New scheme allows struggling households to pause council tax payments for 60 days

18 December 2020, 15:21

By Alice Dear

The new Government scheme, which will launch next year, will give people financially struggling 'breathing space'.

A new scheme set out by the Government will allow struggling households to pause their council tax bills for 60 days.

The plans were first announced back in June 2019 and were approved in October of 2020.

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The scheme, which allows 'breathing space' for people struggling to pay bills, will start from May 4 next year.

The plan will allow people to be protected from bailiffs and prosecution for a two month period.

People eligible for the help will have to have not entered into a 'breathing space' in the past 12 months, and must have had their finances assessed by a debt advisor.

While the scheme will not come into place for months yet, the Ministry of Housing, Communities & Local Government (MHCLG) have asked councils to prepare for the changes.

People who are eligible for the 'breathing space' could also be able to add other existing depts to the scheme – including tax, benefit overpayments, credit cards and loans.

In the two month period, no action will be allowed to be taken from creditors and any fees while be frozen.

According to figures released earlier in the year, the scheme is set to help 700,000 Brits out in the first year of it running.

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