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Politics
01 May 2025

Welsh Government Seeks To Reform Council Tax Enforcement

New proposals aim to support struggling households and prevent debt escalation

The Welsh Government has launched a 12-week consultation aimed at reforming council tax enforcement practices, focusing on providing better support for households struggling to meet their financial obligations. Announced by Mark Drakeford, the Cabinet Secretary for Finance and Welsh Language, the proposed changes seek to prevent individuals from falling into cycles of persistent debt by enhancing communication between councils and residents.

Currently, if a council tax payment is missed, individuals can become liable for their full annual bill within just seven days of receiving a reminder. This system, described as outdated and unhelpful, can lead to rapid escalation of debt for those who may be facing unexpected financial setbacks. The consultation aims to give residents more time to recover and seek advice before harsher enforcement actions are initiated.

Council tax is a significant source of funding for local services in Wales, contributing over £2.8 billion annually to essential services such as schools and social care. Despite the current system achieving a collection rate of over 96%, the cost-of-living crisis has resulted in more households falling behind on payments. For instance, Flintshire recently experienced a staggering 9.5% increase in council tax, the highest in the county's history.

Drakeford emphasized the importance of early intervention, stating, "Everyone has an obligation to pay council tax as part of civil society, and the stable and efficient system we have means over 96% of council tax is routinely collected. But we recognize that when a household misses a council tax instalment, the person can quickly become liable for the full annual bill and face enforcement action in a relatively short timeframe." He noted that while many councils already implement more flexible practices, a clearer framework is necessary to help households recover from financial shocks before debts spiral.

The proposed changes build upon previous reforms, including the ending of imprisonment for non-payment in 2019 and the automation of council tax reduction claims using Universal Credit data from April 2025. Additionally, pilot schemes like the Debt Rescue Scheme in Merthyr Tydfil, Blaenau Gwent, and Newport are being evaluated for their effectiveness.

Drakeford also mentioned a planned revaluation of homes in 2028, intended to better reflect current property values and alleviate disproportionate burdens on low-wealth households. He encouraged anyone struggling with council tax payments to reach out to their local council and available advice services promptly, stating, "This is the best route to preventing spiraling debts."

In a related development, the Welsh Government's new mental health strategy has sparked protests from families advocating for better treatment for individuals with learning disabilities and autism. On April 17, 2025, campaigners from the Stolen Lives movement gathered outside the Senedd in Cardiff Bay, expressing their frustration over the continued detention of vulnerable individuals in hospitals due to their disabilities.

The NHS’s urgent 111 helpline is reportedly receiving nearly 6,000 calls a month for mental health support, highlighting the increasing demand for immediate assistance. Critics argue that despite the introduction of a ten-year plan aimed at transforming mental health services, systemic failures persist, particularly for those with learning disabilities and autism.

Dr. Dawn Cavanagh, founder of the Stolen Lives campaign, shared her personal experience, stating, "We are talking about people being imprisoned without committing any crime. Their only crime is being disabled. It has traumatized us as a family." The protest brought together families, disability rights groups, and allies, all calling for urgent reform and investment in community care to prevent extended hospitalizations.

Data from the Welsh Government indicates that 135 individuals with learning disabilities are currently in specialist inpatient services in Wales. In England, over 2,000 individuals with learning disabilities or autism are detained, with approximately half having been held for more than two years. Campaigners assert that many of these individuals were initially admitted due to crises stemming from poor housing or lack of support, and once inside the system, they often deteriorate further, complicating their discharge.

Joe Powell, Chief Executive of All Wales People First, remarked, "Wales led the way 41 years ago with the All Wales Strategy. It said hospitals are not homes and people should live in the community. Now we are going backwards." Despite the Welsh Government's assurances of commitment to reducing inpatient numbers and improving care, many families remain skeptical.

As the Welsh Government implements its new mental health strategy, which aims to provide same-day support and focus on early intervention, campaigners stress that the success of these initiatives hinges on adequate funding and delivery at scale. Professor Kamila Hawthorne, a member of the Bevan Commission, stated, "Social prescribing and early intervention can prevent crisis—but only if the infrastructure is there. Without it, the NHS will be overwhelmed, and vulnerable people will fall through the cracks."

In the meantime, community-based support initiatives are proving beneficial when available. Sian McEvoy, 41, from Swansea, shared her story of recovery through volunteering at a local community farm after battling alcohol dependency and anxiety. Similarly, Steffan Thomas, 24, who is autistic, has found stability and purpose in his four years of volunteering at the same farm.

As the consultation on council tax reforms progresses, the Welsh Government remains committed to addressing the financial struggles of its residents while also tackling the pressing issues within the mental health system. The hope is that with the right support, individuals can avoid falling into cycles of debt and receive the care they need to thrive.