StepChange welcomes the Welsh Government’s consultation on council tax debt escalation

^{30 April 2025}

StepChange Debt Charity warmly welcomes the Welsh Government’s consultation on council tax reform, which intends to extend the threshold for which council tax arrears can be escalated to demand a yearly charge.

The consultation proposes lengthening the timeframe which currently sits at a minimum of 14 days, made up of 7 days from the issuing of a notice and a further 7 days if no payment is made. The consultation proposes extending this to a minimum of 62 days. 

Emily Whitford, Senior Public Policy Advocate at StepChange and author of Looking through the keyhole, said:

"At StepChange, we warmly welcome the Welsh Government’s consultation and proposals to reform council tax debt collection to better help those struggling to pay. Our client stats show that 39% of StepChange clients in Wales face council tax arrears at an average level of just over £2,000 – and a large minority of this group have a negative budget, meaning after going through a full debt advice and budgeting session, their monthly income is not enough to cover their basic costs.

"StepChange research shows that demanding a full year’s council tax liability after missing one payment drives people away from support and causes harmful coping actions like desperation borrowing. Rapid escalation of council tax debt pushes the most vulnerable into further financial hardship and it is out of step with responsible debt collection. The changes proposed by the Welsh Government would make a massive difference to people who fall behind by giving them longer to access support and agree a repayment plan to get back on their feet.

"After campaigning efforts to reform council tax alongside other coalition partners, this consultation marks a promising moment to reform government debt collection in Wales and set a new precedent for more compassionate collection. We are ready to work with the Welsh Government on making the proposed changes a success"