In Focus Collections Change in sight?


Council Tax debt and the changing face of enforcement


Russell Hamblin-Boone Chief executive officer, Civea ceo@civea.co.uk


For many years, the common image of bailiffs was as the hard edge of debt recovery with the power to enter homes and seize personal possessions, almost without restriction. But that outdated image is challenged by the reality of long-term evolution in the industry and in local authority debt collection, which has even sped up during the Covid crisis. For example, councils worked with


enforcement agents to support local communities and deliver medical supplies. Enforcement agents performed security and marshalling duties at testing stations. However, with councils returning to normal duties, it is likely the industry will do likewise. Recovery of unpaid council tax bills may


be particularly hard on families whose finances have taken a hit in the pandemic, and have prioritised other bills. This is why the civil enforcement industry only collects from those that can pay but won’t, rather than those in genuine financial difficulty – and indeed are often the first to identify and refer them to support. However, councils are in desperate need


of this funding, which is vital to ensure frontline services continue after a devastating drop in revenue due to the pandemic. The National Audit Office has calculated the pandemic’s cost to councils stood at £6.9bn last year and it forecasts further losses of £2.8bn lost income in the next financial year. In 2019/20, enforcement agents recovered over £500m in outstanding debt for authorities, which all pays for important services, such as social care. So, the fiscal case for enforcement is as


strong as ever, and there is still clear public support for enforcement agents. According to a YouGov survey conducted in 2020,


August 2021


over half (56%) of adults believe councils should use bailiffs to try and collect unpaid council tax from people who can but will not pay, compared to just 28% who disagreed. But this is a situation we have never been


in before. The financial circumstances of millions of people have never been more precarious and uncertain. The Money and Pensions Service predicts that the number of people needing help with debt will climb for at least the next 18 months, with an increase of over 60% by the end of 2021. So, the balance to be struck between


supporting services and creditors rights and identifying and supporting the financially vulnerable is incredibly delicate. To mitigate widespread expectations of a


rise in council tax arrears, the government has given councils more time to collect the levy and offered more support for those who find themselves struggling to pay. But ultimately, paying council tax is a


legal requirement and authorities are within their rights to pursue non-payment through the courts, if necessary, after their own


recovery process has been unsuccessful. Enforcement is the most effective way of recovering debt and the cost is met by the debtor, ensuring that other taxpayers do not subsidise non-payers. The challenge is to find a way that delivers


for all parties. In an effort to provide a solution, the


enforcement sector has worked with the Centre for Social Justice and debt advice organisations on a ground-breaking initiative to design an oversight body that is fit for a post-pandemic environment. The Enforcement Conduct Authority (ECA) is an industry-funded, independently managed model of self-regulation. The ECA will be launched later in 2021


and will bring an unprecedented degree of independent scrutiny of enforcement firms and their agents. Its core mission is to drive improvements in the enforcement industry and protect the public against inappropriate practices. Its core functions are supervising conduct, maintaining standards and han- dling escalated complaints. The industry has responded proactively to


The financial circumstances of millions of people have never been more precarious and uncertain. The Money and Pensions Service predicts that the number of people needing help with debt will climb for at least the next 18 months, with an increase of over 60% by the end of 2021


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changing social, economic and environmen- tal conditions. The ECA is a responsible initiative to enhance public debt collection and protect both the financially vulnerable and other taxpayers and local services. With the support of the debt advice


sector, civil enforcement is leading reforms in local government debt management in a post-Covid community. With firm plans in place for an independent, industry oversight body with the powers to drive up standards and drive out bad practices, the changing face of enforcement has never looked better. CCR


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