Bailiff referrals over unpaid council debts up by nearly 20%: report
An investigation by the BBC has found a 20% rise in referrals to bailiffs in England and Wales to recover unpaid council debts.
The Freedom of Information (FOI) request asked councils for the number of referrals made between April and October 2023, compared with the same period the previous year.
Birmingham City Council made 43,283 referrals over the seven-month period in 2023, nearly six times the equivalent figure for the same period in 2022.
The council issued a section 114 notice in September 2023 due to overwhelming financial liabilities resulting principally from equal pay claims.
The BBC noted the responses from councils suggested more people are struggling to pay essential living expenses, such as council tax, during the cost-of-living crisis. The debts also include parking fines, non-payment of business rates and housing arrears.
According to the report, figures suggest there is £500m of uncollected public debt each year, adding to the increasing financial strain faced by councils.
Last month, the Levelling Up, Housing and Communities (LUHC) Committee warned that local authorities should not be aggressively chasing council tax arrears from households that can least afford it, amid reports that some councils have been adopting “heavy-handed” tactics to recover debts.
A spokesperson at Birmingham City Council said: “Birmingham City Council continues to make ongoing efforts to ensure residents pay the tax they are legally obliged to. We understand it can be financially difficult for some residents in the city however, the council has a range of support options to help residents address their outstanding debt.
“As the largest local authority in the country with a tax base 20% larger than the second biggest authority (and over double the size of 97% of all other councils), it inevitable that we would have the highest number of Enforcement Agent referrals.
“The increase in 2023 was due to the Council having to work through referrals that were unable to be progressed previously due a range of matters including, the impact of COVID-19. Our current level of referrals is as expected for an authority with a tax base this size.”
Lottie Winson
