The Government has announced changes to council tax administration in England, giving households more time to settle arrears and requiring councils to work with residents on repayment plans.
Under the current system – unchanged since 1993 – missing a single monthly payment can result in a household becoming liable for its entire outstanding annual bill within two weeks. From 2027/28, residents will instead have 63 days to settle before formal enforcement action begins.
The reforms also include a shift to 12-month billing by default, rather than the existing 10-month arrangement, and a cap of £100 on costs councils can charge when seeking a liability order for overdue bills.
Local Government Secretary Steve Reed said: ‘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.
‘We will stop this and make the system fairer by supporting families who fall behind.’
The Government also intends to update the name and definition of the Severely Mentally Impaired council tax discount, alongside plans to introduce a standardised application form to improve access to the support.
Martin Lewis, founder and chair of the Money and Mental Health Policy Institute and MoneySavingExpert, said: ‘Council Tax debt collection is so aggressive it’d make banks blush. It’s the most vicious and damaging form of legal debt collection out there – causing counterproductive misery for millions.
‘We’ve spent the last 18 months campaigning hard to change this hideous system, and having seen so much pain caused by it, I’m genuinely moved by this huge first step towards making things better.’
Check out: Time to ban the use of bailiffs by Joe Cox, senior policy officer at Debt Justice.
