Overview

• Chancellor Pat McFadden announced a formal consultation to address council tax debt collection practices, focusing on fairer repayment schedules and reduced punitive measures.
• Under current rules, councils can demand full annual payments within three weeks of a missed installment, leading to rapid escalation into court action and bailiff involvement.
• Consumer advocate Martin Lewis and charities like the Money and Mental Health Policy Institute have long criticized these practices as aggressive and harmful to vulnerable individuals.
• The consultation will be overseen by Local Government Minister Jim McMahon, with input from advocacy groups and charities welcomed.
• A YouGov survey commissioned by StepChange found that 84% of respondents oppose the current policy of demanding full annual payments after a single missed month.