There are potential changes on the way to help people who are
struggling to pay their council tax bill on time.
The changes aim to help prevent people from becoming trapped in
cycles of persistent debts by improving engagement between
councils and residents and making the collection process clearer.
At the moment, missing a council tax payment means people can
become liable for the full annual bill if they don't pay within
seven days of receiving a reminder, and the requirements on
councils for sending reminders and final notices are too complex.
The changes, which are under consultation, will give people more
time to recover from unexpected financial setbacks, the chance to
get advice and allow for improved communication between councils
and residents.
Council tax provides essential funding of over £2.8 billion for
local services including schools and social care. The current
system successfully collects over 96% of council tax routinely
year after year, and help is available for people to meet their
tax obligations.
People struggling to pay council tax should contact their council
and free advice services, available through the Welsh
Government's Single Advice Fund and Claim What's Yours
campaign, as early as possible to prevent spiralling debts.
The 12-week consultation is now underway.
Cabinet Secretary for Finance and Welsh Language, , said
“We have delivered a number of improvements to council tax in
Wales to make it fairer. Our latest proposed changes focus on the
prevention of escalating debts, by providing local councils with
more time to engage with people who have missed a payment, to
understand their circumstances and offer support before going
ahead with recovery action.
“I know councils want to help wherever possible, and we will
spread the best practice we have seen through this fairer
framework. This will help councils differentiate between people
who are struggling and those who are persistently disengaging. A
longer timeframe also allows households to recover from
unexpected events or circumstances that may have contributed to
their financial struggles.”
Notes to editors
The framework for council tax collection and enforcement is set
out in the Council Tax Protocol
and the Council Tax (Administration and Enforcement) Regulations
1992. This consultation seeks views on procedural elements of
Reminder Notices, Final Notices, prescribed time periods and best
practice guidance.
The consultation proposes that everyone who misses a council tax
payment should receive a Reminder Notice each time, and then a
Final Notice if the council wishes to proceed with recovery
action, as existing practice is variable and the legislative
requirements are ambiguous.
The consultation also proposes lengthening the timeframe between
a person missing a council tax payment to becoming liable to pay
the full annual balance. Currently this is a minimum of 14 days,
made up of 7 days from the issuing of a Reminder Notice and
a further 7 days if no payment is made. The consultation proposes
lengthening this to a minimum of 62 days, made up of 41 days
following the missed payment to receive a Final Notice, and a
further 21 days in which to pay. On day 63 if no payment
has been made the person will be liable to pay the full amount
and one day later the council can proceed with recovery action.
Within that timeframe, the consultation proposes creating
guidance to ensure councils, where possible, check a person's
eligibility for the Council Tax Reduction Scheme or other
discounts, signpost to debt advice services, and consider
offering alternative payment arrangements.
