Council bailiff use jumps 14 percent in two years says Money Advice Trust research
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· Money Advice Trust report
finds councils passed 2.3m debts to bailiffs in 2016/17
· The use of bailiffs to collect
council tax and other debts has risen 14% in two years
· Mixed picture across the
country, with 4 in 10 councils actually using bailiffs less
The use of bailiffs to collect debts owed to local authorities in
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The use of bailiffs to collect debts owed to local authorities in England and Wales has jumped by 14 percent in two years, according to new research (attached) by the Money Advice Trust, the charity that runs National Debtline.
More than 2.3 million debts were passed to bailiffs by local authorities in 2016/17 according to the research, based on Freedom of Information requests. Bailiffs, also known as enforcement agents, have the right to visit a property to remove and sell goods to repay certain debts, including council tax arrears, parking notices and other debts owed to councils.
Councils increased their use of bailiffs by 14 percent overall between 2014/15 and 2016/17, despite government guidance stating that bailiff action should only ever be used as a last resort. However, the Money Advice Trust says that an increasing number of councils are working hard to improve their debt collection practices – and that four in 10 (38 percent) actually reduced their reliance on bailiffs in that time.
More than one in four callers to National Debtline (26 percent) has had Council Tax arrears so far this year – up from just 14 percent in 2007.
Bailiff use increasing overall The charity’s new report, Stop The Knock 2017 (attached), found that council tax debts were passed to bailiffs on 1.38 million occasions between April 2016 and March 2017. Parking notices were passed to bailiffs around 810,000 times, and there were around 50,000 referrals to bailiffs for Housing Benefit overpayments.
Bailiff use increased for all major types of debt between 2014/15 and 2016/17, with the number of council tax debts passed to bailiffs up 10 percent, parking referrals up 27 percent and referrals for Housing Benefit overpayments up 20 percent.
Councils working to improve At the same time, nearly four in 10 local authorities in England and Wales (38 percent) reduced their reliance on bailiffs over the two years, and the Money Advice Trust’s survey of council debt collection found many examples of good practice.
The vast majority of local councils surveyed (97 percent) signpost residents in financial difficulty to free debt advice, and 50 councils have now signed up to the Local Government Association’s joint Council Tax Protocol with Citizens Advice. A further 38 councils are currently considering signing the Protocol, which aims to help councils to prevent residents from getting into arrears in the first place.
In addition, 23 councils in England have introduced a policy of exempting residents on the lowest incomes, who receive Council Tax Support, from bailiff action altogether – a step the Money Advice Trust and other charities have long called for.
Six steps for local authorities Nevertheless, almost half of councils (44 percent) have no formal policy for dealing with residents in vulnerable circumstances when collecting debts – and while the vast majority signpost residents to free debt advice, 10 councils reported that they did not take even this basic step.
The Money Advice Trust is today publishing six steps (see below) it recommends all local authorities should take to improve the way they collect debts, and is writing to the Minister for Local Government, Marcus Jones MP, to ask for his support in encouraging councils to improve.
Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, said:
"The growing use of bailiffs to collect debts by many local authorities is deeply troubling. Councils are under enormous financial pressure, and they of course need to recover what they are owed in order to fund vital services.
"However, many councils are far too quick to turn to bailiff action – which we know can seriously harm the wellbeing of residents who are often already in vulnerable situations. It can also push people even further into debt.
“Bailiff action should only ever be used as a last resort, and can be avoided by early intervention, making sure residents get the free debt advice they need, and agreeing repayment arrangements that are affordable and sustainable.
"The good news is that many councils are working hard to improve – and indeed, nearly four in 10 are actually using bailiffs less than they were two years ago. They should be congratulated for showing that this can be done.
"I hope that our new research, and the six steps we are laying out today, will help many more local authorities as they seek to improve the way they collect the debts they are owed.”
The Money Advice Trust has today (Tuesday 14th) published the results of its research on a new online map at www.stoptheknock.org (updated site goes live Tuesday 14th) along with six steps for local authorities to take to improve their practices:
1. Make a clear public commitment to reduce bailiff use over time 2. Review signposting to free debt advice, including phone/online channels 3. Adopt the Standard Financial Statement to objectively assess affordability 4. Put in place a formal policy covering residents in vulnerable circumstances 5. Exempt Council Tax Support recipients from bailiff action (in England) 6. Sign up to the Citizens Advice/LGA Council Tax Protocol and examine the Money Advice Service’s toolkit for working with debt advice agencies
In addition to campaigning for change in local government, earlier this year the Money Advice Trust joined with Citizens Advice, StepChange Debt Charity and a group of other charities to launch Taking Control, a new campaign calling on the Ministry of Justice to reform the law surrounding bailiffs in England and Wales.
National Debtline offers free debt advice at www.nationaldebtline.org.
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Research - All findings quoted are from the Money Advice Trust’s new research, Stop The Knock 2017: Mapping local authority debt collection practices in England and Wales. 352 out of 375 local authorities responded to the charity’s Freedom of Information requests (94 percent of the total) issued in September 2017.
Overall totals quoted relate to all 352 local authorities who responded i.e. both lower-tier local authorities that have responsibility for collecting council tax (District, Metropolitan Borough, London Borough and Unitary councils) and upper tier authorities (County Councils) that primarily use bailiffs for parking-related debts.
All trend results and changes in bailiff use between 2014/15 and 2016/17 quoted are based on the 288 lower-tier local authorities for which like-for-like comparisons were possible between the two years. For more information on the research, and a clickable map of local authority bailiff use, see www.stoptheknock.org (goes live on Tuesday 14th November).
Case study – Derek*, caller to National Debtline *Name has been changed
A bailiff was collecting outstanding council tax from National Debtline client Derek*, who is a pensioner in his late seventies, severely disabled and housebound. Following a notice being left at the house, Derek’s carer contacted the bailiff firm and was told that a locksmith was due to attend to force entry to Derek’s property in the evening, despite no previous entry or any controlled goods agreement being in place.
The bailiff firm also suggested that there could be police attendance to the premises to arrest Derek if payment was not made in full. Derek’s carer, being terrified, paid the bailiff firm using her own money when they later visited, to stop any further action.
About the Money Advice Trust
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