Martin Lewis' urgent council tax warning that could cost you £1,500
Martin Lewis has issued an important warning to all council tax payers across the country.
The Money Saving Expert warned missing a single month’s council tax payment could mean that you’re forced to pay your full annual bill - which is often over £1,500 - within the space of a few weeks.
The warning came as he launched a new campaign to push for a change in council tax debt collection policy. The Money and Mental Health Policy Institute, a charity founded by Mr Lewis, published figures that reveal a daunting pathway from debt to despair for many people.
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Under current legislation, anyone missing a single instalment can be required to pay their full annual council tax bill, which is typically just over £1,600. For those with mental health problems, Mr Lewis warned things can spiral into far more than a financial meltdown.
In a post shared on X, formerly known as Twitter, Martin Lewis said: “Warning: Miss one month’s council tax payment and it could ask you to pay the whole year bill within weeks. Council tax debt collection is far worse than finance firms. It’s destructive especially for those with mental health issues. My speech at @MMHPI campaign launch.”
Explaining further in a five-minute long video which accompanied the tweet, Mr Lewis criticised the ‘grotesque’ methods authorities use to recover council tax and urged the Government to change the law on debt collection.
He said: “The idea that you miss one month of council tax and within a week your council - your elected officer is not there saying ‘How can we help? How do we support you? What can we do about your finances? How do we point you in the right direction?’ Instead, they ask for a whole year's payment. That’s how council tax debt collection works. Within five weeks of that, they can send the bailiffs in.”
He went on to explain that the central government regulation allows councils to collect debts in this way. He added: “We need to slow this down and put a better duty of care in place.”
He branded the council tax system “out of date” and said that it is “not the way council’s should be treating their constituencies” and could have “crippling” impacts on people’s finances. The new research shows that around 10 per cent of people with mental health problems are behind with council tax. That’s compared with around 4 per cent of the general population.
The Money and Mental Health Policy Institute’s new campaign is calling on the Government to bring council tax debt collection at least in line with consumer creditors, who often wait three to six months before demanding full repayment of an overdue debt.
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