A serious shake-up to how council tax is billed and picked up is on the playing cards, and it might be nice information for working households, these on tight budgets, and anybody who’s ever been stung by an unfair penalty for falling behind.
When you’ve ever puzzled why lacking one council tax cost means your council instantly calls for the entire 12 months upfront, or why your invoice shoots up simply if you’re getting again on observe, then this one’s for you.
Right here’s what’s altering, why it issues, and what to look out for.
Council tax modifications
Proper now, council tax payments are usually unfold over 10 months (April to January), with a two-month break in February and March. Whilst you can ask to pay over 12 months, it’s not the default.
The Authorities needs to vary that.
Below the brand new proposals, 12-month funds would develop into the usual which can assist unfold the associated fee extra evenly, making it simpler to price range month to month.
For the common Band D family, this might imply round £38 much less per 30 days, easing the squeeze throughout robust occasions.
And when you’d desire the 10-month choice to be paid up sooner, that’ll nonetheless be out there too.
Cracking down on unfair council tax debt restoration
Miss a single cost and instantly owe the lot?
That’s how the present system works in lots of locations, and it’s triggered main stress for numerous households.
The Authorities is now :
- Stopping the “pay the complete 12 months” rule from kicking in so rapidly.
- Capping the additional fees councils can add when your debt is taken to court docket.
- Reviewing how and when bailiffs are used, particularly the place persons are already weak or struggling.
This transfer has been backed by Martin Lewis and the Cash and Psychological Well being Coverage Institute, who’ve campaigned for over a decade to cease aggressive council tax assortment that hits individuals once they’re already down.
Assist might be made less complicated and clearer
Some assist already exists, like reductions for individuals with sure medical situations or these on low incomes, however a lot of it’s hidden in purple tape or makes use of complicated language.
For instance, the “Extreme Psychological Impairment” low cost may get a brand new identify and a less complicated method to apply, so extra people who find themselves eligible can truly entry it.
The principles for care employees and apprentices are additionally beneath overview to see if extra individuals may get reductions.
Additionally see: How lengthy can somebody keep earlier than paying Council Tax?
And to spice up transparency, there are plans to obviously clarify what council tax truly pays for, one thing that might assist individuals really feel a bit higher about forking it out.
Might you be within the incorrect council tax band?
Whereas revaluing council tax bands isn’t a part of this explicit reform, the Authorities says it needs to make it simpler to problem a band when you suppose your property’s been wrongly positioned.
Some houses haven’t been correctly assessed since 1991 (sure, actually), so a whole lot of 1000’s of individuals may be paying an excessive amount of with out realising.
What this all means
These proposed modifications are a part of the Authorities’s wider “Plan for Change”, geared toward supporting working individuals and fixing damaged methods that punish those that fall behind.
In the event that they go forward, the modifications may:
- Make budgeting simpler
- Cut back the chance of spiralling debt
- Enhance entry to assist
- Assist make council tax really feel much less like a entice and extra like a good contribution
The session is now dwell, which suggests these modifications aren’t regulation but, however the truth they’re being severely checked out (with main voices like Martin Lewis behind them) means there’s actual hope.
Closing thought
Council tax has been caught within the 90s for too lengthy. This shake-up might be a long-overdue win for equity, simplicity, and a little bit of respiratory room for households feeling the stress.
When you’ve ever been caught out by the present system, or know somebody who has, keep watch over this session and share the information. Actual change would possibly lastly be on the best way.
