Laura Sharman 16 December 2020

Councils told to prepare for 'breathing space moratorium' on council tax debt

Councils have been reminded that households struggling to pay their council tax bills will be able to pause payments from next May.

The Government's Breathing Space scheme aims to protect people in problem debt by suspending enforcement action and freezing charges, fees and certain interest for up to 60 days.

A letter to councils states: 'The scheme aims to help people in problem debt to better manage their finances, seek professional debt advice and reach sustainable solutions. This will impact on billing authorities in the way that they manage their council tax systems, and also those for other eligible debts.'

A separate scheme for people receiving mental health crisis treatment has also been launched, which has some stronger protections and lasts as long as a person’s mental health crisis treatment, plus 30 days.

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