We reveal why the changes are being planned below
- Sam Walker, Consumer Reporter
MILLIONS of households could pay council tax bills over 12 months rather than 10 under a huge shake-up to payments planned by the Government.
Ministers are proposing to change the way households pay for the essential bill to help them manage their finances better.
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The change comes as part of a consultation launched today.
The consultation has also laid out plans to change the way council tax debt, or arrears, is recovered.
Under the plans, councils will have to wait longer before demanding a bill is paid in full and the costs charged to households through liability orders will be capped.
A liability order is a demand for payment of council tax issued by a Magistrates’ Court.
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Currently, if you miss a single payment your local authority can demand you pay the bill for the entire year and use bailiffs to enforce this.
The Government is also mooting changing the name of the so-called “severe mental impairment” discount.
Under the discount, someone who has been medically certified as having a permanent condition that affects their intelligence and social functioning, can get up to 100% wiped off their bill.
Ministers are also consulting on amending the definition of the discount to encourage take-up.
The consultation will also look at whether it can be made easier for households to challenge their council tax band.
Hundreds of thousands of homes are thought to be in the wrong council tax bands due to rushed assessments made in the 1990s.
How to Qualify for Free or Discounted Council Tax!
The Government said there is not currently a “straightforward mechanism” for people to check and challenge their bands.
It’s worth bearing in mind, none of the above changes are yet to come into force as they are just in a consultation stage.
The Government plans to run the consultation for 12 weeks, from June 20 to September 12.
Any changes will be confirmed in autumn.
Why is a consultation being launched?
The Government is launching a consultation following pressure from consumer groups and debt charities like Citizens Advice and StepChange over the rules around council tax collection.
Consumer expert Martin Lewis has described the use of bailiffs on households who haven’t paid their council tax as “caricature of the worst loan sharks“.
Council tax is considered a priority bill, which means those not paying it can end up in court and even facing imprisonment.
After the consultation was published by the Government earlier today, Mr Lewis said: “It’s not often that I get to say the Government has listened, but it has.”
Grace Brownfield, from the Money Advice Trust, added: “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.”
Cllr Peter Marland, chair of the Local Government Association’s (LGA) Economy and Resources Board, said: “Council tax income is an increasingly important funding stream for the local services millions rely on every day.
“Councils have a duty to residents to collect taxes so those services are not affected.
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“Councils also know residents can be affected by debt and financial hardship and have implemented a wide range of measures to ensure that recovery practices are fair, and support is available for households who are struggling to pay their bills.
“All councils already allow residents to pay council tax over a 12 month period, but we look forward to working with government on an approach that enables councils to invest in council tax collection practices that effectively balance the collection of vital revenues with measures that help those struggling to pay.”
How to save money on Council Tax
ONE of the biggest household bills you need to pay is Council Tax.
How much you pay will depend on the value of your home, but Senior Consumer Reporter Olivia Marshall explains how you can save.
Check for discounts
Not everyone pays council tax. If you have someone who’s living with you and they don’t count, you could get 25% off your bill.
This includes full-time students, people on certain apprentice schemes, a live-in carer looking after someone else and student nurses.
If you live on your own you can claim a discount of 25%.
You’ll have to apply for the discount on your local authority’s website and can check eligibility at gov.uk/apply-council-tax-reduction
Help for disabled people
People with certain disabilities can get a discount of up to 100%. This applies to anyone considered severely mentally impaired (SMI) which includes conditions such as dementia, Parkinson’s or learning difficulties resulting from a stroke.
If you’re living with someone affected by SMI then you could qualify for a discount too,
To be considered, a GP needs to certify the SMI and typically they will need to be receiving at least one type of benefit such as attendance allowance or personal independence payments.
Again, you can check your eligibility or a family member’s and apply on your local council’s website.
If you’re on a low income
If you’re on a low income or benefits, you might be able to claim a council tax reduction of up to 100%. This means you pay no council tax at all.
You can apply if you own your home or rent, and if you are unemployed or working.
But the rules vary between councils so you will need to contact yours to find out what you can get.
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