As of early Tuesday, the UK government unveiled substantial changes to council tax regulations in England. Households will now have 63 days to settle council tax arrears before formal enforcement action begins.
Previously, councils could demand the entire outstanding annual bill within just two weeks of a missed payment. This aggressive approach has left many families in distress.
The new system will shift billing to 12 months by default, rather than the previous 10 months. This aims to ease the financial burden on residents.
Additionally, councils will be limited to charging a maximum of £100 when seeking a liability order for overdue bills. This is a significant reduction in costs compared to past practices.
Councils are now required to collaborate with residents on sustainable repayment plans. This change is expected to foster a more supportive environment for those struggling with payments.
The definition of the Severely Mentally Impaired council tax discount will also be updated. A standardized application form will be introduced to improve access to support for this discount.
Local Government Secretary Steve Reed emphasized that these reforms aim to create a fairer system for families facing financial difficulties. He stated, “Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month’s council tax bill was missed.”
Financial expert Martin Lewis criticized the previous system, saying, “Council Tax debt collection is so aggressive it’d make banks blush.” He added that demanding full payment for an entire year after missing just one month is unrealistic.
The current enforcement system has remained unchanged since 1993. These new measures reflect an urgent need for reform in how councils handle tax arrears.
Details remain unconfirmed regarding when these changes will take full effect. However, they signal a significant shift in policy aimed at protecting vulnerable households.