Martin Lewis, the UK’s most trusted consumer advocate, has achieved a significant milestone in the campaign for fairer council tax practices.

Following persistent efforts by Lewis and his charity, the Money and Mental Health Policy Institute (MMHPI), the government has announced a consultation to address the aggressive methods currently employed in council tax debt collection.

This move is a major win not just for Lewis and MMHPI, but for campaigners across the board – including Fairer Share – who have long called for a more compassionate and modern approach to property taxation. It reflects a growing consensus that the current council tax system is outdated, regressive, and in urgent need of reform.

The Issue: A System in Need of Reform

Under existing regulations, missing a single council tax payment can lead to severe consequences. Within three weeks, councils can demand the full annual amount, and if unpaid, escalate the matter to court, adding fees and potentially involving bailiffs – all within a six-week period. Lewis has described this process as “the most vicious and aggressive form of debt collection” in the UK, highlighting its disproportionate impact on vulnerable individuals, particularly those with mental health challenges.

Government Response: A Step Towards Fairness

In a recent interview on ITV’s Good Morning Britain, Chancellor of the Duchy of Lancaster Pat McFadden acknowledged the issue and confirmed that the government will consult on changing these practices. The proposed consultation aims to allow a reasonable period for individuals to repay their debts, moving away from the current rapid escalation model.

Emotional Victory for Campaigners

Lewis expressed his emotional response to the announcement, stating, “I’m a bit teary, if I’m honest. In a good way, though, because I just had a win that I wasn’t expecting.” He emphasised the devastating impact the current system has had on countless individuals and expressed hope that this consultation marks the beginning of meaningful change.

Broader Support and Implications

The MMHPI and other organisations have welcomed the government’s decision. Helen Undy, Chief Executive of the MMHPI, remarked, “We are absolutely delighted that the Government has listened to sense and is taking the first steps towards making council tax debt collection fairer”.

This development aligns with Fairer Share’s ongoing advocacy for a proportional property tax system that is equitable and reflective of individuals’ ability to pay. The current council tax framework, with its outdated valuation bands and punitive collection methods, underscores the need for comprehensive reform.

Looking Ahead

As the government moves forward with the consultation, stakeholders and citizens alike have an opportunity to contribute to shaping a more just and compassionate approach to council tax collection. Fairer Share remains committed to supporting initiatives that promote fairness and equity in property taxation.

For more information on Fairer Share’s proposals and how they stand to benefit homeowners and local areas alike, head to our policy page.