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Major change announced to council tax rules in Wales

Families struggling with council tax will soon have more time to make payments before facing enforcement action, the Welsh Government has announced.

Under the current system, households who miss a council tax instalment are liable for the full annual bill if they do not pay within seven days of receiving a reminder. From next April, however, new rules will extend this period significantly, giving residents 63 days to settle missed payments before councils can take enforcement action.

The Welsh Government says the change is aimed at providing families with crucial breathing space to access support, while insisting that those deliberately avoiding payment will still be pursued.

A consultation conducted by the Welsh Government sought public opinion on the proposed changes, attracting 250 responses. Officials report that a “significant majority” supported extending the minimum period to 62 days following a missed instalment.

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.”

Council tax rates in Wales are set individually by each of the country’s 22 local authorities. Arrears have risen sharply in recent years, more than tripling over the past decade and now exceeding £160 million.

When payments are missed, householders fall into arrears, creating financial stress while leaving councils out of pocket. Funds from council tax support a wide range of services, including adult social care, kerbside waste collection, and the maintenance of parks.

At the close of the 2014-15 financial year, arrears across Wales stood at £47.9 million. By the end of 2024-25, they had surged to £160.2 million, according to Welsh Government figures.

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