London boroughs are too aggressive when it comes to council tax debt recovery, according to a report by the London Assembly.
In a report on the rising tide of debt in the Capital, the Assembly accused the boroughs of being too quick to turn to bailiffs, and too threatening towards those who are struggling to pay.
Final Demand, a report to the London Mayor, highlights the problem of council tax debt as a growing issue for those on low incomes. According to the report, it was the biggest source of debt seen by Citizen’s Advice Bureaux in London last year.
The report found council tax debt more than doubled between 2006 and 2014. Changes brought into force in 2013 which made low income families pay council tax for the first time created even more problems.
According to the report ‘the consequences of council tax arrears are the most severe [in terms of debt recovery]’.
‘In comparisons to other creditors, boroughs are the most likely to quickly apply tough enforcement actions, often sending in bailiffs within a few months of someone falling into council tax arrears,’ the report says.
‘Behaviour such as persistent phone calls, visits from bailiffs and threatening court action puts families, especially those with children, under enormous strain.’
The assembly has called on London local authorities to revise their debt recovery to help those struggling to make payments, and to cut the cost of recovery fees and bailiff charges.
It has also called for the boroughs to work with London Councils to implement a ‘fair and consistent’ approach to debt recovery.
Jenny Jones AM, chair of the economy committee, said: ‘Debt causes sleepless nights for many and the numbers of people in financial difficulty in London are worrying. Problem debt not only affects mental and physical health, it can also put real strain on families and relationships.’
