Local authorities are far too quick to set bailiffs to work in collecting unpaid council tax, the leader of a national advice charity has warned.
Gillian Guy, chief executive for Citizens Advice made the comments in light of findings, which show one in five people hounded by money collectors are working people.
New figures issued today show parents are more likely to have bailiffs knocking on their door demanding cash than any other group, and there is little difference as to whether they are working households (46%) and unemployed families (54%).
Citizens Advice claims the findings would ‘reignite’ concerns that this year’s introduction of localised council tax benefit support schemes has resulted in an upsurge in the number of people on low-incomes being harassed by bailiffs.
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Between Aprils 2012 and March 2013 the charity helped 38,262 people facing more than 60,000 bailiff problems – a third of which were for council tax arrears.
‘We’re concerned that all too often debts, like unpaid council tax, are passed to bailiffs too quickly without recognizing that the person may be struggling and need help like repayment plans,’ said Ms Guy.
‘Creditors need to be identifying debt problems earlier and offering support, and never side-stepping responsibilities by handing it over to bailiffs,’ the Citizens Advice chief executive added.
Results of the survey indicate a north-south divide, with the north east accounting for one sixth of bailiff problems referred to Citizens Advice Bureaux. In addition, one in 25 problems dealt with by CABs in the north east are concerned with bailiffs, compared with just one in 100 in the south west of England.
In June, communities secretary Eric Pickles outlined plans to tackle councils' use of 'heavy-handed' bailiffs, following claims some firms have aggressively targeted indebted local residents.
DCLG guidance issued on 17 June warned councils they should not collect ‘contractual kickbacks’ from bailiffs – under which authorities share profits on fees raised – or employ firms seeking to exploit residents through 'phantom visits' or excessive fees.
Mr Pickles said: 'It is unacceptable for councils to employ burly bailiffs with heavy-handed tactics. It is unfair, and damages a councils standing in a community.’