Joint and several liability review: Statement of action and engagement summary

Statement of action

Introduction

The Scottish Government recognises that victim-survivors of domestic abuse can encounter significant challenges when interacting with public services and systems, particularly where financial abuse or coercive control has formed part of their experience. Ensuring public services respond fairly, consistently and compassionately to those circumstances is an important part of the Scottish Government’s wider efforts to tackle violence against women and girls.

Joint and several liability is a long-standing feature of the Council Tax system and connected water and sewerage charges. It allows local authorities to recover the full amount owed from any liable individual, which helps ensure local services are funded effectively.

However, the Scottish Government acknowledges that being jointly and severally liable for Council Tax can create very difficult circumstances for victim-survivors of domestic abuse.

The Scottish Ministers supported an amendment to the Housing (Scotland) Bill requiring a dedicated review of how Council Tax joint and several liability rules impact people affected by domestic abuse. This is now reflected in section 76 of the Housing (Scotland) Act 2025, which requires the Scottish Government to undertake that review.

This review sits within a wider programme of work to ensure Scotland’s Council Tax system operates fairly and effectively and has also provided an opportunity to consider whether additional changes are required to make Council Tax collection fairer. As such, this Statement of Action sets out wider proposals aimed at improving fairness across the Council Tax system for all taxpayers.

The Scottish Government will take forward these proposals and will seek views on how they can be implemented most effectively. As part of this process, consideration will be given to the implications for water and sewerage charges, due to the way they are collected alongside Council Tax.

Where changes are subject to primary legislation, the Scottish Ministers will explore appropriate legislative vehicles to deliver changes as soon as possible.

Joint and several liability for victim-survivors of domestic abuse

The Scottish Government will take action so that survivors of domestic abuse are not unfairly burdened by Council Tax debt, including delivering practical solutions to joint and several liability.

The Scottish Government will consult in 2027 on creating an exception to joint and several liability for victim-survivors of domestic abuse.

This would mean that, where relevant criteria are met, victim-survivors would only be liable for 50% of their liability for both Council Tax and water & sewerage charges. They would also be able to seek support from the local authority in reducing that remaining liability or removing it entirely.

Following consultation, the Scottish Government will seek to introduce these changes through legislation.

The Scottish Government will also consider further research in this area where the rapid evidence review undertaken as part of the statutory review has identified gaps.

Creating a 63-day breathing space after a missed payment

The Scottish Government will extend the period before enforcement action can be taken after a missed council tax payment from 14 days to 63 days from 1 April 2027.

As part of the review of joint and several liability, a recuring theme in discussions with stakeholders was the speed at which debt recovery methods can be engaged once payment of a single month’s instalment is missed.

Slowing down the speed at which someone loses the right to pay by instalments has already been implemented in Wales from 1 April 2026 and will come into force in England from 1 April 2027. It will reduce the pressure on victim-survivors, who may require additional time and support to aid their recovery, and will also be of benefit to Council Tax-payers across Scotland.

Wider Council Tax debt reforms

The Scottish Government will consult in 2027 on wider Council Tax debt reforms including:

• Improving processes around Council Tax enforcement
• Easing rules around Council Tax Reduction backdating
• Exploring changes to the rules around prescription (debt expiration) period – currently twenty years

Any subsequent legislative changes will ensure debt recovery arrangements remain fair, proportionate and responsive to individual circumstances, while allowing local authorities to continue to collect revenue that funds essential local services.

Council Tax administration and enforcement

In addition to creating the 63-day breathing space, the Scottish Government will consult on wider administration and enforcement issues related to Council Tax. The consultation will consider whether more consistent standards are needed in areas such as:

• The number, timing and content of reminder and final notices
• Flexible or alternative repayment arrangements
• The use of different communication methods and further engagement where a taxpayer has not responded

Council Tax Reduction backdating

Council Tax Reduction can currently be backdated for up to six months for working-age applicants who demonstrate good cause and three months for pension-age applicants. Entitlement relating to an earlier period cannot normally be applied beyond those limits.

This may create difficulties for victim-survivors of domestic abuse who have been prevented from managing household finances or applying for support. Easing the backdating could support their recovery and the Scottish Government will consult on this change.

Prescription

Council Tax debt and debt for water and sewerage charges is generally subject to a twenty-year prescription period. The Scottish Government will consult to gather further evidence on:

• The effect of changing the length of time such debts can be pursued
• The financial implications for local authorities and Scottish Water of any change
• The treatment of historic debt

Data-sharing

The Scottish Government will continue work on data-sharing in recognition of the potential improved data-sharing has to support fairer and more effective administration of Council Tax.

It will also work with local government, Social Security Scotland and other relevant public sector partners to consider how to improve take-up of Council Tax Reduction.

Both of these areas will support early identification of financial vulnerability which can help prevent arrears from arising and reduce the need for enforcement action.