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 fee means your council instantly calls for the entire 12 months upfront, or why your invoice shoots up simply once 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 modifications
Proper now, council tax payments are usually unfold over 10 months (April to January), with a two-month break in February and March. When you can ask to pay over 12 months, it’s not the default.
The Authorities desires to vary that.
Below the brand new proposals, 12-month funds would turn out to be the usual which may also help unfold the price extra evenly, making it simpler to funds month to month.
For the typical Band D family, this might imply round £38 much less monthly, easing the squeeze throughout robust instances.
And should you’d choose 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 fee and instantly owe the lot?
That’s how the present system works in lots of locations, and it’s induced main stress for numerous households.
The Authorities is now taking a look at:
- Stopping the “pay the total 12 months” rule from kicking in so shortly.
- Capping the additional costs councils can add when your debt is taken to court docket.
- Reviewing how and when bailiffs are used, particularly the place individuals are already susceptible 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 after they’re already down.
Assist might be made less complicated and clearer
Some assist already exists, like reductions for individuals with sure medical circumstances 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 solution to apply, so extra people who find themselves eligible can really entry it.
The foundations for care employees and apprentices are additionally beneath assessment 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 really pays for, one thing that might assist individuals 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 should you assume your property’s been wrongly positioned.
Some properties haven’t been correctly assessed since 1991 (sure, actually), so a whole bunch of hundreds of individuals is perhaps 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”, aimed toward supporting working individuals and fixing damaged techniques that punish those that fall behind.
In the event that they go forward, the modifications may:
- Make budgeting simpler
- Scale back the danger 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 stay, which implies these modifications aren’t regulation but, however the truth they’re being critically checked out (with main voices like Martin Lewis behind them) means there’s actual hope.
Remaining 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 may lastly be on the best way.
