IMMEDIATE RELEASE
Money and Mental Health celebrates campaign win, as government agrees to make council tax collection fairer in England
15 April 2026
The Money and Mental Health Policy Institute – the charity founded and chaired by Martin Lewis (Money Saving Expert – quote from him below) – has welcomed important changes from the UK government to make council tax debt collection less rapid and aggressive in England.
As things stand, if you miss one council tax payment in England, within three weeks most councils demand that you pay your full annual bill – up to 12 times more than the original debt. The average annual household council tax bill in England in 2026-27 is £1,868
To make things even worse, some councils are also adding on extra charges for sending people a ‘liability order’ – a letter that lets them take much more aggressive forms of debt collection including sending in bailiffs. Currently there is no cap on these charges and some people have had to pay as much as £155.
Money and Mental Health has been campaigning to get the government to change this system, and today the government has responded by announcing the following changes:
- From April 2027, English councils will have to wait at least 63 days after a missed payment before demanding full repayment of a council tax bill
- Extra charges for a liability order will be capped at £100.
Martin Lewis, Founder and Chair of the Money and Mental Health Policy Institute and MoneySavingExpert, said:
“Council Tax debt collection is so aggressive it’d make banks blush. It’s the most vicious and damaging form of legal debt collection out there – causing counterproductive misery for millions. We’ve spent the last 18 months campaigning hard to change this hideous system, and having seen so much pain caused by it, I’m genuinely moved by this huge first step towards making things better.
“Currently, in England, if you miss a monthly payment, many councils, usually within three weeks, demand payment for the entire year. How people who can’t find a month’s money are expected to find a year’s I don’t know. Yet if they can’t pay, within just three more weeks, they are often taken to court, have ‘admin costs’ added, and soon see bailiffs sent in. No commercial firm would be allowed to do anything close – constituents are treated worse than customers.”
“The new rule from next April means councils must wait two months, not three weeks, to ask for a year’s money, and the ‘admin costs’ will be capped at £100. In a perfect world, it would be even longer and the lower cap would apply, but this is still a hugely welcome change to a 33-year-old process. For councils too, it is worth remembering that this grotesque system is often catastrophic for people’s finances and wellbeing, leaving many needing more help and support, and ultimately the same council having to pick up the pieces.”
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]
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