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Liverpool City Council has made notable progress in recovering debt owed to them, according to a recent report. As part of their ongoing efforts to improve, the local authority has focused on enhancing the collection of funds that support essential services. The successes achieved include a reduction of £2.1 million in overall sundry debt receipts, thanks to improved guidelines and procedures for managing debts efficiently.
Additionally, the implementation of electronic invoicing and reminders has led to a decrease in invoice clearance time from 51 to 34 days, saving £6k in postage costs. Housing benefit overpayments have also seen progress, decreasing from nearly £20 million in April 2023 to £15.6 million. The council has successfully recovered £1.8 million from the top 30 adult social care debts as well.
Furthermore, Council Tax arrears have reduced by £5.6 million since April 2025, and a significant £12.8 million reduction has been achieved since 2020. This improvement is attributed to the introduction of flexible payment plans for residents to manage payments more effectively throughout the year, along with enhanced reminders to households. Measures like better communication and support have led to a £1 million decrease in outstanding Business Rates this year, marking a reduction of £2.1 million since 2020.
Deputy Council Leader and Cabinet Member for Finance, Resources, and Transformation, Councillor Ruth Bennett, emphasized the importance of timely payments to support essential services for residents. She acknowledged the significant improvement in financial management over the past few years, attributing it to streamlined processes and proactive outreach to those struggling with payments. The council’s commitment to assisting individuals and businesses in developing repayment plans underscores their dedication to supporting the community. Similarly to other local authorities, Liverpool City Council regularly reviews its bad debt provision to ensure accurate accounting and recovery expectations. This year, approximately £13.5 million has been written off, with plans to reduce write-offs in the future through improved debt recovery strategies
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