How do councils fund ethical debt recovery?
An ethical debt recovery service designed for councils and residents.
Our ethical debt recovery solution, Debt Assist, has two stand out factors:
- More money is collected
- Individuals’ debts are not added to
The Ministry of Housing, Communities & Local Government’s 2025 consultation calls for earlier intervention, fairer payment plans, and appropriate use of enforcement, especially for vulnerable households. This is prompting councils to find more sustainable and reasonable ways to collect debt.
At Liberata, we go to great lengths to make it clear that we provide appropriate support for those in debt and don’t use enforcement. So, you might reasonably ask:
“How exactly is Debt Assist paid for, and who covers the cost?”
Well, the answer is simple. Local Authorities do.
Because Debt Assist targets debts of all sizes, not just the ‘big ticket’ cases, and uses subtler collection methods, it enables higher recovery rates. This means more money in the council coffers, which offsets the charges. All without pushing residents into further debt.
Debt Assist payment options
Unlike traditional enforcement models, Debt Assist does not add fees to the accounts of residents in debt. Instead, councils fund the service through two options.
Fixed-fee
We agree to a contract stating fees, expected collection values, and SLAs before the Debt Assist service commences. Our fee is calculated on a cost-per-case basis and is usually paid in equal instalments across the service term. Typically, this can be over three invoices, although some councils prefer to pay upfront. This option is great for councils who prefer to have certainty of their procurement costs.
Gain-share
You only pay when money is successfully recovered (so no-win, no-fee as they say). Our fee is a percentage of the amount collected. Our average fee ranges from 20% to 25%, depending on various factors, including the quantity and age of your debts.
Why this is a smarter approach
Traditional debt enforcement has remained largely unchanged for decades, and there is now a growing recognition within government and the industry itself that it often creates more problems for those already in debt. Using escalating fees leads to customer disengagement, increasing debt levels and long-term arrears. Debt Assist changes that by treating recovery as a service, helping people to break the debt cycle.
With Debt Assist, councils can:
- Recover more from all debt types, big, small, aged, or new, even previously written-off debts
- Reduce your total write-offs
- Support residents in financial crisis and help prevent others from going into long-term debt
- Align with Environmental, Social and Governance (ESG) and inclusion goals
- Lower complaints and reputational risk
All without sacrificing revenue or adding stress and hardship to residents.
Ready to change the way you recover debt, for good?
We’re already working with councils across the UK to break cycles of debt, increase collections, and protect residents.
Get in touch to discuss how you can get started with ethical Debt Recovery.
