Council Tax Collection and Role of Enforcement Agents

Council Tax Collection and Role of Enforcement Agents.

The vast majority of the general public understand the importance of Council Tax and its impact on funding local frontline services. An unfortunate reality, however, is that a small percentage of people do not pay their Council Tax when it is due.

The latest official statistics demonstrate the scale of Council Tax collection across England and Wales, and the important role that effective collection plays in supporting local government.

In England, local authorities collected a total of £43.7 billion in Council Tax during 2025–26, irrespective of the year to which the payments related. This was an increase of £2.5 billion, or 6.0%, compared with 2024–25.

By the end of March 2026, local authorities had collected £42.9 billion relating specifically to Council Tax due for 2025–26. This represented an average in-year collection rate of 95.6%, a decrease of 0.3 percentage points compared with the previous year.

The figures for Wales are similar. During the financial year 2025–26, Welsh billing authorities collected 95.3% of Council Tax billed. The amount collected in respect of 2025–26 bills, excluding Council Tax Reduction Scheme amounts, was £2,404 million out of £2,524 million collectable.

These figures demonstrate that the overwhelming majority of Council Tax is collected successfully. However, even a relatively small proportion of unpaid Council Tax still represents a significant amount of money.

On 31 March 2026, the total amount of Council Tax still outstanding in England was £7.4 billion. This is a cumulative figure and includes arrears that may stretch back a number of years. It represented an increase of £748 million compared with the figure at the end of 2024–25.

In Wales, the total amount outstanding on 31 March 2026 was £318 million, of which £119 million related to in-year arrears. During 2025–26, Welsh billing authorities also collected £55 million of arrears and wrote off £9 million as uncollectable.

It is important to remember that certificated enforcement agents (EAs) are not traditional debt collectors. They operate within a specific legal framework and will generally become involved after a local authority has first unsuccessfully attempted to recover the debt through its own processes.

Enforcement is the last resort, in which an individual is taken to court after other attempts to resolve their debt has been unsuccessful. Most enforcement cases are resolved without the need for an agent to visit someone's home. Where a case does progress to a visit, the agent's role is to seek payment or agree an appropriate repayment plan in accordance with the relevant procedures.

It is also important to recognise that enforcement action can identify cases where a person is vulnerable or experiencing financial difficulty. Enforcement agents may be the first to identify a vulnerability that has not previously been known to the local authority, particularly when visiting someone’s home.

When this happens, appropriate action can include suspending or adapting enforcement activity and referring the person back to the local authority or appropriate support services. This can provide an important opportunity for someone’s circumstances to be properly considered and for appropriate support to be put in place.

The latest collection figures also demonstrate that Council Tax recovery does not end when the financial year does. Local authorities continue to pursue outstanding amounts and collect arrears relating to previous years.

In England, for example, the £7.4 billion outstanding on 31 March 2026 is a cumulative figure rather than an indication that £7.4 billion of Council Tax relating solely to 2025–26 had gone unpaid. Similarly, the Welsh figures distinguish between total outstanding amounts and the £119 million of in-year arrears.

This distinction is important when considering the role of enforcement. Council Tax collection is not simply about recovering money from people who have chosen not to pay. People can fall into arrears for a wide variety of reasons, including financial hardship, changes in circumstances, various forms of vulnerability or difficulties in engaging with the local authority.

At the same time, effective recovery of Council Tax remains an important part of local government finance. The very high in-year collection rates demonstrate that most taxpayers do meet their obligations, but the amounts that remain outstanding show why councils need effective processes for recovering arrears.

Enforcement agents therefore have an important role to play in the Council Tax collection process. Their role is not simply about collecting money. Effective enforcement can help local authorities recover the money needed to fund essential services, while also providing an opportunity to identify people who require additional support.

The challenge is to maintain effective Council Tax collection from those who choose not to pay, while ensuring that enforcement is fair, proportionate and responsive to the circumstances of those who may be vulnerable or experiencing financial difficulty.

Sources:

England: Collection rates for Council Tax and non-domestic rates in England, 2025-2026 (31 July 2026)

Wales: Council Tax collection rates: April 2025 to March 2026 (11 June 2026)

See also: What really happens when a debt reaches enforcement? | CIVEA

October 2026