More support for vulnerable people to pay council tax

Under new reforms to make the council tax system fairer, vulnerable people will have more time and support to settle their outstanding council tax bills.

Changes will be made to the administration of bills, which have not changed since 1993.

Under the current system, missing one monthly payment means people become liable to pay the entire outstanding sum in a single payment just two weeks later. From next year, households will be given 63 days to settle their bill and councils will be required 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. The costs which councils can charge when seeking a liability order will be capped at £100.

Local Government Secretary Steve Reed said: "Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month’s council tax bill was missed.

"We will stop this and make the system fairer by supporting families who fall behind. I want to thank Martin Lewis and his charity for their tireless campaigning, shining a light on this crucial issue affecting millions of people."

Minister for Local Government Alison McGovern said: "We know the way council tax is run is outdated and confusing and has stopped some of the most vulnerable people from accessing the support they need.

"Our changes will cut through the complexity and make sure that council tax is fit for the 21st century."