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England

In England, municipal (or council) tax arrears can be included in debt restructuring.

In April 2026, the UK Government announced reforms for England that are intended to make council tax collection (including for people under the UK version of debt review) fairer from 2027

Households will now have more time to repay their debts and have more breathing room when something goes wrong during the process. This is because the threshold for losing instalment plans has now been extended from one missed payment to three (alongside a minimum 63‑day window).

Councils are also now going to be required to take clear, supportive steps before escalating to enforcement. Basically, they have to try play nice before they get legal.

According to local debt management practices, council tax is now one of the most common debts facing households in the UK (and South Africa).

Due to the sudden changes in energy prices and transport costs due to the war in the middle east and the effects of the ongoing conflict in the Ukraine, many households (including those under some form of debt management) have found their arrears rising sharply and many people are simply struggling to keep up with their bills.

Under the previous system, a single missed payment could quickly spiral into demands for a full year’s charge, enforcement action and added costs.

It is hoped that these reforms will help create a more realistic path to debt repayment, giving people time to seek support and stabilise their finances.

Lessons

The inclusion of municipal debt into the debt review process is something that Debt Counsellor associations in South Africa would love to see worked into amendments in the National Credit Act since these types of debts are so common.

These coming changes in the UK are also a good lesson for all types of credit providers when considering how much leeway to give consumers who are struggling with debts, including consumers under debt review who run into difficulties. Prioritising keeping the process going has long term benefits that outweigh short term legal enforcement efforts.