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Powys County Times
14-05-2025
- Business
- Powys County Times
Martin Lewis welcomes plans to consult on fairer council tax debt collection
Consumer champion Martin Lewis and charities have welcomed a Government pledge to look into making council tax collection practices fairer. Chancellor of the Duchy of Lancaster Pat McFadden told ITV's Good Morning Britain on Wednesday that a consultation will take place. On the programme, alongside presenter Susanna Reid, Mr Lewis contrasted council tax debts to situations where people owe money to financial firms. He said: 'When a financial services firm, a credit card firm, even a payday lender has debt, they have a Consumer Duty. Brilliant news. I'm quite emotional. Govt has agreed to investigate Council Tax rapid debt collection escalation that is catastrophic for millions. Miss one MONTH'S payment and within six weeks you can have baliffs forcing you to pay for the YEAR plus £100s admin charges.… — Martin Lewis (@MartinSLewis) May 14, 2025 'The Consumer Duty says they must look at what's in the consumers' interests first. 'It means if they're collecting 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. 'When it comes to council debt collection, it would make banks blush, it is so aggressive, and so rapid.' Mr McFadden said: 'Well, we're consulting on changing it, is the truth, and 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. 'So we're consulting on changing that, so that there can be a reasonable period of time over which people can pay their debt. 'I would hope that councils approach this with sympathy and understanding. They of course have a duty to try to collect the council tax because they need that to keep the services running, but when someone gets into difficulty I would hope that councils approach it with some sympathy.' Mr McFadden said the consultation will be put out soon and local government minister Jim McMahon 'will be in charge of this'. Mr Lewis said he is 'delighted' to hear about the consultation. Speaking to co-host Ms Reid about how council debts can rapidly escalate, he said: '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?' Mr Lewis founded charity 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 Mr Lewis later posted a video on X, in which 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.' Helen 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. 'It's our second campaign win on this in a month, as the Welsh Government just launched a consultation on the same issue. 'We will be responding robustly to both, and hope to see people given more time to pay, and an end to the unreasonable charges being piled on top of already unmanageable debts. 'If the consultation delivers the change that's needed, this really has the potential to transform lives.' StepChange Debt Charity also welcomed the announcement. A YouGov survey of more than 2,200 people for StepChange found that more than four-fifths (84%) oppose households having to pay their annual council tax bill in full if they miss one month's payment – a measure which the charity said is currently standard practice for many councils across England and Wales. StepChange chief executive Vikki Brownridge said: 'Our advisers hear day in, day out about the harmful impact of aggressive council tax debt collection, particularly on vulnerable households. 'As one of our core campaigns and key asks, we have been calling on the Government to review rules around imprisonment, rapid escalation of debt, and to ensure bailiffs are placed under proper regulation.' She added: 'We look forward to working closely with Government on this consultation, to ensure that people are protected from harmful debt collection which only serves to exacerbate hardship and worsen debt problems.' Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline said: 'Council tax debts can cause huge issues for people. They escalate quickly and far too many people in financial difficulty are ending up with bailiffs at their door. 'We are pleased that the Government is listening to our concerns and looking to making council tax collection fairer, including ending the situation where people become liable to pay their entire annual bill after missing just one or two payments. 'This would make a huge difference to people struggling to pay and we look forward to seeing the full detail soon.'
The Independent
14-05-2025
- Business
- The Independent
Emotional Martin Lewis welcomes changes to ‘aggressive' council tax practice
An emotional Martin Lewis has hailed the government's pledge to review 'aggressive' council tax collection practices. The MoneySavingExpert founder welcomed a government announcement of a consultation into making council tax collection fairer. Speaking on ITV 's Good Morning Britain, Mr Lewis highlighted the stark contrast between council tax debt collection and that of financial firms, who operate under a Consumer Duty. He criticised current council tax practices as "so aggressive, and so rapid, it would make banks blush". Chancellor of the Duchy of Lancaster, Pat McFadden, confirmed the upcoming consultation, stating Mr Lewis expressed his delight at the news, having campaigned extensively on the issue through his charity. In this video posted on X, a visibly emotional Mr Lewis shared his hope that the consultation marks a turning point for those impacted
Yahoo
14-05-2025
- Business
- Yahoo
Martin Lewis welcomes plans to consult on fairer council tax debt collection
Consumer champion Martin Lewis and charities have welcomed a Government pledge to look into making council tax collection practices fairer. Chancellor of the Duchy of Lancaster Pat McFadden told ITV's Good Morning Britain on Wednesday that a consultation will take place. On the programme, alongside presenter Susanna Reid, Mr Lewis contrasted council tax debts to situations where people owe money to financial firms. He said: 'When a financial services firm, a credit card firm, even a payday lender has debt, they have a Consumer Duty. Brilliant news. I'm quite emotional. Govt has agreed to investigate Council Tax rapid debt collection escalation that is catastrophic for millions. Miss one MONTH'S payment and within six weeks you can have baliffs forcing you to pay for the YEAR plus £100s admin charges.… — Martin Lewis (@MartinSLewis) May 14, 2025 'The Consumer Duty says they must look at what's in the consumers' interests first. 'It means if they're collecting 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. 'When it comes to council debt collection, it would make banks blush, it is so aggressive, and so rapid.' Mr McFadden said: 'Well, we're consulting on changing it, is the truth, and 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. 'So we're consulting on changing that, so that there can be a reasonable period of time over which people can pay their debt. 'I would hope that councils approach this with sympathy and understanding. They of course have a duty to try to collect the council tax because they need that to keep the services running, but when someone gets into difficulty I would hope that councils approach it with some sympathy.' Mr McFadden said the consultation will be put out soon and local government minister Jim McMahon 'will be in charge of this'. Mr Lewis said he is 'delighted' to hear about the consultation. Speaking to co-host Ms Reid about how council debts can rapidly escalate, he said: '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?' Mr Lewis founded charity 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 Mr Lewis later posted a video on X, in which 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.' Helen 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. 'It's our second campaign win on this in a month, as the Welsh Government just launched a consultation on the same issue. 'We will be responding robustly to both, and hope to see people given more time to pay, and an end to the unreasonable charges being piled on top of already unmanageable debts. 'If the consultation delivers the change that's needed, this really has the potential to transform lives.' StepChange Debt Charity also welcomed the announcement. A YouGov survey of more than 2,200 people for StepChange found that more than four-fifths (84%) oppose households having to pay their annual council tax bill in full if they miss one month's payment – a measure which the charity said is currently standard practice for many councils across England and Wales. StepChange chief executive Vikki Brownridge said: 'Our advisers hear day in, day out about the harmful impact of aggressive council tax debt collection, particularly on vulnerable households. 'As one of our core campaigns and key asks, we have been calling on the Government to review rules around imprisonment, rapid escalation of debt, and to ensure bailiffs are placed under proper regulation.' She added: 'We look forward to working closely with Government on this consultation, to ensure that people are protected from harmful debt collection which only serves to exacerbate hardship and worsen debt problems.'
The Independent
14-05-2025
- Business
- The Independent
Martin Lewis welcomes plans to consult on fairer council tax debt collection
Consumer champion Martin Lewis and charities have welcomed a Government pledge to look into making council tax collection practices fairer. Chancellor of the Duchy of Lancaster Pat McFadden told ITV's Good Morning Britain on Wednesday that a consultation will take place. On the programme, alongside presenter Susanna Reid, Mr Lewis contrasted council tax debts to situations where people owe money to financial firms. He said: 'When a financial services firm, a credit card firm, even a payday lender has debt, they have a Consumer Duty. 'The Consumer Duty says they must look at what's in the consumers' interests first. 'It means if they're collecting 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. 'When it comes to council debt collection, it would make banks blush, it is so aggressive, and so rapid.' Mr McFadden said: 'Well, we're consulting on changing it, is the truth, and 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. 'So we're consulting on changing that, so that there can be a reasonable period of time over which people can pay their debt. 'I would hope that councils approach this with sympathy and understanding. They of course have a duty to try to collect the council tax because they need that to keep the services running, but when someone gets into difficulty I would hope that councils approach it with some sympathy.' Mr McFadden said the consultation will be put out soon and local government minister Jim McMahon 'will be in charge of this'. Mr Lewis said he is 'delighted' to hear about the consultation. Speaking to co-host Ms Reid about how council debts can rapidly escalate, he said: '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?' Mr Lewis founded charity 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 Mr Lewis later posted a video on X, in which 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.' Helen 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. 'It's our second campaign win on this in a month, as the Welsh Government just launched a consultation on the same issue. 'We will be responding robustly to both, and hope to see people given more time to pay, and an end to the unreasonable charges being piled on top of already unmanageable debts. 'If the consultation delivers the change that's needed, this really has the potential to transform lives.' StepChange Debt Charity also welcomed the announcement. A YouGov survey of more than 2,200 people for StepChange found that more than four-fifths (84%) oppose households having to pay their annual council tax bill in full if they miss one month's payment – a measure which the charity said is currently standard practice for many councils across England and Wales. StepChange chief executive Vikki Brownridge said: 'Our advisers hear day in, day out about the harmful impact of aggressive council tax debt collection, particularly on vulnerable households. 'As one of our core campaigns and key asks, we have been calling on the Government to review rules around imprisonment, rapid escalation of debt, and to ensure bailiffs are placed under proper regulation.' She added: 'We look forward to working closely with Government on this consultation, to ensure that people are protected from harmful debt collection which only serves to exacerbate hardship and worsen debt problems.'
Yahoo
14-05-2025
- Business
- Yahoo
FCA unveils plans to remove ‘outdated or duplicated' insurance rules
The City regulator is proposing to strip 'outdated or duplicated' requirements from its insurance rules, to help reduce costs for firms and encourage competition in the sector. The Financial Conduct Authority (FCA) said the UK's insurance market could benefit from simpler, more straightforward requirements. Proposals include no longer requiring companies to review the value of their product at least every 12 months; instead, they would use the risks and characteristics of each product to decide how often they review them. The regulator also plans to give firms flexibility to appoint one lead insurer to comply with its rules in situations where more than one party is involved in designing the insurance product. Specified minimum hours of training and development required for insurance and funeral plan employees would also be removed under the proposals. Changes could support lower costs and wider access for the businesses and consumers who rely on insurance to manage risk, while maintaining appropriate levels of protection, the regulator said. It is also proposing to create a new definition to identify big commercial insurance customers who should not be captured by its conduct rules. This would ease the burden on firms insuring larger businesses that can manage risks independently, while protecting smaller commercial customers, the FCA said. The consultation document said: 'Given the global nature of the commercial market, it is important that our rules deliver proportionate regulation that promotes effective competition. 'We also want to ensure that our rules advance our secondary objective to facilitate the international competitiveness and growth of the UK economy, as far as reasonably possible.' Matt Brewis, director of insurance at the FCA, said: 'We are stripping back our insurance rule book by removing ineffective, outdated or duplicated regulation, as part of our drive to become a smarter regulator and support growth. 'We have listened to industry and we are taking action. In doing so we will reduce regulatory costs and increase the competitiveness of the already world-leading UK insurance sector, while maintaining vital protections for smaller customers.' The consultation follows the FCA's commitment to withdraw more than 100 pages of 'outdated' guidance in a bid to streamline rules, reduce burdens on businesses, and improve outcomes for consumers after the introduction of the Consumer Duty. The Consumer Duty requires financial firms to put customers at the heart of what they do, including in the design of their products and in their communications with customers. The UK Government has put emphasis on streamlining regulations as part of its drive for economic growth. The FCA wants to hear feedback on the proposals by July 2 2025. David Otudeko, director of regulation at the Association of British Insurers (ABI), said: 'The overly complex regulatory system has long been a concern for the industry. The FCA's focus on easing some of this burden, to simplify rules and create a more straightforward system, is welcome. 'We look forward to continuing to work with the FCA throughout its consultation process to achieve the right balance between consumer protection, economic growth and market integrity, and help our members ensure good outcomes for customers.'
