IMMEDIATE RELEASE

Martin Lewis’ charity celebrates campaign win as Welsh government confirms plans to make council tax debt collection fairer

26 September 2025

The Money and Mental Health Policy Institute, the charity chaired and founded by Martin Lewis (MoneySavingExpert — quote from him below), has welcomed an announcement today from the Welsh government that it is making council tax debt collection fairer.

In particular, the Welsh Government has announced that it will 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, people can face demands to pay their full annual council tax bill just three weeks after missing a payment. 

But under the new rules announced today, people will not become liable for their full annual bill until 62 days after missing a payment. The average annual household council tax bill in Wales is £1,970, and in England is £1,770.

Martin Lewis, Founder and Chair of the Money and Mental Health Policy Institute and MoneySavingExpert, said:

“Council Tax debt collection is the most vicious, aggressive damaging form of debt collection there is out there. We’ve spent the last year campaigning hard for this hideous system to change, and so I’m over-the-moon the Welsh government has listened, and Wales is going to take the lead on improving things.

“Currently with many councils across England and Wales, if you miss a monthly payment, within three weeks they will ask you for a year’s payment. Then if you don’t pay that (and how are you going to if you can’t pay for the month) they take it to court, add extra costs, and call the bailiffs in – just six weeks after missing the original payment. It’s absolutely catastrophic, and devastating for people’s finances, and no commercial company would be allowed to do the same.

“Now people will have two months rather than three weeks to make up a missed payment before facing a full annual bill. That gives people more breathing space to find a bit of time to sort things out. It’s not perfect, I’d like it to be three months, similar to commercial lenders, but it is a huge improvement. We also need councils to work with their constituents who are struggling, to sign-post them for help rather than scare them into paying.”

ENDS

For enquiries or to set up an interview with a Money and Mental Health spokesperson, please contact Alex Goodfellow, External Affairs Officer at Money and Mental Health, on 07754 446 272 / or [email protected]