The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
This month's legal round up includes new enforcement agent regulations, council tax collection guidance in Wales, planned changes for council tax collection in England, published reports and research.
Changes to Taking Control of Goods regulations
New regulations introduced by the Ministry of Justice will make changes to the taking control of goods procedure from 1 May 2026. The changes are as follows:
an enforcement agent must wait 14 clear days before taking control of goods after serving a notice of enforcement (up from 7 days)
if a debt adviser requests an extension before the 14 days is up, an enforcement agent must wait a minimum of 28 days before taking control of goods
the Notice of Enforcement must include a link to information about where to get free debt advice, and explain the potential for extending the minimum notice period to 28 days as above
if an enforcement agent has not made contact with the liable person at the first enforcement stage, they must give that person another opportunity to pay in full or enter a controlled goods agreement, before they can move to the second enforcement stage and apply the fee
the threshold for higher percentage fees will increase from £1,000 to £1,200 for high court enforcement cases, and from £1,500 to £1,900 for all others
all fixed fees will increase by 5%
The Taking Control of Goods (Miscellaneous Amendments) Regulations 2026
New council tax collection guidance for local authorities in Wales
From 1 April 2026, households in Wales have 63 days from receiving a reminder before the local authority can obtain a liability order and take enforcement action.
The Welsh Government has published new guidance on council tax collection for local authorities, to sit alongside the existing Council Tax Protocol for Wales.
The new guidance includes standard templates for reminder and final notices which set out the information that must be included.
The guidance is intended to encourage early engagement with taxpayers, providing them with more time to get debt advice and for local authorities to offer repayment plans for arrears.
Council Tax collection framework: guidance for local authorities (Wales)
Modernising and improving the administration of council tax in England
The government has published their response to the consultation on modernising the administration of council tax in England.
From April 2027:
those who are newly liable for council tax will be billed in 12 monthly instalments by default
taxpayers will still be able to request billing over 10 months
households will have 63 days from receiving a reminder before the local authority can obtain a liability order and take enforcement action
liability order costs will be capped at £100
The government will also consult with councils on the specific steps, including the timing, content and number of reminder notices which must be issued, alongside government guidance on other steps councils should consider taking. These steps include engagement, support and signposting to advice services, before progressing to formal enforcement action.
From April 2028:
all council tax will be billed over 12 monthly instalments
taxpayers will still be able to request billing over 10 months
The government also intends to modernise the wording of the legislation, changing the term “severe mental impairment” to “severe cognitive impairment”, when parliamentary time allows.
Modernising and improving the administration of council tax - government response
Carers debts cancelled
The Department of Work and Pensions (DWP) has announced that around 25,000 unpaid carers affected by confusing guidance on their earnings will have their debts reduced, cancelled, or refunded.
The DWP will reassess cases where overpayments arose due to the guidance that did not accurately reflect the statutory position on averaging irregularly fluctuating earnings between April 2015 and September 2025.
Unpaid carers impacted by unclear guidance to have debts cancelled
Motor finance consumer redress scheme
The Financial Conduct Authority (FCA) has announced an industry-wide redress scheme to compensate motor finance consumers who were treated unfairly between 2007 and 2024.
12.1 million agreements are now eligible for compensation, fewer than under the FCA’s original proposals. The average payout has increased to around £830 per agreement. The FCA estimates that 75% of eligible consumers will make a claim.
Motor finance loans taken out between 6 April 2007 to 1 November 2024 are covered.
Compensation for claims relating to agreements taken out earlier than 1 April 2014 has been set at a slightly higher level than later agreements.
There will be a short set-up period so firms can prepare to compensate consumers:
for finance agreements taken out since 1 April 2014, the scheme will start on 30 June 2026
for finance agreements taken out earlier than 1 April 2014, the scheme will start on 31 August 2026
Firms may start looking at claims before these dates.
FCA Policy Statement - Motor Finance Consumer Redress Scheme
Money and Pensions Service guidance for motor finance consumers
The Money and Pensions Service has also published guidance for motor finance consumers on who is eligible and how to claim compensation. The guidance encourages consumers not to use claims management companies and warns about scammers contacting people to offer them compensation as a way to trick them into giving away their personal information.
Moneyhelper - Mis-sold car finance – who will get compensation and how will it be paid?
FCA and ICO statement on vulnerable customers and use of personal data
The FCA and the Information Commissioner’s Office (ICO) have issued a joint statement, outlining their expectations of firms for delivering good outcomes for retail consumers in vulnerable circumstances, in line with the Consumer Duty, while also maintaining confidence in the lawful, fair and responsible use of personal information in line with the ICO’s expectations.
Joint FCA and ICO statement on vulnerable customers and use of personal data
Government Debt Strategy
The government has published the Government Debt Management Strategy 2026-2030. The strategy aims to improve the approach to the resolution of debt owed to government through a focus on:
preventing avoidable debt
resolving debt to clear standards
improving government capability to resolve debt efficiently, effectively and fairly
Prevent Resolve Improve 26-30 Government Debt Management Strategy
IMA publishes equity, diversity and inclusion research
The Institute of Money Advisers (IMA) has published its research into equity, diversity and inclusion (EDI) issues in the sector to understand barriers to entry and progression among those with protected characteristics.
The EDI research finds that there is a lack of publicly available EDI data about the sector workforce, including a number of barriers to inclusion, particularly among advisers with disabilities and those from ethnic minority backgrounds. The research also identified many areas of good practice from employers, which help to mitigate some of these barriers.
The IMA makes recommendations:
employers should consider implementing existing examples of good practice
employers should ensure that entry into the sector is viable for people of all backgrounds, by developing inclusive strategies for recruitment and onboarding of new advisers
case volume requirements should take into account the needs of marginalised groups
funders should require funded organisations to collect EDI data
funders should require funded organisations to have regard to EDI as part of funding agreements
Equity, diversity and inclusion research by the IMA
Citizens Advice report on debt in 2025
Citizens Advice has published a report sharing key trends and insights from their debt data in 2025. The report outlines key recommendations for the government to ensure people can access safe and effective routes out of debt, and support people with the rising cost of essentials.
Deeper still: the shape of debt in 2025
StepChange report on council tax collection
Stepchange has published a report on council tax letters and notices from local authorities in England and Wales. The report draws on Freedom of Information requests, used to analyse how local authorities communicate with those in arrears.
Their research found that communication varied widely by local authority. The report highlights a lack of signposting to debt advice or mention of potential discretionary support and notes inappropriate threats and use of imprisonment proceedings.
StepChange: Clear, Fair, Understandable?
Case law
Find debt case law summaries by topic on Shelter Legal.
Thomas Curr v The Insolvency Service
When a debt relief order is revoked, it is treated as if it had never been made.
Read the summary of Thomas Curr v The Insolvency Service on Shelter Legal.
Spotlight
This month's article from Shelter.
Renters’ Rights Act resources
The Renters’ Rights Act is a major reform of private renting in England. It aims to give renters greater security, fairness and stability.
From 1 May 2026, assured shorthold tenancies are replaced with fully assured periodic tenancies and ‘no fault’ section 21 notices are a thing of the past. For further guidance on what the new Act means in practice, including guidance for private renters and debt advisers, see the following Shelter resources.
Renters' Rights Act: changes for private tenants