Council Tax deductions from benefits after a liability order

Council tax arrears can in appropriate cases be recovered by deductions from prescribed benefits rather than by repeated bailiff visits. The detailed recovery powers arise under the Council Tax enforcement regulations and the social-security deduction rules.^[1]

Current GOV.UK guidance confirms that organisations owed money for Council Tax can ask for deductions from certain benefits, including Universal Credit, income-related Employment and Support Allowance and Pension Credit, subject to the applicable rules.^[2]

For Universal Credit, third-party deductions for arrears are generally calculated as a percentage of the standard allowance and are subject to the overall deductions rules. Rates and caps can change, so use the current DWP figures rather than an old bailiff letter or historic web page.^[3]

If benefit deductions are affordable and appropriate, write to the council asking it to consider the statutory deduction route and to place bailiff enforcement on hold while the request is being determined. Include your National Insurance number only through a secure council channel.

Do not assume that asking for deductions automatically compels the council to withdraw an enforcement company. Obtain the council's written decision and, if deductions are set up, confirm what happens to the bailiff instruction and any lawfully incurred fees.

If you are in a breathing space, tell your debt adviser about any existing or proposed benefit deduction because the Debt Respite Scheme has specific rules for deductions and enforcement during a moratorium.^[4]

^{[1] Part VI of the Council Tax (Administration and Enforcement) Regulations 1992
[2] GOV.UK: Manage deductions from your benefits to pay debts and bills
[3] GOV.UK: Benefit and pension rates 2026 to 2027
[4] The Debt Respite Scheme Regulations 2020}