An investigation conducted by the BBC has shown that referrals to bailiffs regarding unpaid council debts in England and Wales have increased by nearly 20%. Out of the 280 councils that replied to the Freedom of Information request from the BBC’s File on 4 programme, Birmingham saw the highest rise of 500% in referrals between 2022 and 2023. The mounting uncollected debt means that the finances of councils, already under strain, are further squeezed. It is reported that there is £500m worth of uncollected public debt each year, with parking fines, housing arrears, and non-payment of business rates contributing to the issue.
Despite the industry’s claims that it has cleaned up its act, one bailiff confirmed the use of underhand tactics, which is incentivised, continues. The FOI request carried out by the BBC asked councils for the number of referrals made between April and October 2023, compared with the same period from the previous year. Respondents from all the councils that replied confirmed that the number of people struggling with essential living expenses, such as council tax, had increased during the cost of living crisis.
For those dealing with bailiffs, the mounting fees can tip a debt into an unmanageable spiral, with the more debt owed, the higher the cost of recovery. In extreme cases, chased debtors experience a significant toll on their mental and emotional well-being, causing anxiety, depression, or even thoughts of suicide. The Debt Justice Charity’s Senior Policy Officer, Joe Cox, believes that the structure of public sector debt collection is problematic and only pushes people further into debt, making it harder for them to get back on their feet and pay off their debt.
Whilst the civil enforcement trade association CIVEA, which represents the industry, cites missed government targets as the issue hampering the 2014 reforms to the debt recovery sector, the new regulator, Catherine Brown, has expressed scepticism and wants bailiffs to be paid based on working with humanity and not only for successfully collecting a debt. Despite this, most councils continue to outsource enforcement to the private sector, where recovery work has been conducted for around 400 years. Nonetheless, one local council in north-west England, with its innovative approach, shows that it is possible to collect debts without outsourcing to bailiffs successfully. Chorley and South Ribble council’s deputy leader, Peter Wilson, reports remarkable results in reducing numbers of bailiff referrals. They treat their people as vulnerable and refer them to our social prescribing teams, working with GPs and other local agencies to provide assistance
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