New map shows the parts of London where councils send out most bailiffs to collect debts
The London Borough of Croydon sends out the highest number of bailiffs in all of England and Wales to collect debts, according to a new interactive map. It sent out the most bailiffs for debt collection between 2022 and 2023, a staggering 86,295 referrals, with 36,122 of these referrals for council tax arrears.
Martin Lewis’s charity, The Money and Mental Health Policy Institute, has said councils' use of bailiffs for debt collection is "grotesque", and "aggressive", likening them to a "caricature of the worst loan sharks."
Despite the huge number, Croydon Council does not have the highest rate of bailiffs being sent out per household - this title allegedly belongs to Waltham Forest Council where the was an equivalent of 815 bailiff referrals per 1,000 households, Stop The Knock.
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However, Waltham Forest Council has disputed this claim as misleading, saying that the rate of referrals was skewed by referrals for parking penalty charge notices (PCNs), many of which were issued to vehicles registered outside of the borough. They added that some singular cases have multiple bailiff referrals listed for several smaller debts. It also does not reflect 'recycled collections' where the first bailiff failed to collect the whole debt so another is sent out.
However, Martin Lewis' charity still saw an issue with how council tax arrears were dealt with by bailiffs. It pointed out that if an individual misses just one council tax payment, they could receive a notice within three weeks requiring them to pay their annual council tax bill upfront within seven days.
For the average UK household, this could mean a missed £140 payment results in a £1,668 bill just three weeks later. According to Martin's charity, many councils resort to debt collectors and bailiffs to recover this money.
You can discover how often your local council referred bailiffs between 2022 and 2023 using our interactive map below:
The Centre for Social Justice (CSJ) reports that total council tax debt currently stands at £6 billion. Research by the Money Advice Trust shows that around 1.3 million households in England and Wales were visited by a debt collector last year, reports the Mirror.
The number of people referred to debt collection agencies varied significantly by council, according to the most recent data for the year to April 2023. The top three councils for sending bailiffs for council tax arrears were Croydon, with 36,122 customers as mentioned above, followed by Barnet with 34,956 referrals, and Lambeth with 29,629.
Residents in four London boroughs were also the most likely to receive a knock from the bailiffs in the country too with the highest rate per household. These were Waltham Forest, as mentioned, with 815 per 1,000 households, followed by Westminster (776 per 1,000 households), Croydon (564) and Haringey (508).
What did the Councils say?
A spokesperson from Waltham Forest Council told MyLondon: "Like many local authorities, Waltham Forest has seen its Government funding decrease significantly over the last 14 years. Council Tax now accounts for nearly 55 per cent of our total funding, compared to 30 per cent in 2010. To make sure that the essential services on which residents rely can be properly funded, such as adult social care, community safety, and parks and green spaces, we will take action against the minority of people who do not pay their fair way.
“We issue Penalty Charge Notices when contravening vehicles cause problems for other road users and pedestrians. We have not changed our policies regarding enforcement, and we comply with all relevant legislation and legal guidelines.
“We have a wide range of support schemes in place to help anyone who may be struggling with their finances. We urge anyone who is concerned to reach out to us as soon as possible so that we can help, rather than hoping the problem goes away.”
They added that the calculation used to assess the referral rate for Council Tax by Stop The Knock is based on out-of-date property base figures. The correct figure is 19,800 referrals with a property base of 109,083, they said. They added there also had been a backlog of referrals pushed into the later years from Covid which has now been cleared. They publish advice for people struggling with debts and the cost of living on their website here.
A Croydon Council spokesperson said: "We know some of our residents are facing real challenges with paying their bills and encourage anyone having difficulties paying their council tax to contact us as soon as possible. We will work with them to understand their situation and identify if they may be eligible for help, including through our council tax support scheme which protects our most vulnerable residents from paying any council tax at all."
They also added they are required by law to take action to recover unpaid council tax. Croydon has the highest population in London, which means the net collectable debt is often higher than other London boroughs, they said. To get help with the rising cost of living or get money off your council tax bill you can visit their website.
Is there a way around the use of bailiffs?
The Money Advice Trust highlighted that areas with larger populations and higher levels of deprivation tend to utilise more bailiffs. Only 15 out of the 319 English and Welsh local authorities didn't refer any customers in council tax arrears to debt collection agencies in 2022/23, including.
For instance, Hammersmith and Fulham Council have completely eliminated the use of bailiffs for recovering unpaid council tax, opting instead to offer support when residents begin to fall behind. The Money Advice Trust discovered that only about half (48%) of all English and Welsh councils have a formal policy in place to recognise and assist residents in vulnerable situations.
These policies encompass measures like providing more time for repayment, referring to broader support services, or halting debt collection efforts. However, all councils claim they direct those in debt to charities for assistance, such as the Citizens Advice Bureau and debt charity StepChange.
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