Borough to set up in-house bailiff service in new approach to debt recovery

The London Borough of Brent is to create an in-house bailiff service as part of its new fair debt recovery policy.

The council said budget pressures had made recovery of debts “hugely important” and this was likely to become more pressing as the grant system ends.

Its cabinet approved the in-house bailiff service and said that to implement performance related pay it would be justified to recruit enforcement agents outside the council’s standard employment terms and conditions.

A cabinet report found a need for a council-wide approach to debt recovery, under which “officers are able to take a proportionate and consistent approach to recovery, which enables them to be firm where appropriate”.

The policy would be designed to ensure that the most vulnerable residents are protected but those that refuse to pay are tackled.

Brent issues bills of various kinds amounting to some £300m each year, but as at 31 March this year it was owed nearly £90m, including £35m in housing benefit overpayments and £31m in council tax and business rates.

The report said the council was viewed as a ‘soft creditor’ as there had long been inconsistent enforcement and a reluctance to take action against people seen as vulnerable.

Council departments had varied arrangements with private sector debt collectors for pursuing defaulters and the report said: “Existing arrangements generally come at zero cost to the council, and minimise our exposure to this commercial activity. However, in light of the council’s wider civic enterprise agenda…there may be value in altering this approach in order to take greater control of individuals who enforce debts for the council, and to retain income generated by statutory fees, rather than passing this on to private sector enforcement agents.”

Deputy Leader Margaret McLennan said: “The council is currently owed millions in unpaid debts which is significant in the context of the substantial and ongoing Government cuts to council funding and the increasing demand on our services.

“Whilst I'm very pleased that this strategy has been approved, it's crucial for us to introduce it carefully and with thought. We will assess each case individually and make sure that our most vulnerable residents are protected and that everyone is offered the right time and support in order to help them pay off their debt.”

Mark Smulian