Time for change: Our response to the consultation on bailiff regulation

We welcome this week’s announcement from the government on plans to improve debt-enforcement processes, particularly where the collection of council tax arrears is concerned. Greater protection for financially vulnerable people is long overdue, and we’re pleased to see the issue finally getting the attention it deserves.

At Money Wellness, we see firsthand the stress and hardship caused by poor debt-enforcement practices. While the majority of bailiffs act professionally and within the rules, those who don’t are rarely held accountable. Stronger regulation has the potential to change that – helping to create a more compassionate and consistent approach to debt recovery.

But while we welcome much of what’s been proposed, there are areas that still need work.

The good

The consultation includes some sensible proposals, including:

• bringing in clearer rules and accountability for bailiffs
• acknowledging the need for better support for people in financial difficulty
• allowing debt advisers to request a 28-day pause on enforcement activity

Where it falls short

There are a few areas that could potentially prove problematic:

Debt advice: Good debt advice, with benefit assessments and budgeting support, should be an integral part of debt collection. It’s paramount that local authorities include direct signposting to free debt advice providers that can help people struggling to pay their council tax.

Fee increases: The consultation proposes a 5% increase in the fees that enforcement agents can charge. This appears to have been decided without a proper market study to determine what’s fair and reasonable, and risks making life even harder for those who are already struggling.

Notice periods: Doubling the minimum notice period from seven to 14 days is unlikely to reduce the number of doorstep visits, as claimed. For people with no money to spare, an extra week won’t change their situation. What they need is tailored support, not just more time.

28-day adviser extension: While offering more time when someone is working with a debt adviser is a good idea in theory, in practice, 28 days often won’t be long enough. Councils must also make the process for requesting this extension simpler. That means:

• having a clear point of contact for debt advisers to request extensions – ideally an email address, not a call centre maze
• automatically granting the 28-day pause when a standard financial statement is provided as proof the person is engaging with a debt adviser.

What needs to change

If we want to fix debt enforcement for good:

Enforcement should be a last resort. Before sending in the bailiffs, councils should try contacting people to understand what’s going wrong and help them set up a payment plan. This has been a successful strategy for financial services firms, who rarely move to enforcement.

Fix the council tax rules. Right now, if you miss one council tax payment, you can quickly become liable for the whole year’s bill. That’s an outdated and punishing rule. The Welsh government is taking a much more sensible approach in its own consultation, proposing a 64-day period before full liability kicks in. England should follow suit.

Final thoughts

This consultation is a promising start, but real change will depend on the detail. If the government is serious about protecting financially vulnerable people, it must listen to those on the frontline, and make sure councils are better equipped to offer support before turning to enforcement.