A serious shake-up to how council tax is billed and picked up is on the playing cards, and it may very well be nice information for working households, these on tight budgets, and anybody who’s ever been stung by an unfair penalty for falling behind.
Should you’ve ever puzzled why lacking one council tax fee means your council abruptly calls for the entire yr upfront, or why your invoice shoots up simply while you’re getting again on monitor, then this one’s for you.
Right here’s what’s altering, why it issues, and what to look out for.
Council tax adjustments
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 desires to alter that.
Beneath the brand new proposals, 12-month funds would turn out to be the usual which might help unfold the price extra evenly, making it simpler to funds 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 in case you’d choose the 10-month choice to be paid up sooner, that’ll nonetheless be accessible too.
Cracking down on unfair council tax debt restoration
Miss a single fee and abruptly owe the lot?
That’s how the present system works in lots of locations, and it’s brought about main stress for numerous households.
The Authorities is now taking a look at:
- Stopping the “pay the complete yr” rule from kicking in so rapidly.
- Capping the additional prices councils can add when your debt is taken to court docket.
- Reviewing how and when bailiffs are used, particularly the place individuals 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 folks after they’re already down.
Assist may very well be made less complicated and clearer
Some assist already exists, like reductions for folks 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 an easier solution to apply, so extra people who find themselves eligible can truly entry it.
The foundations for care staff and apprentices are additionally underneath assessment to see if extra folks 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 would assist folks really feel a bit higher about forking it out.
Might you be within the unsuitable council tax band?
Whereas revaluing council tax bands isn’t a part of this specific reform, the Authorities says it desires to make it simpler to problem a band in case you assume your property’s been wrongly positioned.
Some properties haven’t been correctly assessed since 1991 (sure, actually), so lots of of hundreds of individuals is likely to be paying an excessive amount of with out realising.
What this all means
These proposed adjustments are a part of the Authorities’s wider “Plan for Change”, aimed toward supporting working folks and fixing damaged techniques that punish those that fall behind.
In the event that they go forward, the adjustments 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 lure and extra like a good contribution
The session is now stay, which implies these adjustments aren’t legislation but, however the truth they’re being critically 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 may very well be a long-overdue win for equity, simplicity, and a little bit of respiration room for households feeling the stress.
Should 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 may lastly be on the way in which.
