Martin Lewis says little-known council tax rule is 'destroying' UK households
Martin Lewis has issued a major warning over unpaid Council Tax bills. Addressing the issue on his latest ITV show, Lewis posted on X: “Miss one Council Tax monthly payment and within three weeks they can make you pay for the whole year!
“My response after listening to a case study who’s finances were wrecked by this.” In the clip, Mr Lewis said: “This affects millions of people. I want to know why councils think somebody who struggles to pay for their council tax monthly can pay for the entire year in one.” Mr Lewis said: “How does that help somebody’s finances? It is counterproductive – they are destroying people’s long-term financial goals.
“It’s bad for the individual, it’s bad for the economy, it’s bad for the NHS.” A spokesperson for the Local Government Association, which represents 315 councils in England and all 22 unitary authorities in Wales, said: “Councils strive to ensure they have fair council tax collection policies and should always try to work with people who are struggling to meet their council tax bills.
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“We agree that bailiffs should only ever be used as a last resort.” Councils with social care duties can raise council tax every year by up to 4.99%, without triggering a referendum. Others can increase it by up to 2.99%.
The County Councils Network previously predicted that 75% of councils would introduce the maximum increase in April 2024. The average increase for a band D property in England for 2024-2025 will be £106, taking bills up to £2,171, external. The average rise in April 2023 was £99, external.
Councils can increase bills by more than 5% without a referendum if they have government permission. You could be eligible for a Council Tax reduction if you or someone in your household is severely mentally impaired. To apply, you'll need to obtain a certificate from a medical professional, such as your GP, confirming severe mental impairment or provide proof of eligibility for certain benefits – it's best to consult your local council for the specifics.