The campaigners have urged the government of the UK to go the extra mile in its reformation of the council tax debt regulations, and call on the ministers to impose an outright ban on bailiffs, even after the recent reforms, which were welcomed by Martin Lewis.
After the growing criticism of aggressive ways of collecting council tax, the government has announced a set of changes to achieve fairness in its collection. With the existing system, families that fail to pay one monthly payment can soon be expected to pay their entire annual bill, with additional charges and bailiff action threats.
The reforms, which will be informed by the advocacy of the Money and Mental Health Policy Institute, will provide people with more time to repay their outstanding payments and persuade councils to reach an agreement on repayment plans they can manage. According to ministers, the measures aim to alleviate financial strain on struggling families and avoid the rapid growth of debts.
Although the changes have been said to be a huge step in the right direction, campaign groups such as Debt Justice have expressed that it is not enough. They are now lobbying to have a complete prohibition on the use of bailiffs in collecting council tax debt recovery, saying enforcement visits would cause distress and intimidation, as well as extra financial burdens.
The studies campaigners point to indicate that over a million bailiff actions are undertaken annually on council tax arrears, frequently with the addition of huge sums of money as fees to preexisting debts. Critics claim that this unfairly targets low-income households and individuals with mental health issues, and has little evidence of increasing repayment rates.
Long-time critic Lewis has referred to the collection of council tax as one of the worst forms of debt collection in the UK. Even though he has received the recent reforms by the government, with the latest reforms as a big first step, he has also said that more reforms might be necessary to ensure that the vulnerable people are adequately safeguarded.
The new proposals will mean that families will be given up to 63 days to clear their outstanding payments before a tougher action can be taken, as opposed to a few weeks under the old regulations. Councils will also be required to provide support and communication before case escalation.
This development notwithstanding, activists believe that until the bailiffs are removed, a great number of individuals will be subjected to unwarranted fear and stress. They say that a fairer system must look at early intervention, available debt advice and repayment solutions based on sustainability and not enforcement.
The government has indicated that it is still determined to make the collection of council tax more open and humane, although it has not indicated that it is considering a total ban on bailiffs. In the meantime, there is mounting pressure to make further reforms as the question of fairness and accountability is debated.