A serious shake-up to how council tax is billed and picked up is on the playing cards, and it might be nice information for working households, these on tight budgets, and anybody who’s ever been stung by an unfair penalty for falling behind.
If you happen to’ve ever questioned why lacking one council tax cost means your council all of the sudden calls for the entire 12 months upfront, or why your invoice shoots up simply if you’re getting again on observe, then this one’s for you.
Right here’s what’s altering, why it issues, and what to look out for.
Council tax modifications
Proper now, council tax payments are usually unfold over 10 months (April to January), with a two-month break in February and March. When you can ask to pay over 12 months, it’s not the default.
The Authorities desires to vary that.
Below the brand new proposals, 12-month funds would develop into the usual which may help unfold the fee extra evenly, making it simpler to finances month to month.
For the typical Band D family, this might imply round £38 much less per 30 days, easing the squeeze throughout powerful occasions.
And for those who’d favor the 10-month choice to be paid up sooner, that’ll nonetheless be out there too.
Cracking down on unfair council tax debt restoration
Miss a single cost and all of the sudden owe the lot?
That’s how the present system works in lots of locations, and it’s brought about main stress for numerous households.
The Authorities is now taking a look at:
- Stopping the “pay the total 12 months” rule from kicking in so rapidly.
- Capping the additional prices councils can add when your debt is taken to courtroom.
- Reviewing how and when bailiffs are used, particularly the place persons are already susceptible or struggling.
This transfer has been backed by Martin Lewis and the Cash and Psychological Well being Coverage Institute, who’ve campaigned for over a decade to cease aggressive council tax assortment that hits individuals after they’re already down.
Assist might be made easier and clearer
Some assist already exists, like reductions for individuals with sure medical situations or these on low incomes, however a lot of it’s hidden in crimson tape or makes use of complicated language.
For instance, the “Extreme Psychological Impairment” low cost may get a brand new identify and a less complicated strategy to apply, so extra people who find themselves eligible can really entry it.
The principles for care employees and apprentices are additionally underneath evaluate to see if extra individuals may get reductions.
Additionally see: How lengthy can somebody keep earlier than paying Council Tax?
And to spice up transparency, there are plans to obviously clarify what council tax really pays for, one thing that would assist individuals really feel a bit higher about forking it out.
Might you be within the flawed council tax band?
Whereas revaluing council tax bands isn’t a part of this explicit reform, the Authorities says it desires to make it simpler to problem a band for those who assume your own home’s been wrongly positioned.
Some properties haven’t been correctly assessed since 1991 (sure, actually), so a whole bunch of 1000’s of individuals is likely to be paying an excessive amount of with out realising.
What this all means
These proposed modifications are a part of the Authorities’s wider “Plan for Change”, aimed toward supporting working individuals and fixing damaged methods that punish those that fall behind.
In the event that they go forward, the modifications may:
- Make budgeting simpler
- Scale back the chance of spiralling debt
- Enhance entry to assist
- Assist make council tax really feel much less like a entice and extra like a good contribution
The session is now dwellwhich suggests these modifications aren’t legislation but, however the truth they’re being significantly checked out (with main voices like Martin Lewis behind them) means there’s actual hope.
Ultimate thought
Council tax has been caught within the 90s for too lengthy. This shake-up might be a long-overdue win for equity, simplicity, and a little bit of respiration room for households feeling the strain.
If you happen to’ve ever been caught out by the present system, or know somebody who has, regulate this session and share the information. Actual change may lastly be on the best way.
