From April 2026, council tax bills across England will rise again. The government allows most councils to increase rates by up to 5% per year without holding a local referendum — and the majority are taking that full increase. For a Band D property, that means an extra £70–£110 per year on top of an already record-high bill.
How much is council tax going up?
The government sets a referendum threshold — councils can increase up to this limit without seeking approval from residents. For 2026/27, the limit for most councils is:
This means unitary authorities and county councils with adult social care responsibilities can raise bills by up to 5% in total. District councils (which do not fund social care) are limited to 3%.
Nearly all councils are raising by the maximum permitted. Some were also granted special permission by the government to raise even higher — most notably Birmingham City Council, which has been raising bills significantly due to its Section 114 financial difficulties.
2026/27 council tax rates: example councils
Band D rates including police, fire and council precepts (approximate):
| Council | Increase | 2026/27 Band D | Extra per year |
|---|---|---|---|
| Birmingham City | 4.99% | £2,183 | +£104 |
| Manchester City | 4.99% | £1,958 | +£93 |
| Leeds City | 4.99% | £1,889 | +£90 |
| Sheffield City | 3.99% | £1,872 | +£72 |
| Bristol City | 4.99% | £2,090 | +£99 |
| Newcastle City | 4.99% | £2,041 | +£97 |
Figures are approximate. Your exact bill depends on your local authority, band, and any discounts you receive.
Why does council tax keep going up?
Council tax has risen faster than inflation for most of the past decade. Several structural factors drive this:
Adult social care costs
Demand for elderly and disabled care has grown substantially, and local authorities bear most of the cost. The dedicated adult social care precept allows councils to raise extra specifically to fund this.
Central government grant reductions
Local government grants from central government were cut significantly during the 2010s and have not fully recovered. Councils that once relied on grants now rely more on council tax.
Wage inflation
Council workforces are large, and rising wages — driven partly by minimum wage increases — push up costs. This feeds directly into council tax rises.
Increasing demand for services
Homelessness, children's services, and SEND (special educational needs and disabilities) provision have all seen cost increases well above general inflation.
What can you do about your council tax bill?
You cannot stop your council raising rates within the permitted limits. But there are several things you can do to reduce your bill or avoid overpaying:
1. Challenge your band (highest impact)
If your property is in the wrong band, you are overpaying every year — and a 5% increase makes that overpayment even larger. A successful appeal drops you to the correct band immediately, cuts your annual bill, and generates a backdated refund for every year you've overpaid.
Average refund for successful appeals: £1,500–£3,000+
2. Check if you qualify for a discount
Many households don't claim discounts they're entitled to:
- 25% single person discount — if you live alone
- Student exemption — full-time students
- Severe Mental Impairment (SMI) discount — if someone in the household has a severe long-term mental impairment
- Council Tax Support — means-tested reduction if you're on a low income
- Disability band reduction — if the property has been adapted for a disability
3. Set up a direct debit and check your payment plan
Most councils allow you to spread payments over 12 months rather than 10. This doesn't reduce the total but lowers each monthly payment. Call your council's tax team to ask — this option isn't always advertised.
4. Apply for hardship relief
All councils have a discretionary hardship fund for people facing genuine financial difficulty paying their council tax. The criteria vary by council, but if you are struggling, it is worth contacting your council's benefits team.
How the 5% increase affects different bands
Council tax is calculated as a multiplier of the Band D rate. A 5% increase in the Band D rate flows through to every band at the same percentage. However, the absolute pound increase is larger for higher bands:
| Band | Multiplier | Typical 2025/26 | +5% increase |
|---|---|---|---|
| A | 6/9 | ~£1,200 | +£60 |
| B | 7/9 | ~£1,400 | +£70 |
| C | 8/9 | ~£1,600 | +£80 |
| D | 9/9 | ~£1,800 | +£90 |
| E | 11/9 | ~£2,200 | +£110 |
| F | 13/9 | ~£2,600 | +£130 |
| G | 15/9 | ~£3,000 | +£150 |
| H | 18/9 | ~£3,600 | +£180 |
National averages — your exact bill depends on your local authority.
Don't pay more than you should
If your band is wrong, this year's increase makes your overpayment even bigger. Check in 30 seconds — it's free.
Check my council tax band →