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, Mark Drakeford, 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.”
