Share your views about proposed changes to council tax

The Government recently opened a consultation on the administration of council tax in England, which hasn’t been updated in decades. At this stage, they are only setting out proposals for changes to billing and how payments are collected and enforced – this is not about fundamental reform of the system as a whole.

The proposals in the consultation are intended to “modernise the administration of council tax to deliver a fairer and more efficient system for taxpayers and local government”. Some of the key elements should also help household finances, which is good for everyone’s cash flow - including landlords, as it reduces the risk of tenants’ rent becoming unaffordable.

The consultation is open to everyone to contribute their views by completing the online survey via Citizen Space.

Here are the top three proposals that could help residents in England with their council tax bill:

1. Changing the default billing from 10 to 12 months. 

Currently, the annual charge is paid in 10 instalments – May to February, with no payment due in March and April. The proposed change is intended to help households manage their finances by spreading the cost over the whole year and therefore reducing the regular monthly outgoing. Households will still have the option of paying over 10 months if they prefer.

The average council tax for a Band D property (considered a typical family home) for 2025/6 is £2,280. Over 10 months, that’s £228 a month, which would reduce to £190 a month spread over a whole year and bring the regular monthly payment down by £38.

2. Modernising “disregards”. 

This is a category of adults that are disregarded for the purposes of calculating household council tax. It currently includes people who are entitled to certain disability benefits and live-in carers. This mean that if one or more people living in the property are disregarded, the council tax bill could be discounted.

Council tax assumes at least two adults living in a home and if there is only one, they receive a 25% discount. Under the disregard system, if there are two people in the property but one is disregarded, the council views there as only being one occupant liable for the tax, so the 25% discount applies. If all occupants are disregarded, a 50% discount applies.

The consultation proposes reviewing and updating the criteria to make sure disregards continue supporting those they were intended to support. In particular, the “severe mental impairment” class is likely to be amended to encourage more eligible people to make use of it. This has already happened in Wales, where it has been renamed “significant cognitive impairment”, defined as “a severe (and permanent) mental condition or neurological change that impacts on the brain’s ability to function and has a significant impact on an individual’s daily life”. The proposal is to make the same change for England.

3. Making it easier to challenge bandings. 

The Government recognises that some households might be in the wrong band and paying more council tax than they should. Currently, there isn’t a straightforward way to check and challenge this, so the consultation is seeking views on what might be done to remove barriers for people.

As well as helping all residents with ongoing household costs, if homeowners and investors are able to challenge their property’s banding and it is subsequently reduced, that could make the property more appealing when they come to sell.

The consultation runs until 12^th September, after which the feedback will be analysed before any changes are formally proposed in parliament. But, while nothing is likely to take effect until next year at the earliest, it’s good to know that having been unchanged for a long time, the council tax system is at least being reviewed.

You can read the full consultation on the GOV.UK website and submit your views by completing the online survey via Citizen Space.