Households given longer to repay missed council tax bills in reforms
The government has announced new rules on how missed council tax payments are enforced.
Residents who miss a council tax payment will have up to two months to repay it under central government reforms.
Under the current system, missing a single monthly instalment can leave people liable to pay the full outstanding balance within two weeks.
Failure to meet that deadline can result in enforcement action, including the use of bailiffs.
Under the new plans, households will be given 63 days — roughly two months — to settle the bill, with councils required to work with residents on a repayment plan.
Councillor Steve Pitt, leader of Portsmouth City Council, described the new rules as “entirely sensible”.
He said the council has “always been very cautious about the use of bailiffs anyway, it’s not something we’ve rushed towards”.
“The team has always been willing to work with people to find solution and set up payment plans in a sympathetic way.”
He added that while council tax is compulsory, and the council is obliged to collect it, he would avoid enforcement wherever possible in favour of working “proactively with our residents.”
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. I want to thank Martin Lewis and his charity for their tireless campaigning, shining a light on this crucial issue affecting millions of people.”
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.”