarified how its separate move towards 12-month council tax billing will work. Newly liable households will not be switched automatically to 12 monthly payments in April 2027. Councils will instead be expected to tell them that they can request a 12-month schedule. Default 12-month billing for all households is still planned from April 2028.
Busy London street scene illustrating households affected by council tax billing and enforcement reforms. Photograph: London Construction Magazine.
What Changes from April 2027?
From April 2027, councils will be required to issue at least one reminder notice and one final notice before a household loses its right to pay council tax by instalments. A final notice cannot be issued earlier than 41 days after the first missed payment. It must also come at least 14 days after the most recent reminder notice. Once the final notice has been issued, the taxpayer will have a further 21 days to bring the account up to date before losing the right to continue paying by instalments. If an account is brought fully up to date during the financial year, the reminder and final-notice process will reset.
| Stage | New requirement |
|---|---|
| Missed payment | Council begins the new pre-enforcement timetable |
| Reminder | At least one reminder must be issued |
| Final notice | No earlier than 41 days after the first missed payment and at least 14 days after the last reminder |
| After final notice | 21 days to bring the account up to date before instalment rights can be lost |
£100 Liability Order Cost Cap Remains Part of the Reforms
The wider council tax collection package also includes a £100 cap on the costs councils can charge when seeking a liability order and an extension of the period before a taxpayer can lose the right to pay by instalments to 63 days from the first missed payment. The government has not removed councils' existing recovery tools. Its stated approach is to create a longer and more consistent opportunity for taxpayers to engage before formal enforcement while retaining powers to recover unpaid council tax. MHCLG will develop further guidance covering collection and enforcement, including an optional template for reminder and final notices.
12-Month Billing Plan Clarified
The October update also changes the practical implementation of the government's earlier plan for newly liable households. The previous policy set out a move towards 12 monthly instalments from April 2027 for newly liable council tax accounts. Following discussions with councils and software suppliers, MHCLG has now said those households will not have to be moved automatically.
Instead, councils must ensure that newly liable households are made aware of their existing right to request 12-month billing from April 2027. The wider change remains scheduled for April 2028, when 12-month billing will become the default for all households in England. Taxpayers will retain the right to request the traditional 10-month schedule if they prefer it.
Key Takeaway: April 2027 changes the enforcement process, but does not automatically move every household onto 12-month council tax payments. The nationwide default switch is planned for April 2028.
Councils Face System and Process Changes
The reforms will require changes to council revenues systems, notice schedules, staff procedures and communications with taxpayers. MHCLG has acknowledged that local authorities need clearer implementation details before they can accurately calculate the additional cost. A further data collection exercise will therefore be carried out to assess the financial impact of the reforms.
The government says councils will be appropriately funded for qualifying new-burdens costs, although the value and allocation of that funding have not yet been confirmed. The Ministry of Justice is separately tightening oversight of council tax enforcement agents. Bodies employing or contracting certificated enforcement agents, including councils operating in-house enforcement teams, will be required to meet Enforcement Conduct Board accreditation requirements.
Frequently Asked Questions
When do the new council tax enforcement rules start?
The reminder and final-notice requirements are due to apply from April 2027 in England.
The reminder and final-notice requirements are due to apply from April 2027 in England.
Will council tax automatically move to 12 monthly payments in April 2027?
No. Newly liable households must be told they can request 12-month billing, but councils will not be required to switch them automatically. Default 12-month billing for all households is planned from April 2028.
No. Newly liable households must be told they can request 12-month billing, but councils will not be required to switch them automatically. Default 12-month billing for all households is planned from April 2028.
Does the reform stop councils taking enforcement action?
No. Councils will retain their recovery powers. The changes introduce additional notice and timing requirements before households can lose the right to pay by instalments.
No. Councils will retain their recovery powers. The changes introduce additional notice and timing requirements before households can lose the right to pay by instalments.
What Happens Next
MHCLG will work with local authorities, software suppliers and representative bodies before implementation. Further guidance, the new-burdens assessment and additional delivery details are still to be published.
Source: MHCLG Council Tax Information Letter 5/2026 and the government response on council tax enforcement, published 12 October 2026.
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