Martin Lewis reveals how council tax could change – and urges people to act

Martin Lewis has revealed how Council Tax could soon be changing across the UK as a landmark consultation is launched.

The money expert says this is a chance for the ‘broken’ levy to be ‘fixed’ with Labour inviting anyone interested to share their views.

Some key changes are on the table, including an overhaul of Council Tax debt collection, and making it easier for households to challenge the rate at which they are paying.

The initiative has been launched by the Ministry of Communities, Housing and Local Government (MCHLG), the department headed up by deputy prime minister Angela Rayner.

Minister for Local Government and English Devolution, Jim McMahon OBE said: “As part of our Plan for Change, we’re putting working people first.”

“We are listening and taking action to make council tax fairer, more transparent and easier to manage. Under our plans, local government will be there to support, and not to punish, people who fall behind.”

Under current rules, councils are allowed to employ debt collection tactics that have been criticised as aggressive by campaigners. If a household misses a single payment, local authorities can ask for the whole year’s bill after six weeks, and enforce this request with bailiffs.

This is one of headline measures under consultation, after the government confirmed it would be included in May. Mr Lewis has encouraged anyone interested to participate in the consultation and have their views heard.

Also under consideration is changing or scrapping the rule which makes challenging a household’s Council Tax band much harder after six months in the property. Experts predict that hundreds of thousands of households are likely in the wrong band, meaning this change would make it easier for them to raise the issue.

However, an overall revaluation of council tax bands is not in the scope of the consultation, despite last being carried out in 1991.

Responding to the consultation’s launch, Mr Lewis said: Many parts of the Council Tax system are broken, and having called for some of these fixes for nearly 20 years, I’m delighted the government has listened and rapidly launched this long-due consultation, including many of the administration areas I hear the most complaints on.”

“Council Tax rapid and aggressive debt collection methods currently hurt millions and disproportionately affect those with mental health problems.”

“Plus, as council tax bands haven’t been revalued since the stop-gap drive-by valuations first done back in 1991 – while looking at that isn’t in the scope of this consultation – it’s only right that if people think they’re wrongly in too high a band, as 100,000s likely are, the government is consulting on making it easier to challenge, so people can pay the right price.”