Martin Lewis Calls Council Tax the 'Most Vicious Debt in Britain' — Here Is Exactly What Happens If You Miss a Payment

Martin Lewis founder of MoneySavingExpert and campaigner reacts to new council tax reforms by the government.

Martin Lewis and Government Officials React to Change?

Lewis appeared on ITVs Good Morning Britain to praise the governments decision to reform the council tax system. 'The problem is all about this time schedule. Three weeks in three weeks; so when I was talking about 63 days in three weeks that starts next April...this does not come into today so this is going to take time it comes in at the start of April next year,' Lewis said.

In a Press Release from the government announcing the new council tax reforms, 'The new rule from next April means councils must wait two months, not three weeks, to ask for a year's money, and the 'admin costs' will be capped at £100,' Lewis said.

'In a perfect world, it would be even longer and the lower cap would apply, but this is still a hugely welcome change to a 33-year-old process,' Lewis continued. 'For councils too, it is worth remembering that this grotesque system is often catastrophic for people's finances and wellbeing, leaving many needing more help and support, and ultimately the same council having to pick up the pieces.'

'Under the current system, missing one monthly payment can leave people facing financial ruin as they become liable to pay the entire outstanding sum in a single payment just two weeks later.'

Local government officials also reacted to the news.

'Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month's council tax bill was missed, Local Government Secretary Steve Reed said.

'We will stop this and make the system fairer by supporting families who fall behind.'

What Are the New Council Tax Rules?

'This will change from next year with households given 63 days, roughly two months, to settle their bill and a requirement for councils to work with them on a sustainable repayment plan,' the press release said.

'Billing for council tax will also be shifted to 12-month payments by default, rather than the current 10 months, and capping the costs which councils can charge when seeking a liability order – how councils recover overdue bills – to £100.'

'Ministers have today (April 15) confirmed changes will be made to the administration of bills, which have been left unchanged since 1993 and have become outdated and left people facing unnecessary stress and anxiety.'

'The government will also update the name and definition of the Severely Mentally Impaired council tax discount when parliamentary time allows, removing the stigma that puts off vulnerable people from seeking the support they are entitled to.'

The new rules begin in April of 2027.

Council Taxes Still Rise This Year

'In England, most councils were permitted to raise council tax by just under 5%.'

'Rises in Scotland were larger in 2026, which was the second year when local authorities were able to raise council tax after years of freezes. That has seen bills increase by up to 10% in some areas, such as Aberdeenshire.'

'Welsh households saw an average increase of 4.9%, although some areas have seen bigger hikes,' according to the Big Issue.