Councils in Cambridgeshire have come under scrutiny for sending bailiffs to thousands of households in an effort to recover unpaid council tax. New data reveals that Peterborough alone made almost 18,500 bailiff referrals in the year leading up to April 2023, surpassing the combined total of all other areas in the county. This heavy reliance on bailiff action has sparked criticism, particularly from organisations that advocate for fairer approaches to debt collection, raising concerns about the impact on vulnerable residents.
Aggressive Debt Collection Practices Challenged
Debt charities, including one led by a prominent personal finance expert, have strongly criticised the current approach to council tax debt recovery. These organisations argue that the practices employed by many local authorities are overly aggressive, resembling the predatory tactics of loan sharks. One key issue they highlight is that if a household misses just a single council tax payment, it can quickly escalate into a demand for the full year’s tax to be paid within weeks, leaving struggling families with little room to recover.
The typical annual council tax bill in the UK is around £1,668. When residents miss a single monthly payment of approximately £140, they can be forced to pay the entire year’s balance in a very short period of time. This puts additional strain on those already facing financial difficulties, often pushing them further into debt.
Scale of the Problem
Council tax debt has reached unprecedented levels across the country, with the total now standing at £6 billion, according to one social policy group. Research from a debt charity further reveals that 1.3 million households in England and Wales were visited by debt collectors last year. The number of referrals to bailiffs varies significantly between councils, with Peterborough emerging as a focal point in Cambridgeshire.
In Peterborough, nearly 18,400 referrals were made to bailiffs over the past year, translating to around 218 referrals per 1,000 households. Local authorities have defended their use of bailiffs, stating that they are required to recover unpaid debts in order to responsibly manage public funds. Officials also noted that population growth in the area, along with increased parking enforcement, has contributed to the rise in bailiff referrals. The use of multiple enforcement agents in recent years has also inflated referral figures, as debts may be passed between different agents.
A More Measured Approach in Fenland
In contrast to Peterborough, Fenland District Council, which made over 3,200 bailiff referrals, adopts a somewhat different strategy by handling most debt cases through an in-house enforcement team. This approach, which accounted for over 2,000 cases last year, allows for more direct engagement with residents and extends the compliance period before external bailiffs are called in.
Council representatives explained that external agencies are only used in cases where the in-house team cannot engage with the resident or when the individual lives outside the region. The council emphasised that its priority is to avoid enforcement action where possible and to encourage early communication from residents facing difficulties. This strategy aims to ensure that debtors can access support and repayment plans tailored to their circumstances, rather than immediately facing the prospect of bailiff action.
Lower Bailiff Use in Cambridge and South Cambridgeshire
In Cambridge, the council referred bailiffs to 1,309 households for council tax arrears in the past year, equating to roughly 25 referrals per 1,000 households. The council reiterated its commitment to working closely with residents experiencing financial difficulties, aiming to resolve issues before resorting to enforcement. They emphasised that while the use of bailiffs remains a last resort, it is sometimes necessary when all other attempts to recover unpaid taxes have failed.
Similarly, in South Cambridgeshire, fewer households faced bailiff action, with just 1,309 cases referred for council tax arrears. Council officials pointed out that only 2% of households were subject to bailiff referrals, and in none of these instances were goods removed from homes. They stressed that bailiff use is only considered after numerous warnings and when residents fail to respond to payment notices. In these cases, they underscored that enforcement agents are trained to identify vulnerable individuals and provide appropriate support.
Striking a Balance in Huntingdonshire and East Cambridgeshire
Huntingdonshire and East Cambridgeshire councils also made use of bailiffs to recover unpaid council tax, with referral rates of around 25 and 36 per 1,000 households, respectively. In both areas, councils acknowledged their legal responsibility to collect taxes but emphasised that enforcement agents are used only after other methods, such as payment arrangements, have been exhausted.
In these districts, local authorities are working with debt advice organisations to ensure residents have access to support before enforcement action is taken. Council representatives also highlighted the importance of early communication, urging anyone struggling with payments to seek help before the situation escalates. Like other councils, both Huntingdonshire and East Cambridgeshire use enforcement agents who adhere to strict guidelines for identifying and supporting vulnerable individuals.
Calls for Reform and Compassionate Debt Collection
Despite councils defending their use of bailiffs as a necessary measure for recovering public funds, critics argue that more compassionate alternatives must be explored. Charities dedicated to debt relief have called for local authorities to adopt formal policies that better protect vulnerable residents from aggressive debt collection practices. Some councils in other parts of the country, such as those in London, have already made the decision to eliminate bailiff use altogether in favour of early intervention and support for struggling households.
Research has shown that only about half of local councils in England and Wales currently have policies in place to formally recognise and support vulnerable residents. These policies typically involve extending repayment deadlines, pausing debt collection, or providing links to broader support services. While most councils claim to direct residents in debt towards charities for assistance, critics argue that more could be done at the local authority level to offer tailored support before enforcement action is pursued.
Looking Ahead
As household debt continues to rise, particularly in the context of the cost-of-living crisis, councils across the UK will need to carefully consider how they approach debt recovery. The current reliance on bailiffs in areas like Cambridgeshire may face increasing scrutiny as pressure mounts for more compassionate, resident-focused approaches to council tax collection. Balancing the need to collect public funds with the responsibility to protect vulnerable households remains a challenge, but as some councils move towards reform, others may follow suit.
In the months ahead, it will be important to watch how local authorities respond to calls for change, especially as the economic situation remains uncertain. Addressing the root causes of council tax arrears and providing better support to residents in financial distress could be key to reducing the need for aggressive enforcement measures like bailiffs.
