The UK government is introducing new reforms to the council tax system, aiming to provide financial relief for millions of households, particularly those in council tax band D. With rising living costs placing increased pressure on families, these proposals are designed to make council tax payments more manageable and fairer.
By spreading payments over 12 months instead of the current 10, the changes seek to ease the burden on working people while addressing longstanding criticisms of the system’s impact on vulnerable individuals.
Government proposals: spreading payments over 12 months
Under the new plan, council tax payments would be spread over 12 months, as opposed to the current 10-month period.
This change would lead to an average reduction of approximately £38 per month for households in council tax band D. The government’s intention is to help ease the financial burden on working families, particularly in the face of increasing living costs.
Minister for Local Government, Jim McMahon, commented that the reforms were designed to make council tax “fairer, more transparent and easier to manage,” ensuring that those in the most challenging situations are not left struggling with large, unpredictable payments.
Concerns over the current system and debt collection practices
The current council tax system has long been criticised for its debt collection practices, which many argue disproportionately affect vulnerable individuals. Financial expert Martin Lewis has been vocal about these issues, highlighting how rapid and aggressive debt collection can have damaging consequences.
According to Lewis, some councils pursue debt recovery so aggressively that they can impose full-year payments within weeks of a missed instalment, which he deems “ridiculous.”
This practice, he argues, often leads to unnecessary costs for local authorities and exacerbates the financial difficulties of those struggling to pay. The consultation aims to address these issues by slowing down the recovery process, capping additional charges, and providing more support for those who need help paying.
The new proposals also suggest reforms to the “Severe Mental Impairment” discount, which has been criticised for being overly complex and underpublicised. This could provide much-needed relief for those with mental health conditions, making it easier to access the discounts to which they are entitled.
While the government’s proposed changes do not include a revaluation of council tax bands, a point raised by Lewis and other experts, it is seen as a step towards creating a more accessible system.
