Figures published by the Money Advice Trust obtained via Freedom of Information requests to all 374 local authorities in England and Wales, showed just how frequently local authorities use debt collectors to chase bills.

Local authorities most commonly refer council tax arrears, business rate arrears, and parking fines to bailiffs for collection.

Money Advice Trust is calling on local authorities to be more responsible in managing their debt collection.

There is ‘extreme variation’ across the 374 different local authorities in England and Wales as to how frequently bailiffs are called in.

Birmingham City Council, the largest local authority in the UK, referred debts to bailiffs on 82,329 occasions in the last 12 months – equivalent to 17% of total properties in Birmingham.

The London Borough of Newham council referred 55,652 cases to bailiffs – equivalent to nearly half of the total properties under its authority.

Joanna Elson OBE, chief executive of the Money Advice Trust, said: “These figures make clear that something has to change. It is not economically or socially responsible for local authorities to continue to use bailiffs so frequently. Our experience through National Debtline shows us first-hand how bailiffs can deepen debt problems, rather than solve them.

“Local authorities seem to be assuming that anyone not paying debts is a ‘won’t pay’, rather than a ‘can’t pay’. In today’s economy, with real incomes having fallen consistently for many years, more and more people are falling into the ‘can’t pay’ bracket – sending the bailiffs in to collect these debts can be very destructive, both financially and psychologically.”

Excessive bailiff use isn’t restricted to larger authorities, with Merthyr Tydfil Council referring 6,094 debts to bailiffs, equivalent to 22% of the total properties under its authority.

Council tax arrears are the third most common debt type dealt with by National Debtline.

In the first half of this year the service took over 20,000 calls for help with council tax, a record in its 23 year history and an increase of 61% on five years ago, and 13% over last year.

Elson added: “This is a problem with a clear solution. The Local Government Association has supported a protocol, established by Citizens Advice, which makes clear how authorities should handle collection of council tax arrears.

“Authorities which have signed up to the protocol have maintained healthy collection rates. We firmly encourage all local authorities to consider their debt collection practices, especially following the abolition of national Council Tax Benefit and the introduction of localised Council Tax Support.”

Citizens Advice chief executive Gillian Guy said: “I’m concerned that in some cases councils are too quick to pass debts to bailiffs. Half of people we help with bailiffs problems are families with children. A bailiff turning up at the doorstep of your home is frightening.

“Local authorities have a duty to protect and support the people who live in their communities. They need to recognise the current squeeze on household finances. If a family is struggling to pay their council tax bill it is quite likely they are battling other bills too. It should be an alarm bell for the authority that people need help.

“The move from council tax benefits to a localised support scheme means fewer people who are on a financial knife-edge will get help with their bills, and puts more people at risk of bailiff action.”

The top bailiff referrers in England and Wales

 source: Money Advice Trust