Finance journalist Martin Lewis became "a bit teary" over the Government's pledge to consult on making council tax collection practices fairer - a move welcomed by debt charities.
Chancellor of the Duchy of Lancaster Pat McFadden confirmed this consolation will take place while appearing on Good Morning Britain (GMB) yesterday.
Under the current system, local authorities can demand a full year's payment if a resident misses just one monthly instalment within six weeks.
This approach has been criticised as being more aggressive than those used by financial firms, with Lewis stating that council debt collection "would make banks blush".
Martin Lewis is reacting to the Labour Government's action into council tax debt collection
GETTY / MARTIN LEWIS X ACCOUNT
The host of The Martin Lewis Show Live contrasted council tax debts with those owed to financial firms, which operate under a Consumer Duty requiring them to consider consumers' interests first.
"When a financial services firm, a credit card firm, even a payday lender has debt, they have to signpost them towards help, go through it gradually, and it would take six months to a year before they could throw bailiffs in," he explained.
"You miss a monthly payment and within three weeks they can ask for the year's payment, which begs the question: How can someone who can't afford a month's payment pay for a year's payment?"
During his GMB appearance, McFadden revealed that the Government is "consulting on changing" the current system to relief these pressures.
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Pat McFadden MP has confirmed the Government has launched a consultation into debt collection
GB News"In particular this point of the system where, when somebody falls into arrears, they're expected to pay the whole amount that's obviously very difficult for people," he said.
The consultation will look at allowing "a reasonable period of time over which people can pay their debt" with Local Government Minister Jim McMahon being "in charge of this", McFadden added.
He acknowledged councils have "a duty to try to collect the council tax" but hoped they would approach difficulties "with some sympathy".
Lewis expressed delight at the consultation announcement, later posting a video on X where he revealed his emotional response.
He said: "I'm a bit teary if I'm honest I cannot tell you how many desperate people I have met whose lives have been ruined by this form of debt collection. It's only a consultation, but I'm hoping that this could be the start of changing things."
Lewis founded the Money and Mental Health Policy Institute which has been running a "council tax trap" campaign urging change on the issue, as well as consumer help website MoneySavingExpert.com.
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Households have been saddled with expensive council tax bills in recent years
GETTYHelen Undy, chief executive of the Money and Mental Health Policy Institute, said: "We are absolutely delighted that the Government has listened to sense and is taking the first steps towards making council tax debt collection fairer."
She noted it was their "second campaign win on this in a month" as the Welsh Government recently launched a similar consultation.
StepChange Debt Charity also welcomed the announcement, with chief executive Vikki Brownridge saying: "Our advisers hear day in, day out about the harmful impact of aggressive council tax debt collection, particularly on vulnerable households."
A YouGov survey of more than 2,200 people for StepChange found that more than four-fifths (84 per cent) oppose households having to pay their annual council tax bill in full if they miss one month's payment.
