New Council Tax rules for people in Scotland who miss a single monthly payment

Daily Record

15-05-2025

Some councils can now seize benefits and take other actions to recover the owed payments.
The UK Government has announced a consultation on the Council Tax debt collection process in England following calls from consumer champion Martin Lewis and the Money and Mental Health Policy Institute charity, which he founded.
However, people in Scotland may not be aware that new rules introduced last month now allow councils to take more rapid enforcement action to recover non-payments. West Dunbartonshire Council has already implemented the new policy.
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Martin Lewis highlighted how missing just one monthly Council Tax payment can result in a demand for the full annual bill - this is also the case in Scotland. The financial guru called for change arguing that if someone can't afford the monthly payment, how can they possibly find the money to pay for the full year.
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Every local authority across Scotland has increased annual Council Tax bills for the 2025/26 financial year, with first payments due by the end of last month. If you missed that payment, contact your local council as soon as possible and explain your circumstances, they may be able to help.
Under its new 2025/26 financial year rules, final Council Tax notices will no longer be issued to those who miss a payment, with only a single reminder notice sent, requiring action within 21 days.
Anyone who fails to comply will lose their right to pay by instalments, meaning they will owe the full-year balance.
The council will then make an application to the Sheriff Court to obtain a summary warrant, including a 10 per cent financial penalty, without any further notification. Advice Direct Scotland, which runs the free moneyadvice.scot service, said stricter recovery policies are likely to have the biggest impact on vulnerable people.
The charity revealed last month some households were already facing Council Tax debts of up to £15,000, before the April increase.
Advice Direct Scotland are urging Scots struggling to pay their Council Tax bills to get help, before missing any payments or increasing existing debt.
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The charity is also aware of other Scottish councils moving more quickly to recover debt, with those who are already struggling with energy and living costs most likely to be affected.
Advice Direct Scotland is able to support anyone affected by Council Tax recovery changes, and can guide worried households through the process if they miss a payment.
Council Tax arrears are a 'priority debt', meaning they should be addressed before other debts to avoid harsher enforcement measures, such as bank or wage arrestment.
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Councils can seize benefits and take other actions to recover the owed payments, risking the loss of homes or tenancy agreements if left unresolved.
Advice Direct Scotland urges anyone who has missed a payment to contact their council immediately and request to pay in smaller amounts, rather than waiting to be contacted.
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John Baird, head of debt services at Advice Direct Scotland, said: 'Any changes to the recovery process for missed Council Tax payments are most likely to affect people who are already struggling to pay their bills. The removal of final notices and the swift progression to summary warrants, including a 10 per cent penalty, could have serious implications for some.
'It is understandable that councils want to streamline the recovery process, but it is crucial that they also consider the potential consequences for individuals facing financial hardship. These new systems may lead to increased stress and worry, particularly for those who are unable to pay within the 21-day window or negotiate alternative payment arrangements.'
He added: 'We urge local authorities to ensure adequate support and clear communication is provided to residents, especially those in poverty, to help them navigate these changes and avoid severe penalties. Our team is here to help anyone who is struggling, regardless of their personal circumstances, so please reach out and contact us.'
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Experts are available at www.moneyadvice.scot or on 0808 196 2316.
The charity is also reminding people on low incomes to check if they qualify for a reduction on their Council Tax bill.
The latest figures from the Scottish Government show 458,470 recipients were eligible for Council Tax Reduction in December 2024, saving an average of over £850 a year. The data indicates one-in-five households are being supported through the scheme, which is not available anywhere else in the UK.
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Only people on a low income and resident in Scotland may be eligible for a Council Tax Reduction, which also provides successful claimants with up to 35 per cent off their water and waste charges.
While the Council Tax Reduction scheme mostly supports households on a lower income, help is also available for middle-earners or people finding it difficult to keep up with payments - especially those on a higher band.
To find out about getting help with your Council Tax, contact your local authority and explain your financial situation, they may be able to put your account on 'hold' and agree the next payment date, giving you a bit of breathing room to get back on track.
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Below is a quick guide on how to check your Council Tax bill and a list of circumstances which could see you paying less each month.
Check if you could be exempt from paying Council Tax
You will not pay Council Tax if:
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You are a full-time student
You are in the Armed Forces in Forces accommodation
You live in a care home or hospital
Your home is unoccupied and empty (up to six months) - for example, if you've gone into hospital
You have a severe mental impairment (e.g. dementia) - if you only live with someone who has dementia, then you'll be treated as a sole occupant as they will be disregarded, but you won't both be exempt
Could you be eligible for a discount on your Council Tax bill?
There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount - you could get a 25 per cent reduction, regardless of your financial circumstances.
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If you live with someone under 18 or a student
Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you are a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn't apply if the person receiving care is the partner of the carer, or is the carer's child aged under 18.
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If there are major changes to the value of your home
You may be able to get your home moved to a lower band if it has decreased in value. For example, if you have made home adaptations for a disabled person, or if a motorway has been built nearby.
You may also get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis.
If you change the way you pay
Although the total year's amount will stay the same, you can request your bill be split over 12 months instead of 10, so you can spread the cost and reduce your monthly outgoings.
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Alternatively, if you can afford to pay the whole bill in one lump sum, check with your local council if you can get a discount.
Apply for Council Tax Reduction
You may be eligible to claim a Council Tax Reduction if you're on a low income or claiming certain benefits.
You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you're working or unemployed.
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Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.
The amount you will get depends on many factors, including:
Which benefits you receive
Your age
Your income
Your savings
Who you live with
How much council tax you pay
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You may get more Council Tax support if you receive a disability or carers benefit.
If you receive the Guarantee Credit Part of Pension Credit you may even get your Council Tax paid in full. If you don't have it, but are on a low income and have less than £16,000 in savings, you may still get some help.
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Local councils
Contact your local council from the list below to apply for a Council Tax Reduction or discount.
Inverclyde
Renfrewshire
West Dunbartonshire
East Dunbartonshire
Glasgow
East Renfrewshire
North Lanarkshire
Falkirk
West Lothian
Edinburgh
Midlothian
East Lothian
Clackmannanshire
Fife
Dundee
Angus
Aberdeenshire
Aberdeen
Moray
Highland
Na h-Eileanan Siar
Argyll and Bute
Perth and Kinross
Stirling
North Ayrshire
East Ayrshire
South Ayrshire
Dumfries and Galloway
South Lanarkshire
Scottish Borders
Orkney
Shetland