A significant overhaul of the council tax system is set to provide households with extended time to settle overdue payments. Currently, individuals face the full year’s council tax bill just two weeks after missing a monthly payment. However, upcoming reforms will grant households a 63-day grace period to catch up on payments, with administrative costs capped at £100.
Moreover, discounts for vulnerable individuals will be more accessible, with the introduction of a streamlined application process for the “Severe Mental Impairment” discount, now renamed “Significant Cognitive Impairment.” Eligibility criteria encompass conditions such as dementia, severe learning difficulties, multiple sclerosis, or stroke, requiring medical certification.
Additionally, the government plans to switch default council tax billing from ten to twelve months, enabling households to spread payments over an extended period. While the option to pay over ten months remains available, the alteration aims to enhance flexibility for taxpayers. Campaigner Martin Lewis praised the changes, emphasizing the need for a fairer and less aggressive approach to council tax debt collection.
Minister for Local Government Alison McGovern highlighted the necessity for modernizing the council tax system to align with current societal needs, emphasizing the importance of efficient and equitable public services. Local Government Secretary Steve Reed echoed these sentiments, emphasizing the aim to support families in financial difficulties and acknowledging the advocacy work of Martin Lewis in addressing these critical issues.
