William Eichler 20 June 2025

Consultation on council tax debt collection launched

Consultation on council tax debt collection launched image
© ShaunWilkinson / Shutterstock.com.

The Government has launched a consultation on proposals aimed at overhauling council tax debt collection practices.

The consultation is seeking views on proposals to increase the time before councils can request a full council tax bill from households.

It is also proposing the introduction of a cap on fees added to debt when going to court and changing?when a household may become liable for a full-year's bill.

Minister for Local Government and English Devolution, Jim McMahon OBE said: ‘Under our plans, local government will be there to support, and not to punish, people who fall behind.’

Cllr Pete Marland, chair of the Local Government Association's Economy and Resources Board, said that councils have ‘implemented a wide range of measures to ensure that recovery practices are fair, and support is available for households who are struggling to pay their bills.’

He added the LGA looks forward to working with the Government to enable ‘councils to invest in council tax collection practices that effectively balance the collection of vital revenues with measures that help those struggling to pay.’

The Government has also proposed changing council tax billing from 10-months to 12-months by default and the 'outdated and alienating' name of the ‘severe mental impairment’ disregard.

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