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Bailiff referrals skyrocket by 20% over council debts

THE number of bailiffs summoned to collect council debts in England and Wales surged by nearly 20 per cent compared to last year as millions struggle to make ends meet.

A Freedom of Information request by the BBC compared the rise in referrals between April and October 2023 to the year before.

Birmingham City Council, forced to declare itself effectively bankrupt in September, saw referrals rise by 500 per cent, and called in bailiffs 43,283 times within seven months.

The debts included council tax bills, parking fines, the non-payment of business rates and housing arrears. 

Joe Cox, senior policy officer for charity Debt Justice, warned that the collection process “pushes people further into debt,” as once a bailiff is involved, fees mount up.

Last year, the Guardian exposed a significant surge in profits for bailiffs hired by councils to recover debts.

Newlyn Group saw its turnover from debt collection increase by 43.8 per cent to £25.8m, while Marston Holdings made £23.1m operating profit after the number of its cases surged by 50 per cent.

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