Consumer champion Martin Lewis, who has pushed for changes to the way council debt is collected, has praised the changes
A major shake-up of the council tax system will see households given more time to settle missed payments.
Under current rules, people can become liable to pay their remaining council tax bill for the entire year just two weeks after missing one monthly payment.
But new reforms mean households will have 63 days, about two months, to make up any payments, and any admin costs will be capped at £100.
Discounts for vulnerable people will also be easier to claim.
There will be a universal application system for the “Severe Mental Impairment” discount, which can see council tax bills wiped altogether, after campaigners warned many people are unaware of its existence.
The discount will also be renamed “Significant Cognitive Impairment” in line with the term already used in Wales.
There is no definitive list of who may be eligible, but some examples include those who have dementia, severe learning difficulties, multiple sclerosis, or have had a stroke.
The discount requires a doctor to certify the condition.
The Government will also change council tax billing from ten months to 12 months by default, which could help households to spread the cost of their payments over a longer period.
Councils will still allow you to pay over ten months if you wish. Council tax is currently split over ten monthly payments, from April to January each year.
Consumer champion Martin Lewis, who has pushed for changes to the way council debt is collected, said: “Council tax debt collection is so aggressive it’d make banks blush.
“It’s the most vicious and damaging form of legal debt collection out there – causing counterproductive misery for millions.
“We’ve spent the last 18 months campaigning hard to change this hideous system, and having seen so much pain caused by it, I’m genuinely moved by this huge first step towards making things better.”
He added: “In a perfect world, it would be even longer and the lower cap would apply, but this is still a hugely welcome change to a 33-year-old process.”
Minister for Local Government Alison McGovern said: “The rules governing council tax bills haven’t changed since 1993. The world has moved on, and so must the system.
“Whether it’s spreading payments across the full year or making sure vulnerable people can actually access the discounts they’re entitled to, we are modernising council tax so it works for everyone.
“Good public services depend on a system that is efficient and fair, as readers of the Daily Mirror will know. These reforms will remove harsh enforcement methods and protect the most vulnerable.“
Local Government Secretary Steve Reed said: “Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month’s council tax bill was missed.
“We will stop this and make the system fairer by supporting families who fall behind.
“I want to thank Martin Lewis and his charity for their tireless campaigning, shining a light on this crucial issue affecting millions of people.”
