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Referrals to bailiffs in England and Wales to recuperate unpaid council money owed have risen by practically 20%, a BBC investigation has discovered.
Birmingham’s 500% rise in referrals between 2022 and 2023 topped the listing of 280 councils that replied to a File on 4 Freedom of Info request.
Figures recommend there may be £500m of uncollected public debt annually, including to councils’ strained funds.
One bailiff mentioned he was incentivised to make use of underhand techniques.
That is regardless of trade claims that it has cleaned up its act.
The BBC’s Freedom of Info (FOI) request requested councils for the variety of referrals made between April and October 2023, in contrast with the identical interval the earlier yr.
Lately “bankrupt” Birmingham made 43,283 referrals over the seven-month interval in 2023.
That was practically six instances the equal determine for a similar interval in 2022 of seven,875 (adjusted for comparability).
The responses from all of the councils who got here again to us recommend extra persons are struggling to pay important residing bills, akin to council tax, throughout the price of residing disaster.
The money owed additionally embody parking fines, non-payment of enterprise charges and housing arrears.
The quantities are made worse as a result of as soon as a bailiff is concerned charges mount up. However with many councils throughout England and Wales in monetary dire straits each penny is required to take care of important providers.
What occurs when a council debt just isn’t paid?
- Native authority will get courtroom permission to recuperate cash owing, including round £100 to debt
- Contract given to enforcement company which writes to debtor, £75 charge
- Debtor receives knock on the door, £235 charge
- If items are seized and bought at public sale, £110 charge
- Prices enhance for money owed over £1,500 or if Excessive Courtroom bailiffs are concerned
For Paul Crichton, the debt spiral was devastating. He couldn’t pay his council tax and thought of taking his personal life, following the strain he felt from debt collectors despatched by Stockport Council.
The previous Military medic instructed the BBC he fled his home to keep away from bailiffs. “They have been so antagonistic that I’d stand up out of the home and principally keep out throughout regular working hours. My technique was to remain out of their manner,” he instructed File on 4.
Stockport Council mentioned it solely takes enforcement motion as a “final resort”.
Nonetheless, Joe Cox, senior coverage officer for charity Debt Justice, believes the way in which public sector debt assortment is structured is problematic.
“The gathering course of pushes individuals additional into debt, which signifies that it’s more durable for them to get again on their toes and it’s more durable for them to repay the unique debt and reset their lives.”
Enforcement corporations are usually not paid by councils and solely generate profits if a debt is efficiently recovered by the bailiff or “enforcement agent”.
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