IMMEDIATE RELEASE
Government must end brutal council tax collection process before allowing councils to hike up bills
20 November 2025
News reports today have speculated that the government is drawing up plans to allow local authorities in London to raise council tax above the 5 per cent cap without a public vote to help cover losses from major funding reforms.
In response, Martin Lewis’ charity the Money and Mental Health Policy Institute has highlighted concerns that increasing council tax bills could result in more households falling into arrears, and facing a punitive council tax collection process.
Research by Money and Mental Health shows that the aggressive way that councils across the country rapidly escalate collection and extra charges for people who miss a council tax payment causes grave distress, and can even contribute to people becoming suicidal.
Money and Mental Health is calling on the government to reform this process and make council tax collection more supportive and less aggressive, ahead of allowing councils to increase bills.
Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:
“If the government is going to allow councils to hike up bills, it needs to first end the brutal and counterproductive way that councils across the country hound people over missed payments.
“A 10% rise in council tax will hit many households hard, and could result in more people falling behind on bills. As things stand, they will then face a punitive process in which councils are demanding full repayment of their annual bill, piling on extra charges and sending the bailiffs in – all within six weeks of a single missed council tax payment.
“That causes huge distress and locks people in financial misery, and it doesn’t help councils recoup more money.
“The government is considering changing this council tax collection process in England. It needs to act now, or else rises in bills will lead to more unnecessary despair for people who are already struggling.”
ENDS
Contact:
For media enquiries, please contact Alex Goodfellow, External Affairs Officer at Money and Mental Health, on 07754 446272 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