IMMEDIATE RELEASE

Martin Lewis’ charity responds to Welsh government plans to make council tax debt collection fairer

30 April 2025

Today the Welsh government is publishing a consultation, proposing ways to make council tax debt collection fairer.

In particular, it sets out proposals to extend the time period between someone missing a council tax payment, and their council demanding that they pay their full annual council tax bill. 

Currently, councils can require people to pay their full annual bill just three weeks after missing a payment. The average annual household council tax bill in Wales is £1,970, and in England is £1,770. 

Under the new Welsh government proposals, Welsh local authorities would have to wait a minimum of 62 days after someone misses a payment, before requesting that they pay their full annual bill. 

Welsh councils would also be required to take more steps to engage people who have missed a council tax payment and to signpost people to support, before demanding that they pay their full annual bill.  

In response to the plans, Helen Undy, Chief Executive of Martin Lewis’ charity the Money and Mental Health Policy Institute said:

“It beggars belief that if you miss one council tax payment, just three weeks later your council can demand that you pay your full annual bill —  which can be as much as 12 times more. Most people can’t lay their hands on that kind of money so quickly, and for many people with mental health problems, even opening the letters and navigating council bureaucracy to ask for help that fast is impossible too. 

“The system couldn’t have been designed better to pile on distress for people in council tax debt, especially those with mental health problems. In some cases, it’s contributing to people becoming suicidal. 

“So we welcome the Welsh government’s proposals to give people much more time between missing a council tax payment and having to pay their annual bill. We’d like that to be brought in line with commercial creditors, who typically wait 3-6 months before demanding full repayment of a debt. And we’re still calling for more ambitious changes too, including reducing the punitive extra charges that people often face when they fall behind on payments. 

“We also urge the UK government and other devolved administrations to follow the Welsh government’s example. With so many people struggling to keep up with rising bills, ending the harm caused by aggressive debt collection could save lives.”

ENDS

To set up an interview or for any other media enquiries, please contact Alex Goodfellow, External Affairs Officer, on 07935 216 804 or [email protected].

Notes to Editors

About the Money and Mental Health Policy Institute

The Money and Mental Health Policy Institute is an independent charity set up by Martin Lewis, and committed to breaking the link between financial difficulty and mental health problems. We conduct research, develop practical policy solutions and work in partnership with both those providing services and those using them to find what really works. www.moneyandmentalhealth.org