MANCHESTER, UK, 23rd February 2024 – Recent findings indicate a significant 20% rise in the use of bailiffs for the collection of council debts, amid budget reductions and escalating instances of delayed council debt payments.
The notion of bailiffs arriving to enforce debt collection is daunting, and the uptick in such referrals is causing widespread anxiety.
An investigation by the BBC has highlighted a 20% surge in the employment of bailiffs by councils to secure unpaid debts. Faced with financial constraints from reduced budgets and their own debt burdens, several local authorities emphasize the imperative of recuperating all dues to sustain essential community services.
Among 280 councils in England, Birmingham reported the most pronounced increase in bailiff referrals from 2022 to 2023, with instances in a specific seven-month span jumping from 7,875 to 42,283, marking a 500% hike. Conversely, Chorley managed to reduce its referrals by 80%, adopting a supportive approach by engaging a social prescribing team to aid vulnerable individuals.
Understanding Council Debts: Council debts comprise arrears in council tax, parking penalties, business rates, and housing rents.
It is estimated that councils fail to collect approximately £500m in public debt annually, exacerbating financial pressures, particularly amidst the prevailing cost-of-living crisis which hampers individuals’ ability to settle debts.
When Councils Escalate to Bailiff Referrals: Councils must secure a liability order to proceed with enforcement actions against defaulters.
Delinquency in council tax or parking fine payments can prompt the council to request a liability order from a magistrates’ court, enabling them to undertake enforcement measures.
Such measures might include deploying bailiffs, deducting from wages or benefits, charging against owned property, or initiating bankruptcy.
The choice of enforcement method lies with the council, yet only one action can be implemented per liability order.
Notification of at least seven days is provided before bailiff intervention, and there’s no compulsion to grant them entry into your residence.
Financial Implications of Bailiff Engagement: The process of debt recovery through bailiffs incurs additional fees, further burdening debtors:
- Seeking court approval for fund recovery adds £100 to your debt.
- Engaging an enforcement agency incurs an extra £75.
- A visit from a bailiff leads to an additional charge of £235.
- The seizure and auction of assets to repay the debt contribute an extra £110.
- Engagements involving High Court bailiffs or debts surpassing £1,500 attract higher fees.
Navigating Council Debts: For those lagging behind on council taxes or other council-associated debts, proactive measures can forestall bailiff interventions:
Propose a Payment Plan: You can always propose a payment arrangement to the council. If capable, settling the debt promptly is advisable. If not, calculate a feasible payment plan based on your budget, with readiness to validate your proposed plan upon request.
Engage in the Breathing Space Scheme: The Breathing Space initiative offers a 60-day pause for seeking debt advice and identifying suitable debt management strategies, during which no further council actions, including bailiff referrals, are permitted. This relief is available once yearly.
Pursue Debt Advice: Professional debt advice can offer strategies to manage council debts effectively and prevent bailiff action. The Bailiff Helpline team is ready to understand your situation and guide you towards suitable debt management solutions.
For support with council debts, reach out to the Bailiff Helpline on 0161 660 7255 or explore bailiffhelpline.co.uk for further details.
