Martin Lewis two-word verdict as major change to council tax bills proposed

Martin Lewis has shared his reaction and said "at last" after changes to the council tax system were put forward by the Government.

A new consultation was launched last week, which includes plans to split council tax into 12 monthly payments by default, instead of ten. This means households will be able to spread their council tax bill over smaller payments.

The average band D household would be pay around £38 less each month if they paid over 12 months. There will still be the option to pay over ten months if households want to do this.

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The "aggressive" way council tax debt is also collected will also be looked at as part of the consultation process. Councils can send a reminder seven days after just one missed payment - then after that, if the bill remains unpaid seven days later, the full amount for the year can be requested.

The council can also start enforcement action, including sending bailiffs. Martin Lewis published a video after the consultation was announced titled: "At last, a chance to fix council tax flaws... debt collection hell, SMI discounts and more."

He said: "I'm delighted to say in this Government consultation they're talking about slowing down the debt collection process, adding in that councils must be considerate towards their constituents.

"You know, constituents treated worse than customers here, capping additional costs and pointing people towards help to pay, all of which would get rid of the terribly counterproductive and life destructive system we have at the moment."

The consultation is also looking at ways to make it easier to challenge your council tax band, if you believe you may be paying too much. It is estimated that around 400,000 people are on too high of a band.

Finally, the Government is looking to change the outdated name of the "severe mental impairment" discount, which gives qualifying households up to 100% off their council tax bill, to "significant cognitive impairment" discount.

The Government plans to run the consultation for 12 weeks, from June 20 to September 12. Any changes will be confirmed in autumn.

Grace Brownfield, head of influencing and communications at Money Advice Trust, the charity that runs National Debtline, said: “We’ve long campaigned for improvements to how people are treated when they fall behind on their council tax, which would benefit councils too.

“We’re pleased the Government has recognised this and is looking at making changes. Extending the time period before councils can make people liable for their entire annual bill, as well as introducing new steps councils have to take to understand someone’s situation and support them accordingly could make a big difference in reducing the harm council tax debt can cause.”