Latest news with #MoneyandMentalHealthPolicyInstitute
New Statesman
a day ago
- Health
- New Statesman
Revealed: Labour's welfare cuts will take people out of work
Photo byThe government's disability benefit cuts would force people out of work or to reduce their working hours, according to new research by the Money and Mental Health Policy Institute – the charity led by Martin Lewis, the consumer champion. Labour's plans to tighten assessments for the personal independence payment (PIP) will affect around 800,000 claimants. The benefit, designed to help people with disabilities and chronic mental and physical conditions live an independent life, is currently paid to more than 3.6 million people. Ministers insist their welfare reforms will bring more people 'back into work'. But nearly two thirds of working people receiving PIP surveyed by the charity said they would need to reduce or give up work without the payments. Reasons cited include the impact losing the benefit would have on their mental health, and practical considerations such as covering the transport costs of travelling to work. 'PIP pays for [my] private therapy… which keeps my mental health at a functioning level,' one respondent told the researchers. 'Without these I doubt I could even manage the permitted work hours (14 hours per week) that I do.' 'PIP has allowed me to get a job where I work 12 hours a week,' another claimant said. 'This has helped with getting me out of my house and helped with my depression… PIP allows me to go to my job, get to appointments, get out to see family and friends.' People losing their PIP who were surveyed said they expect to significantly reduce their spending – including 77 per cent saying they would have to limit their spending on public transport, 87 per cent on private transport (such as taxis), 82 per cent on clothing and other essentials, 81 per cent on personal care, and 70 per cent on child-related costs – all essential parts of a functioning work life. The income shock of losing PIP under the proposed reforms would cause a 'terrifying triple whammy' of financial hardship, worsening mental health and reduced capacity to work for many people with mental health problems, according to the researchers. Claimants surveyed stand to lose £3,850-£5,750 a year if the cut goes ahead. Nearly all – 97 per cent – of respondents said the PIP changes would have a 'significant negative impact' on their mental health. Subscribe to The New Statesman today from only £8.99 per month Subscribe 'The government says its welfare reforms will help more people move into work. But you don't do that by depriving people of a critical financial lifeline that helps them stay well,' said Helen Undy, chief executive of the Money and Mental Health Policy Institute. 'Our analysis shows that these changes would actually result in many people with mental-health problems who have a job cutting their hours or leaving the workplace altogether. We urge the government to ditch these plans.' Adding ever-more restrictions to the welfare system to boost employment sounds logical, but it doesn't play out this way in the real world. As I have written before, the Department for Work and Pensions' fixation with cranking up 'conditionality' (the requirement to meet certain demands to avoid having your benefits docked) over successive governments has had little effect on working hours. While the number of claimants subject to conditionality has more than doubled since 2013, the evidence for its effect on working hours is 'inconclusive', according to the Resolution Foundation, a living standards think tank. Instead, with each harsher measure, working and non-working people are losing the support they need to live full and functional lives. A former DWP adviser once told me that, at best, 'harsh and prescriptive conditionality… pushes people into low-paid and insecure work, which is a poor outcome for them but also means they're likely to continue to need support to top up their incomes'. Martin Lewis, known as the Money Saving Expert, has spent his career pursuing value for money. He knows a false economy when he sees one. A government spokesperson said: 'The majority of people who are currently getting PIP will continue to receive it. Our reforms will help sick or disabled people move out of poverty and into good, secure jobs, while ensuring the social security system will always be there for those who will never be able to work. 'We are consulting on how best to support those impacted by the new eligibility changes, and have also announced a review of the PIP assessment, working with disabled people and key organisations representing them to consider how best to do this.' [See also: How the weather changed on the 'cruel' two-child benefit cap] Related
Daily Record
15-05-2025
- Business
- Daily Record
New Council Tax rules for people in Scotland who miss a single monthly payment
Some councils can now seize benefits and take other actions to recover the owed payments. The UK Government has announced a consultation on the Council Tax debt collection process in England following calls from consumer champion Martin Lewis and the Money and Mental Health Policy Institute charity, which he founded. However, people in Scotland may not be aware that new rules introduced last month now allow councils to take more rapid enforcement action to recover non-payments. West Dunbartonshire Council has already implemented the new policy. Martin Lewis highlighted how missing just one monthly Council Tax payment can result in a demand for the full annual bill - this is also the case in Scotland. The financial guru called for change arguing that if someone can't afford the monthly payment, how can they possibly find the money to pay for the full year. Every local authority across Scotland has increased annual Council Tax bills for the 2025/26 financial year, with first payments due by the end of last month. If you missed that payment, contact your local council as soon as possible and explain your circumstances, they may be able to help. Under its new 2025/26 financial year rules, final Council Tax notices will no longer be issued to those who miss a payment, with only a single reminder notice sent, requiring action within 21 days. Anyone who fails to comply will lose their right to pay by instalments, meaning they will owe the full-year balance. The council will then make an application to the Sheriff Court to obtain a summary warrant, including a 10 per cent financial penalty, without any further notification. Advice Direct Scotland, which runs the free service, said stricter recovery policies are likely to have the biggest impact on vulnerable people. The charity revealed last month some households were already facing Council Tax debts of up to £15,000, before the April increase. Advice Direct Scotland are urging Scots struggling to pay their Council Tax bills to get help, before missing any payments or increasing existing debt. The charity is also aware of other Scottish councils moving more quickly to recover debt, with those who are already struggling with energy and living costs most likely to be affected. Advice Direct Scotland is able to support anyone affected by Council Tax recovery changes, and can guide worried households through the process if they miss a payment. Council Tax arrears are a 'priority debt', meaning they should be addressed before other debts to avoid harsher enforcement measures, such as bank or wage arrestment. Councils can seize benefits and take other actions to recover the owed payments, risking the loss of homes or tenancy agreements if left unresolved. Advice Direct Scotland urges anyone who has missed a payment to contact their council immediately and request to pay in smaller amounts, rather than waiting to be contacted. John Baird, head of debt services at Advice Direct Scotland, said: 'Any changes to the recovery process for missed Council Tax payments are most likely to affect people who are already struggling to pay their bills. The removal of final notices and the swift progression to summary warrants, including a 10 per cent penalty, could have serious implications for some. 'It is understandable that councils want to streamline the recovery process, but it is crucial that they also consider the potential consequences for individuals facing financial hardship. These new systems may lead to increased stress and worry, particularly for those who are unable to pay within the 21-day window or negotiate alternative payment arrangements.' He added: 'We urge local authorities to ensure adequate support and clear communication is provided to residents, especially those in poverty, to help them navigate these changes and avoid severe penalties. Our team is here to help anyone who is struggling, regardless of their personal circumstances, so please reach out and contact us.' Experts are available at or on 0808 196 2316. The charity is also reminding people on low incomes to check if they qualify for a reduction on their Council Tax bill. The latest figures from the Scottish Government show 458,470 recipients were eligible for Council Tax Reduction in December 2024, saving an average of over £850 a year. The data indicates one-in-five households are being supported through the scheme, which is not available anywhere else in the UK. Only people on a low income and resident in Scotland may be eligible for a Council Tax Reduction, which also provides successful claimants with up to 35 per cent off their water and waste charges. While the Council Tax Reduction scheme mostly supports households on a lower income, help is also available for middle-earners or people finding it difficult to keep up with payments - especially those on a higher band. To find out about getting help with your Council Tax, contact your local authority and explain your financial situation, they may be able to put your account on 'hold' and agree the next payment date, giving you a bit of breathing room to get back on track. Below is a quick guide on how to check your Council Tax bill and a list of circumstances which could see you paying less each month. Check if you could be exempt from paying Council Tax You will not pay Council Tax if: You are a full-time student You are in the Armed Forces in Forces accommodation You live in a care home or hospital Your home is unoccupied and empty (up to six months) - for example, if you've gone into hospital You have a severe mental impairment (e.g. dementia) - if you only live with someone who has dementia, then you'll be treated as a sole occupant as they will be disregarded, but you won't both be exempt Could you be eligible for a discount on your Council Tax bill? There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances. If you live alone The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount - you could get a 25 per cent reduction, regardless of your financial circumstances. If you live with someone under 18 or a student Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees. If you are a carer Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria. Just be aware, this doesn't apply if the person receiving care is the partner of the carer, or is the carer's child aged under 18. If there are major changes to the value of your home You may be able to get your home moved to a lower band if it has decreased in value. For example, if you have made home adaptations for a disabled person, or if a motorway has been built nearby. You may also get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis. If you change the way you pay Although the total year's amount will stay the same, you can request your bill be split over 12 months instead of 10, so you can spread the cost and reduce your monthly outgoings. Alternatively, if you can afford to pay the whole bill in one lump sum, check with your local council if you can get a discount. Apply for Council Tax Reduction You may be eligible to claim a Council Tax Reduction if you're on a low income or claiming certain benefits. You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you're working or unemployed. Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary. The amount you will get depends on many factors, including: Which benefits you receive Your age Your income Your savings Who you live with How much council tax you pay You may get more Council Tax support if you receive a disability or carers benefit. If you receive the Guarantee Credit Part of Pension Credit you may even get your Council Tax paid in full. If you don't have it, but are on a low income and have less than £16,000 in savings, you may still get some help. Local councils Contact your local council from the list below to apply for a Council Tax Reduction or discount. Inverclyde Renfrewshire West Dunbartonshire East Dunbartonshire Glasgow East Renfrewshire North Lanarkshire Falkirk West Lothian Edinburgh Midlothian East Lothian Clackmannanshire Fife Dundee Angus Aberdeenshire Aberdeen Moray Highland Na h-Eileanan Siar Argyll and Bute Perth and Kinross Stirling North Ayrshire East Ayrshire South Ayrshire Dumfries and Galloway South Lanarkshire Scottish Borders Orkney Shetland
Rhyl Journal
14-05-2025
- Business
- Rhyl Journal
Martin Lewis welcomes plans to consult on fairer council tax debt collection
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.'
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.'
North Wales Chronicle
14-05-2025
- Business
- North Wales Chronicle
Martin Lewis welcomes plans to consult on fairer council tax debt collection
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.'
