Overview

• The government has initiated a consultation to reform council tax debt collection practices in England, led by local government minister Jim McMahon.
• Current rules allow councils to demand full annual payments and involve bailiffs within six weeks of a single missed installment, often adding significant costs.
• StepChange reports that around three million Britons were in council tax arrears in 2024, with an average debt of £1,726, disproportionately affecting vulnerable households.
• Martin Lewis and the Money and Mental Health Policy Institute have campaigned against these practices since 2024, calling them excessively punitive and harmful.
• Debt charities, including StepChange and the Money Advice Trust, have welcomed the consultation, urging fairer repayment terms and better support for struggling households.