Government signals council tax enforcement reform

This morning on Good Morning Britain, Pat McFadden MP, Chancellor of the Duchy of Lancaster, announced that the UK Government will launch a consultation to make council tax collection fairer for people in debt.

The announcement marks a significant win for the Council Tax Trap campaign, led by the Money and Mental Health Policy Institute (MMHPI) and fronted by its founder Martin Lewis. The campaign has called for urgent reform to council tax enforcement, which currently allows local authorities to demand a full year’s payment after a single missed instalment — often followed by court proceedings and the use of bailiffs just weeks later.

Martin Lewis described the current approach as “the most vicious and aggressive and damaging form of debt collection there is out there”. This morning, visibly moved on air, he called the government’s commitment a “win I wasn’t expecting” and “the start of changing things”.

Here at Debt Free Advice and Toynbee Hall, we know how urgently reform is needed. Our 2023–2025 Impact Report shows that council tax arrears are now the most common debt issue among the Londoners we support, affecting over 51% of our clients. Many of those individuals are already dealing with poor health, insecure housing, or mental distress — and the escalation of council tax debts only makes things worse.

Matt Dronfield,  Director of Advice Services at Toynbee Hall, said:

“This announcement is a turning point. Council tax arrears are pushing thousands into crisis every year — and the way they’re collected often makes things worse, not better. I’m incredibly proud of the work that MMHPI and Martin Lewis have done to bring this issue into the national spotlight. The current rules can devastate people’s lives after a single missed payment. Reform isn’t just overdue — it’s essential. We’ll be engaging closely with the consultation and continuing to make the case for a more humane, preventative approach.”

We understand how much financial pressure people are under today, especially when it comes to council tax, so this is a very important for us and what we do here at Debt Free Advice and Toynbee Hall. We hope to continue our work providing people with free debt advice and campaigning for reform to keep on achieving moments like these.