What are priority bills and what happens if they are unpaid?

When money is tight, it can be difficult to decide which bills to pay first. Some bills carry more serious consequences if left unpaid. These are known as priority bills.

Understanding what these are and what happens if you don’t pay them can help you manage your finances more effectively and avoid unnecessary penalties or legal action.

What are priority bills?

Priority bills are those that can have serious consequences if they are not paid. These include:

• Rent or mortgage payments. Missing payments can result in eviction or repossession of your home.
• Council tax. Non-payment can lead to enforcement action, including bailiffs, deductions from wages or benefits, or even imprisonment in extreme cases.
• Gas and electricity bills. Energy suppliers can install a prepayment meter or disconnect your supply if bills are left unpaid.
• Water bills. While your water supply cannot be disconnected, unpaid bills can lead to enforcement action, including deductions from wages or benefits.
• TV licence. Watching live TV or using BBC iPlayer without a licence can result in a fine of up to £1,000.
• Court fines. Unpaid fines can lead to bailiffs, deductions from your wages or benefits, or even imprisonment.
• Child maintenance payments. Non-payment can lead to enforcement action, including wage deductions or even imprisonment.
• Income tax, national insurance, and VAT. HMRC can take legal action, including seizing assets, issuing fines, or sending debt collectors.

What happens if you don’t pay your priority bills?

Rent or mortgage payments

Your landlord can issue an eviction notice if you fall behind on rent. Mortgage lenders may take legal action, leading to repossession of your home.

If you are struggling, seek immediate help from your local council or charities such as Shelter for advice on housing support.

Council Tax

Councils can take enforcement action quickly, leading to a court summons and a Liability Orders. These are issued by a magistrate’s court, granting a council or other authority the power to collect a Council Tax debt.

Councils may recover this debt through wage deductions, benefit deductions, or visits from bailiffs.

Contact your local council if you are struggling. Many offer repayment plans or discounts for those on low incomes.

Gas and electricity bills

Energy companies may install a prepayment meter, which means you must pay in advance for energy usage.

If no arrangements are made, they can eventually disconnect your supply.

Contact your supplier as soon as possible, they are required to offer payment plans and support for vulnerable customers.

You can check if you qualify for support schemes like the Warm Home Discount or Cold Weather Payments.

Water bills

While your water supply cannot be cut off, unpaid bills can still lead to debt collection and legal action.

Water companies often offer support for low-income households, so check with your provider. There are different regulated companies in the water and wastewater sector depending on the region you live in. You can use this postcode checker to find your supplier.

TV licence

Watching and recording live TV or watching BBC iPlayer without a licence can lead to fines up to £1,000.

If you cannot afford the licence, check if you qualify for a TV Licensing ‘Simple Payment Plan’. Find out more about the Simple Payment Plan and support if you are struggling to pay here. You can apply for the Simple Payment Plan here.

Court fines

Court fines can be enforced through bailiffs, wage deductions, or even imprisonment in serious cases.

If you are struggling, contact the court to request an affordable repayment plan. If you are at risk of imprisonment, seek advice.

Child maintenance payments

The Child Maintenance Service (CMS) can take action, including wage deductions and asset seizures. Speak to CMS to discuss a manageable repayment plan if you are struggling.

Income tax, national insurance, and VAT

HMRC has the power to take enforcement action, including freezing bank accounts and seizing assets.

If you cannot pay, contact HMRC as soon as possible to negotiate a Time to Pay arrangement.

Where to get help

If you are struggling with priority bills, don’t ignore the problem, there is help is available:

• Citizens Advice – free advice on debt and financial issues.
• StepChange – debt advice and support for managing payments.
• National Debtline – free and confidential debt advice.
• Turn2Us – support for those in financial hardship, including grants and benefits advice.

If you are struggling to pay your bills, prioritising them correctly can help prevent serious consequences. Always reach out to creditors, local authorities, or support organisations as soon as possible. Many providers and organisations offer assistance for those facing financial hardship, so you don’t have to face these challenges alone.