MP calls on council to ditch debt collectors
Vulnerable households can be helped by Citizens Advice
STOCKPORT council has been urged to ditch debt collectors who add ‘fear and stress’ to residents struggling to pay their bills.
Labour MP Navendu Mishra said the council can protect its income and help vulnerable households by signing up to the Citizens Advice ethical debt collection protocol.
The town hall has recovered nearly £10m from debt collectors since 2019 according to a freedom of information request, with more than 20,000 cases of unpaid council tax passed to Jacobs Enforcement.
This covers both Lib Dem and Labour administrations at the local authority.
The debt collection firm charges fees on top of unpaid council tax, including £75 for a notice of enforcement, £235 when an agent visits their home, and £110 for the removal of goods.
These charges are set in accordance with national law, and not by the debt collection firm.
The Lib Dem Group in Stockport said it has already been working on adopting the Citizens Advice ethical debt collection protocol and will do so shortly.
Mr Mishra said: “The cost of living crisis has left many people in Stockport and across the country struggling financially.
“The use of bailiffs compounds this, adding fear and stress to the hardship many already feel.
“My concern is that when debt is passed to enforcement agencies the amount of arrears increase substantially adding further hardship and worry to people who are already suffering financially.
“Stockport Council must sign up to the Citizens Advice charter for ethical debt collection, because this represents an opportunity for the council to improve people’s lives and behave ethically, while continuing to protect their vital revenue.”
The Labour MP has previously spoken in Parliament about a constituent who was ‘hounded’ by a debt collection agency over a £681 bill after she was unable to work due to lockdown.
He called it an ‘inappropriate course of action’ to use debt collection agencies against people who want to pay but are struggling financially.
Stockport Labour leader, Councillor David Meller, said: “I appreciate that councils, at times, will need to use enforcement agents.
“Ultimately, councils need to be run responsibly and financial prudence is key to that.
“However, it can’t be right that a private company can charge such exorbitant fees to people that are already in financial difficulty.
“I can confirm that when Stockport Labour regain control of Stockport council, I am committed to implementing the Citizens Advice Bureau’s charter on debt collection.”
The Citizens Advice Council
Tax Protocol calls on town halls not to use enforcement agents when a resident receives council tax support, and to have a published policy on vulnerable residents.
It also asks councils to work with enforcement and advice agencies to help people pay their council tax bills while getting debt advice.
Stockport council already offers help to residents who are struggling to pay their council tax in different ways, including using caseworkers and through council tax relief schemes.
Cllr Jilly Julian, cabinet member for finance and resources at Stockport council, said: “Liberal Democrats oppose council tax in principle because it is an unfair and regressive taxation model.
“But, along with business rates, it forms a significant part of the council’s ability to fund critical services.
“In Stockport, we have a council tax discounts scheme intended to support those who need it most. It’s also why we have advice and support services to help people maximise their income, provide crisis support, and help them with longer term money management.
“However, it is very important to make sure that those who can pay, but simply refuse to, do pay their fair share, along with everyone else.
“We have already been working towards adoption of the Citizens Advice Bureau Council Tax Protocol, which will happen shortly.
“Labour could have adopted the Protocol during their six years as an administration, but they clearly did not believe it was a priority at that time.”
Jacobs Enforcement was contacted for comment.
‘The cost of living crisis has left many people in Stockport and across the country struggling financially. The use of bailiffs compounds this, adding fear and stress to the hardship many already feel’
MP Navendu Mishra