Households in England will soon see major changes to council tax regulations. The UK government has announced a new framework aimed at reducing aggressive enforcement actions.
Currently, councils can demand the entire outstanding annual bill within just two weeks of a missed payment. This has caused distress for many families, often leaving them terrified of bailiffs knocking on their doors.
Under the new rules, households will have 63 days to settle any council tax arrears before formal enforcement begins. This shift is designed to provide residents with more time to manage their finances.
Additionally, billing for council tax will change from a 10-month to a 12-month payment schedule by default. This adjustment aims to make payments more manageable for families.
The government will also cap the costs councils can charge when seeking liability orders for overdue bills at £100. This marks a significant change from previous practices that allowed for higher fees.
Councils will now be required to work with residents on sustainable repayment plans. Local Government Secretary Steve Reed emphasized that these reforms aim to make the system fairer and support families who fall behind.
The name and definition of the Severely Mentally Impaired council tax discount will also be updated. A standardized application form will be introduced to improve access to this support.
Martin Lewis, a financial expert, criticized the current system, stating, “Council Tax debt collection is so aggressive it’d make banks blush.” He added that many councils demand payment for an entire year if just one month is missed.
This overhaul comes as the existing enforcement system has remained unchanged since 1993. The urgency for reform reflects growing concerns over the impact of aggressive debt collection on vulnerable families.
Details remain unconfirmed regarding when these changes will take effect. However, they represent a significant shift in how council tax arrears are managed in England.
