Martin Lewis’s charity celebrates campaign win, as government agrees to consult on making council tax collection fairer

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Martin Lewis’s charity celebrates campaign win, as government agrees to consult on making council tax collection fairer

14 May 2025

Martin Lewis, Founder and Chair of the Money and Mental Health Policy Institute (and MoneySavingExpert) has welcomed a government pledge today to consult on making council tax collection fairer for people in debt.

Money and Mental Health’s Council Tax Trap campaign is urging the government to stop councils hounding people in this way over a missed payment.

Today Good Morning Britain picked up the charity’s campaign, including sharing a case study who said that bailiffs had been sent to his hospital bed in pursuit of a council tax debt.

In an interview on the show, Pat McFadden MP, Chancellor of the Duchy of Lancaster, announced that the government will launch a consultation on changes to make the council tax system fairer, saying: “We’re consulting on changing it, in particular this point of the system where if someone falls into arrears, they’re expected to pay the whole amount… we’re consulting on changing that so that there can be a reasonable amount of time over which people can pay their debt.”

After coming off-air, Martin Lewis recorded this quick reaction video, saying: “I’m a bit teary if I’m honest, in a good way, we just had a win that I wasn’t expecting… it’s amazing. I’ve just got off air after presenting Good Morning Britain. Along with the Money and Mental Health Policy Institute I’ve been campaigning on council tax debt collection since last November because it is the most vicious and aggressive and damaging form of debt collection there is out there.

“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.

“For so many people, council tax has been the tipping point that has destroyed their finances because of the aggressive way it’s collected. We had Pat McFadden, the Minister, on Good Morning Britain this morning, and he agreed to launch a consultation on this very soon to make council tax collection fairer, including giving people more time to pay. I cannot tell you how many desperate people I have met whose lives have been ruined by this form of debt collection. It’s only a consultation, but I’m hoping that this could be the start of changing things.”

Helen Undy, Chief Executive of the Money and Mental Health Policy Institute responded: “We are absolutely delighted that the Government has listened to sense and is taking the first steps towards making council tax debt collection fairer. It’s our second campaign win on this in a month, as the Welsh Government just launched a consultation on the same issue. We will be responding robustly to both, and hope to see people given more time to pay, and an end to the unreasonable charges being piled on top of already unmanageable debts. If the consultation delivers the change that’s needed, this really has the potential to transform lives.”

The research that underpins Money and Mental Health’s Council Tax Trap campaign was funded by abrdn Financial Fairness Trust.

ENDS

Contact:

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

The Money and Mental Health Policy Institute was set up by Martin Lewis in spring 2016, registered charity number 1166493.
It conducts research and develops policies for essential services firms, regulators, the health service and government to help people with mental health problems protect themselves from financial difficulties and get out of debt.
Martin Lewis OBE, Money Saving Expert, is an award-winning campaigning broadcaster, newspaper columnist and author. He founded MoneySavingExpert.com in 2003 for £100 and remains its full-time Editor-in-Chief. It is now the UK’s biggest money site, with more than 14 million monthly users. Martin has his own prime-time ITV programme – The Martin Lewis Money Show – and is resident expert on This Morning, Good Morning Britain and BBC Radio 5 Live’s Consumer Panel, among others.
Helen Undy is a passionate mental health campaigner and became the Institute’s Director in 2018, having previously led the Institute’s impact and communications work.