Government announces consultation on council tax debt collection regulations 

The Chancellor of Duchy of Lancaster The Rt Hon Pat McFadden has announced that the Government will consult on council tax debt collection practices.

This announcement comes as new StepChange polling revealed today finds that over eight in ten (84%) UK adults oppose households having to pay their annual council tax bill in full if they miss one month’s payment – a measure which is currently standard practice for many councils across England and Wales.

Vikki Brownridge, CEO at StepChange said “Today’s announcement by the Minister is a welcome step forward. As the largest provider of debt advice and solutions in the UK, our advisors hear day in day out about the harmful impact of aggressive council tax debt collection, particularly on vulnerable households. As one of our core campaigns and key asks, we have been calling on the Government to review rules around imprisonment, rapid escalation of debt, and to ensure bailiffs are placed under proper regulation.

“As it stands, your local authority can demand the full year’s council tax bill in full if you miss just one payment – often well over £2,000. This rapid escalation both deepens people’s financial difficulty and adds to the weight of emotional burdens they carry, making it harder to deal with their debt problems. With many struggling to keep their head above water with the rising cost of living, the regulations, which date back to 1992, are outdated and in desperate need of reform.

“Our client, Michael, spoke directly to Martin Lewis and Susanna Reid about the troubles he faced when he fell into council tax arrears after a serious accident, and how he faced disproportionate action to recoup the debt. Unfortunately, examples like Michael are all too common, as council tax arrears across the country now stand over £6 billion, and the average StepChange client has arrears well over £2,000.

“We look forward to working closely with government on this consultation, to ensure that people are protected from harmful debt collection which only serves to exacerbate hardship and worsen debt problems.”