Martin Lewis, a prominent money expert, has condemned local authorities for their aggressive council tax collection practices, comparing them to 'the worst loan sharks.'

He describes these practices as 'grotesque,' where a single missed payment can lead to severe penalties, court summons, and bailiff actions.

Under current rules, councils can demand full payment of council tax within just seven days of a missed payment, potentially resulting in a total bill of up to £1,668 within three weeks.

Lewis criticizes councils for charging fees up to £150 to cover administrative costs for issuing council tax liability orders, despite the actual court costs being only 50p.

Official figures reveal that council tax arrears in England surged by 9% to £6 billion last year, with over 3 million individuals facing bailiff actions due to these arrears.

He argues that the harshness of these practices surpasses those found in the regulated private financial sector, further exacerbating distress for individuals in debt, especially those with mental health issues.

The Local Government Association claims that councils should maintain fair collection policies and work with individuals struggling to pay their bills, suggesting that bailiffs should be a last resort.

Lewis calls for government reforms to provide low-income households with more time to establish affordable repayment plans before facing enforcement actions.

He insists that the new Labour government must address budget cuts faced by local councils without resorting to punitive measures against those in debt.

Lewis advocates for government intervention to reform council tax collection practices, urging a more compassionate approach towards low-income households.

In contrast to council practices, mainstream lenders are required to offer repayment options and typically wait three months before escalating recovery actions after missed payments.

Lewis urges council leaders to reconsider their practices, especially as they campaign against unscrupulous private sector lenders while contributing to the financial struggles of vulnerable residents.