Almost two-thirds of MPs have been asked for help by constituents worried about debts owed to local authorities, a survey has revealed.
Some 81% believe councils should find better ways to distinguish between people who can’t pay their debts and those who won’t pay.
The survey, by consumer insight firm Equifax, also found 63% of MPs think people find it easier to delay paying public sector debts, around half think debts are inevitable in the current economic climate and more than a third would like to see tougher penalties introduced.
‘More than a third of MPs we researched said that unpaid public sector debt would result in a reduction in local services,’ said Melanie Hosker, head of public sector services at Equifax.
‘One in ten said they would expect there to be an increase in local taxes to address the deficit of unpaid debts. According to the Department for Communities and Local Government this amounted to £2,528m for council taxes alone, as at 31st March 2014.
‘Recognising the economic conditions affecting the ability of individuals to pay their public sector debts, local authorities need to have a better understanding of individuals’ financial circumstances.
‘Focused and appropriate strategies can then be devised and implemented based on that understanding, ensuring essential funds are made available for frontline services and help can be offered to those who genuinely “can’t pay”.’
