Jonathan Werran Thursday, August 22, 2013

Council use of bailiffs 'excessive' says debt charity boss

Councils have called bailiffs to chase local tax arrears more than 1.8 million times in the last year, a national debt advice charity has reported.

Figures collected by the Money Advice Trust, based on Freedom of Information requests sent to 374 local authorities in England and Wales, reveal council tax debts were the most common cause of bailiffs being called.

However, the research showed significant regional variations, with Birmingham City Council the most prolific authority for chasing up money, seeking bailiffs to recover money from some 77,683 residents – representing just under one fifth (17%) of the city’s properties.

In addition, Birmingham made the greatest use of bailiffs to ensure repayment of business rate arrears, making some 4,446 referrals.

Debt collector Councils are being criticised for their 'excessive' use of bailiffs.

Westminster City Council was in second place, with a total of 56,222 referrals followed by Newham LBC which pursued residential debts on 54,717 occasions, equating to nearly half the London borough’s properties.

Money Advice Trust chief executive Joanna Elson branded the total figure of 1.8 million annual referrals by councils as ‘excessive’.

‘Local authorities seem to be assuming that anyone not paying debts is a "won’t pay", rather than a "can’t pay,"' Ms Elson said.

However, Newham Mayor, Sir Robin Wales, said the figures were misleading because two thirds of the calls to use bailiffs were for parking fines incurred by people from outside the borough.

‘We only use bailiffs as a last resort,’ Sir Robin said. ‘And it depends on the nature of the debt you’ve got.

‘If it’s housing or council tax, we’ll work with people and we’ll try and get them to come up with an offer to pay it over a period,’ Sir Robin said.

Last week national charity Citizens Advice issued research indicating working parents made up 1 in 5 people experiencing bailiff problems.

‘The move from council tax benefits to a localised support scheme means fewer people who are on a financial knife-edge will get help with their bills, and puts more people at risk of bailiff action,’ said Citizens Advice chief executive, Gillian Guy today.

‘I want councils to try to avoid the use of bailiffs by supporting those who are struggling,’ Ms Guy said.

‘Offering a different day to pay, sorting out suitable repayment plans and putting them in touch with debt charities like ourselves could keep the bailiffs at bay.’

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