Debt enforcement agents collect £1.2m of unpaid Wakefield council tax a year

The figure is revealed as Wakefield Council looks to appoint two companies to carry out debt collection and bailiff services on behalf of the local authority.

Enforcement agents are responsible for debts including unpaid council tax, business rates, parking fines and benefit overpayments.

A report to senior councillors states enforcement agents are only used as a ‘last resort’, but adds: “It is important for the council to collect income and debt that is owed to it.

“This income forms a significant part of the funding needed to support the delivery of the range of essential services to residents.”

The report, to be considered by cabinet members, says the council takes a “considerate approach” to the collection of income.

It includes offering a council tax support scheme, payment flexibility and ensuring residents have access to free debt advice.

The report continues: “The council only refers cases to enforcement agents as a last resort and when there is no other way to recover the debt.

“Prior to this, the council will have sent bills and reminders, and issued court summonses.

“The preference is therefore not to refer cases to enforcement agents and very much to encourage and welcome people who may be struggling to pay, to contact the council as soon as they can to agree a suitable payment arrangement.

“The main reason that the council refers cases to enforcement agents is because there has been no contact from the debtor and therefore the council is not aware of why the debt is outstanding.

“Whilst being a ‘last resort’, enforcement agents form a part of the council’s debt recovery options, undertaking debt collection and traditional bailiff services, including High Court enforcement.”

The council began contracts with two enforcement firms in March 2019 that are due to expire.

According to the report, one of the key contract aims is to: “Reduce the level of risk of damage to the council’s reputation by contracting with suppliers that have robust collection processes and complaints procedures in place, as well as appropriate policies for dealing with vulnerable people.”

Cabinet members are being asked to agree a recommendation to undertake a procurement exercise to appoint enforcement agent services for the council.

The report also adds: “The council does not have to appoint enforcement agents.

“However, at no cost to the council, on an annual basis, they collect approximately £1.2m of unpaid council tax, as well as other council debts.

“If the council did not have the use of this option, it is unlikely that this level of debt would be collected.”

At the same meeting, on Tuesday February 14, cabinet is expected to approve budget proposals which include a range of measures designed to bridge a £24m funding gap.

Proposals include a maximum rise in council tax, ending free parking and making cuts to some services.