Skip to main content
Lesson 2

Priority bills guide

When there is not enough money for everything, the safest order is not the loudest creditor. It is the bill with the worst consequence.

Housing firstRent or mortgage
Heat and powerEnergy risk
Council taxLegal consequences
Debt helpAct before arrears grow
Core idea

Priority means consequence, not moral importance

Citizens Advice explains that priority debts are debts that can cause particularly serious problems if you do nothing about them. This does not mean other debts are harmless. It means some missed payments can threaten your home, energy supply, essential goods, wages or legal position faster than others.

A credit-card company may write, charge interest or damage your credit file. That is serious. But rent arrears, mortgage arrears, council tax, court fines, current energy arrears and essential hire purchase can create more immediate harm. In a crisis, protect the roof, heat, food, work travel, essential communication and legal basics before trying to keep every lender happy.

Priority examples

What usually sits near the top

Housing

Rent or mortgage arrears can put the home at risk. Contact the landlord or lender early and keep notes.

Council tax

Council tax arrears can move into enforcement. Check Council Tax Reduction if income is low.

Gas and electricity

Current energy arrears matter because supply and repayment arrangements can be affected.

These can carry serious enforcement consequences. Do not ignore letters.

Script

If you cannot pay in full

Use boring, clear wording: "I cannot afford the full payment this month. I want to avoid the arrears getting worse. My income is X, essential bills are Y, and I can offer Z while I get advice. Please confirm hardship options, payment plans and whether any support scheme applies."

Keep learning

Next steps

Sources

Sources and useful guidance

Consequence by bill

What happens if you do not pay each priority bill

"Priority" only makes sense once you can see the consequence attached to each bill. Knowing the actual sequence of events also tells you how much time you have and where a phone call can still change the outcome. The pattern is almost always the same: ignoring letters speeds the process up; contacting the creditor early slows it down and opens options.

BillWhat can happen if ignoredFirst move
RentArrears can lead the landlord to seek possession and, ultimately, eviction through the courts. Private and social tenancies follow different routes and notice periods.Tell the landlord before you miss a payment and ask about a short plan; get advice on your tenancy type.
MortgagePersistent arrears can lead the lender to start repossession proceedings, though courts expect lenders to treat this as a last resort.Contact the lender immediately — they must consider options such as a payment arrangement or temporary change to the term.
Council taxMiss an instalment and you can lose the right to pay by instalments — the whole year's bill becomes due. The council can get a liability order from the magistrates' court, then use enforcement agents (bailiffs) or deductions from wages or benefits.Ask the council for a payment arrangement and check Council Tax Reduction and any discounts (for example single-person discount).
Gas & electricitySuppliers can pursue arrears and, as a last resort, install a prepayment meter or disconnect — but only under strict Ofgem rules, with extra protections for vulnerable households.Call the supplier and ask for a payment plan, hardship support and the Priority Services Register if anyone is vulnerable.
Court finesUnpaid fines can escalate to enforcement agents, deductions from income, or in serious cases other sanctions.Contact the court that issued the fine and ask about paying by instalments.

The thread running through every row: the early phone call is the most powerful tool you have. Creditors have far more flexibility before a debt reaches court or enforcement than after, and a documented attempt to arrange payment counts in your favour.

Help schemes

Help if you cannot pay a priority bill

If the numbers simply do not add up, the answer is rarely "try harder" — it is usually a mix of getting the right support and getting free advice quickly. Several specific schemes exist for exactly this situation:

You can apply for several of these at once — getting a council tax reduction does not stop you asking your energy supplier for a payment plan. The benefits and entitlements you may be missing are often larger than any saving you can squeeze from the budget, so checking entitlement is one of the highest-value things to do first.

Who to contact

Who to contact, and in what order

When several bills are behind at once it is easy to freeze. A simple order of operations helps:

  1. List every priority bill and its arrears — rent or mortgage, council tax, energy, water, court fines — so you can see the worst consequences first.
  2. Contact each priority creditor before the deadline, explain your situation plainly, and ask for a payment arrangement and any hardship support. Keep a note of who you spoke to and what was agreed.
  3. Check what you are entitled to — benefits, Council Tax Reduction, Warm Home Discount and local welfare assistance — using a free benefits calculator.
  4. Get free debt advice from StepChange, National Debtline, Citizens Advice or MoneyHelper. They can negotiate on your behalf, set up a debt management plan and explain Breathing Space. Their advice is always free.
  5. Only then look at non-priority debts such as credit cards and overdrafts — keep minimum payments going where you can, but never ahead of a priority bill.
Beginner rule: the worst thing you can do with a priority bill is nothing. A short, polite call that sets up even a small payment plan almost always beats silence, because it keeps the bill out of court and enforcement.
Editorial accountability
Open Trust Centre →

Every page is reviewed against the editorial standards, written from primary sources, sourced openly, and corrected publicly. No affiliate revenue. No sponsored content. No paid placements.

Editorial standards Editorial process Corrections policy How we make money Editorial team Methodology