A new 63-day rule is set to be introduced for households in England under a major overhaul of council tax regulations. The Labour Party government will grant individuals additional time and assistance to clear their outstanding council tax debts.
Key Changes to Council Tax Rules
Starting next year, households will have 63 days—approximately two months—to settle their bills. Councils will also be required to collaborate with residents on sustainable repayment arrangements, moving away from aggressive enforcement tactics.
Taryn Lee Johnston, owner of The FCM Group in Lincoln, commented: 'These changes are a step in the right direction, but they don't go far enough. I've seen how this plays out in real life. My son became the sole earner after his partner was diagnosed with a serious illness. They were doing everything they could to stay on top of things when a banking glitch meant one payment didn't go through. The full balance was then taken from his wages, leaving them with nothing for the rest of the month. That kind of pressure is devastating.'
She added: 'Giving people more time to pay and spreading costs across the year will ease some of that strain. The biggest shift will come from how situations are handled, with more understanding, better communication and space for real circumstances to be taken into account. Council staff should be more understanding of those working and genuinely struggling. There's also a bigger conversation around affordability. Many households are already stretched, so even small disruptions can have a huge impact.'
Industry Reactions
Harry Goodliffe, director at HTG Mortgages, remarked: 'This council tax shake-up could be helpful, but it's not a real solution. It is simply an overdue fix to a harsh system. Giving people more time and flexibility should really help ease some of the immediate stress. But in reality, it doesn't tackle the core problem – council tax is still high and continuing to rise despite countless governments' promises to reduce it within their manifesto. This is definitely a step in the right direction, but there are plenty more steps to climb.'
Government Statements
Labour Party Local Government Secretary Steve Reed stated: 'Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month's council tax bill was missed.'
Minister for Local Government Alison McGovern described the current system as 'outdated and confusing.'
