Martin Lewis has issued a warning that missing just one council tax payment could lead to being forced to pay the full year’s bill within weeks, risking financial hardship for many
Martin Lewis has issued a stark warning to homeowners about the potential financial devastation of missing just one council tax payment.
In a clip from Martin Lewis Money Show Council Tax cost cutting special on ITVX posted to the official MartinLewisMSE TikTok account, Lewis revealed how missing a single monthly payment could result in being forced to pay the entire year’s bill just weeks later. And it’s not just the financial impact he’s concerned about – he’s highlighting how this aggressive approach to debt collection by local councils could wreck people’s lives.
In the TikTok, Martin brings out a box with the word “SOAP” written on it before standing on top of it to make his passionate point. The message was clear: if people struggle to make their monthly council tax payments, the system is not offering them a reasonable chance to get back on track. Instead, it’s creating a “vicious cycle” of financial hardship.
He explains: “How does that help someone’s finances? It is counterproductive, it is destructive even if you do not have mental health problems,” adding that it doesn’t just hurt the individuals involved but has a far-reaching effect on the wider economy.
The crux of his message was the speed at which councils can demand full payment once a person misses a payment. According to Lewis, within just three weeks of a missed council tax payment, a resident can be forced to pay the full year’s bill. This, he argues, is not only unjust but damaging.
As Martin continues, “It is bad for the individual and it’s bad for the council debt collecting, it’s bad for the economy and it’s bad for the NHS.” He points out that while commercial debt collectors are required to treat people fairly and allow time for repayment, councils act much more swiftly, with little room for financial rehabilitation.
Lewis goes on to explain how, by week four, a person can be served with a court summons demanding the full year’s council tax, along with extra charges purported to be for administration – charges that, according to Lewis, are often disproportionate. By week six, the situation could escalate further, with bailiffs sent to collect the full year’s outstanding bill. The entire process, he argues, is fast-tracked in a way that would be unimaginable for any commercial debt collector. “A commercial debt company couldn’t do that,” Lewis says. “They have to treat you fairly. It would take six months, not three weeks.”
His frustration is clear on screen as he makes his impassioned speech, and he calls on local councils to rethink their approach to debt collection. “I would say to all local councillors out there, ask how your council does its debt collection. Is that the right way to treat your constituents?” Lewis questions.
The MoneySavingExpert advocates for a more compassionate system that allows people time to get back on their feet and suggests a system similar to the Breathing Space scheme, which offers people time to rehabilitate their finances. Finally, he issued a plea to the central government: “We need to put the same onus on councils as we do on commercial lenders to treat people fairly.”
