Debt Talk CIC welcomes the Government's consultation on improving council tax collection and enforcement. We believe this consultation presents an important opportunity to create a system that encourages engagement rather than enforcement and supports households experiencing financial hardship before debt escalates.
Debt Talk CIC is a Financial Conduct Authority-regulated debt advice provider working predominantly with Bangladeshi and other ethnically diverse communities in the London Borough of Tower Hamlets and the London Borough of Hackney. Our evidence is based on direct frontline experience supporting residents in negotiating affordable repayment arrangements, maximising their income, applying for Council Tax Support and discretionary reductions, and resolving complex debt problems.
Every year, we assist hundreds of households facing council tax arrears alongside wider financial difficulties. Our evidence is based on direct frontline experience supporting residents to negotiate affordable repayment arrangements, maximise their income, apply for Council Tax Support and discretionary reductions, and resolve complex debt problems.
Our experience demonstrates that the majority of residents in council tax arrears are not refusing to pay.
Instead, they experience barriers that prevent them from engaging effectively with local authorities. These barriers include limited English proficiency, low financial literacy, digital exclusion, poor mental health, disability, cultural factors, and misunderstanding of the council tax recovery process.
Current enforcement practices frequently interpret non-response as deliberate non-payment when communication difficulties, financial hardship or vulnerability more accurately explain it. By the time many residents seek help, court action has already commenced and additional costs have significantly increased their debt.
Debt Talk CIC believes that reform should focus on:
- Restricting the use of enforcement agents where households are assessed as experiencing financial hardship, with bailiff action reserved only for cases where there is evidence that engagement has failed despite the ability to pay.
- Earlier engagement with residents before enforcement begins.
- Plain English communication supported by community languages.
- Recognition of financial vulnerability through structured affordability assessments.
- Flexible repayment arrangements based on affordability.
- Stronger partnership working with FCA-regulated debt advice organisations.
- Greater consistency between local authorities.
- Improved access to Council Tax Support and discretionary relief.
These reforms would improve outcomes for both councils and residents by increasing engagement, reducing enforcement costs and supporting sustainable repayment arrangements.
