Progress at Last on Unfair CIL Charges

Over the past few months, I have been pushing the Government to address growing concerns around the Community Infrastructure Levy (CIL) system - particularly where homeowners and self-builders have been hit with devastating charges because of technical or administrative errors. 

Last week, we finally saw significant progress. 

The Housing Minister, Matthew Pennycook, confirmed that the Government will publish a consultation on reforms to the CIL system,, with a clear focus on improving how exemptions for housebuilders and self-builders are handled.  

Crucially, Ministers have now publicly acknowledged that the current system is not working as intended. 

That is a major step forward. 

What is CIL? 

The Community Infrastructure Levy (CIL) was introduced to help fund local infrastructure needed alongside development, including schools, GP surgeries, roads and community facilities. 

In principle, developers contribute towards the impact of new development in an area. 

But while exemptions exist for some homeowners and self-builders, the rules are incredibly technical. In too many cases, people have become liable for huge charges simply because of a missed form, misunderstood deadline, or minor administrative mistake. 

That is what needs to change. 

Families facing life-changing bills 

Across the country, families have faced unexpected CIL penalties of £12,000, £40,000, £100,000 and, in one shocking case, £292,000 - often because of simple procedural errors. 

These are not large developers trying to exploit loopholes. 

They are ordinary people improving their homes or trying to build a family home, caught in an overly rigid and unforgiving system. 

In too many cases, there has been little flexibility for honest mistakes and no meaningful route to correct simple administrative errors. 

For some families, the consequences have been life-changing. 

Nobody should face the prospect of remortgaging or selling their home because of a technical paperwork error. 

The work I’ve been doing 

This progress did not happen by accident. 

For months, I have been working with affected residents, campaigners, parliamentary colleagues and ministers to push for reform. 

Since September, I have: 

• Submitted amendments calling for clearer national guidance and fairer handling of technical errors  

• Called for a review of liability notices so homeowners are properly informed  

• Tabled written parliamentary questions on exemptions and support for affected residents  

• Met directly with Housing Minister Matthew Pennycook  

• Raised the issue repeatedly through the Housing, Communities and Local Government Select Committee  

Alongside this, I’ve been working closely with the CIL Injustice Group, whose determined campaigning has played a hugely important role in keeping pressure on the Government and highlighting the devastating impact these charges have had on families. 

Crucially, the Government has now recognised that the current regulations are not working as intended, committing not only to reducing errors, but also ensuring that when mistakes are made, councils do not impose  “disproportionate penalties” on ordinary homeowners. 

West Berkshire showing the way 

Importantly, in West Berkshire we have already shown that a fairer and more compassionate approach is possible. 

Through the council’s discretionary review scheme, more than £350,000 has been returned to 18 residents who were wrongly charged. The council was rightly praised by cross-party members during a parliamentary debate last week as a clear example of delivering justice, even within the current regime, where there is the will to do so. 

That matters. Because it proves this issue can be addressed when there is the political will to do so. 

What happens next 

The Government has now committed to consulting on reforms designed to: 

• Improve how householder and self-build exemptions are handled  

• Reduce procedural and administrative errors  

• Ensure penalties are proportionate  

• Maintain appropriate oversight for councils administering the system  

  
  

The consultation is expected before the summer recess. There is still more work to do, but this announcement represents real progress - and a significant win for the families, campaigners and residents who have fought so hard to get this issue recognised. 

I will continue working with Ministers, parliamentary colleagues and campaign groups to make sure these reforms deliver a fairer system - one that supports communities rather than punishing people for honest mistakes.