A NEW council tax shake-up “is a step in the right direction” – but experts are warning that “it doesn’t tackle the core problem” of affordability.
Vulnerable people will have more time and support to settle their outstanding council tax bills under reforms to make the system fairer announced by the government.
Ministers have today confirmed changes will be made to the administration of bills, which have been left unchanged since 1993 and have become outdated and left people facing unnecessary stress and anxiety.
Under the current system, missing one monthly payment can leave people facing financial ruin as they become liable to pay the entire outstanding sum in a single payment just two weeks later.
This will change from next year with households given 63 days, roughly two months, to settle their bill and a requirement for councils to work with them on a sustainable repayment plan.
Billing for council tax will also be shifted to 12-month payments by default, rather than the current 10 months, and capping the costs which councils can charge when seeking a liability order – how councils recover overdue bills – to £100.
A step in the right direction
Taryn Lee Johnston, Owner at Lincoln-based The FCM Group, said she had seen the stress this causes in her own family.
She added: “These changes are a step in the right direction, but they don’t go far enough. I’ve seen how this plays out in real life. My son became the sole earner after his partner was diagnosed with a serious illness. They were doing everything they could to stay on top of things when a banking glitch meant one payment didn’t go through.
“The full balance was then taken from his wages, leaving them with nothing for the rest of the month. That kind of pressure is devastating. Giving people more time to pay and spreading costs across the year will ease some of that strain. The biggest shift will come from how situations are handled, with more understanding, better communication, and space for real circumstances to be taken into account.
“Council staff should be more understanding of those working and genuinely struggling. There’s also a bigger conversation around affordability. Many households are already stretched, so even small disruptions can have a huge impact.”
Harry Goodliffe, Director at HTG Mortgages, said the core problem is still not being fixed.
He added: “Council tax shake-up could be helpful, but not a real solution. This is simply an overdue fix to a harsh system. Giving people more time and flexibility should really help ease some of the immediate stress.
“But in reality, it doesn’t tackle the core problem – council tax is still high, and continuing to rise despite countless governments’ promises to reduce this within their manifesto. This is definitely a step in the right direction, but there are plenty more steps to climb.”
It doesn’t tackle the core problem
Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said councils can be brutal if you fall behind on your payments.
He added: “Your local council has often been the most brutal to deal with if you fall behind on bills due to unforeseen circumstances. Strong man tactics, and bailiffs at the door were common if you missed your council tax payment.
“It’s about time this was changed and vulnerable people aren’t as terrified as they once were. Your local authority should be putting their arm around your shoulder, not your throat, in times of need.”
