Supporting vulnerable residents through ethical debt recovery
Across the UK, Council Tax debt is placing increasing pressure on both residents and local authorities. The government’s open consultation on modernising and improving the administration of Council Tax (June 2025) calls for a more compassionate and consistent approach to collection. Councils are being encouraged to take earlier, fairer action, especially where vulnerability is a factor.
Behind every unpaid bill is a human story
Unemployment, illness, bereavement, mental health challenges, low incomes, rising costs, and digital exclusion are often the real reasons why residents fall behind. Enforcement fees and sudden demands for full Council Tax annual payments can exacerbate the situation, pushing people deeper into personal financial crisis.
But there is another way.
Helping before harm occurs
Our Debt Assist service identifies people who are struggling and supports them before their situation deteriorates further. We utilise council and third-party data to understand each resident’s circumstances and likelihood of paying.
If someone cannot pay, we offer support; if they refuse and have capacity, they remain liable.
Debt Assist support includes:
- Personalised repayment plans that reflect what people can realistically afford
- A Benefits Calculator that helps residents claim financial entitlements
- Referrals to the Money Adviser Network and accredited debt advice services
- Face-to-face, wraparound support through the First Steps programme
First Steps: practical support that changes lives
First Steps is our in-depth, resident-facing support programme that helps people who need more than just a repayment plan. Delivered via trained welfare advisers, the service provides one-to-one guidance, access to benefits help, budgeting support, and referrals to trusted local services.
First Steps operates through direct engagement, including phone calls, emails, in-person visits, and community appointments. It offers a safe and proactive route to financial sustainability. It focuses not only on immediate arrears but also on long-term stability. Residents are supported for as long as needed to rebuild their financial confidence and avoid future crises.
Thousands of vulnerable individuals have already been supported through our First Steps programme, with measurable improvements in payment rates, mental wellbeing and trust in their local council.
How does this help councils?
Recovering aged debt and preventing people from falling into debt in the first place provides Local Authorities with short-term relief from budgetary pressure and enables them to provision and transform vital services for the future.
Debt Assist helps councils:
- Improve recovery rates, including previously written-off debt
- Reduce complaints and write-offs
- Build community trust and engagement
- Reduce reliance on enforcement
- Support social value, inclusion, and ESG priorities
Debt Assist helps residents
In one borough alone, we helped identify £121,000 in additional monthly benefits. Across our client base, Debt Assist has delivered a 70% recovery rate for supported residents, with an average of £10,000 per year in additional benefits found per eligible household.
Debt Assist in practice: alignment with Government proposals
The Government’s consultation outlines clear changes to how Council Tax arrears should be managed:
| Consultation Proposal | Debt Assist Response |
|---|---|
| Improving support for households in arrears, including exploring the use of welfare and entitlement checks before enforcement | Debt Assist performs segmentation, checks for unclaimed benefits, and signposts residents to accredited debt advice before considering enforcement |
| Seeking views on whether councils should offer payment plans before applying for a liability order | Debt Assist provides tailored repayment plans based on affordability, often preventing the need for liability orders |
| Reducing reliance on enforcement agents by using more proportionate, consistent methods | Debt Assist is a non-enforcement model that recovers debt ethically and removes vulnerable residents from the enforcement pathway |
A smarter role for enforcement
Enforcement still has a role to play, and Debt Assist doesn’t replace it. Instead, it ensures enforcement is focused where it works best: on those who refuse to engage or have the means but choose not to pay.
By drawing a clear line between “can’t pay” and “won’t pay”, councils can protect those in need while making more efficient use of enforcement resources.
Why councils are choosing a different path
As the squeeze on household budgets continues and the pressures on public services grow, councils need to find more effective ways to recover their debts while supporting vulnerable residents.
Debt Assist allows councils to redirect resources to where they matter most, rather than adding another process.
By identifying residents who are struggling and offering them support instead of sanctions, councils can:
- Prevent individual residents’ crisis and protect community wellbeing
- Recover more income from debt that would likely go unpaid
- Reduce complaints, reputational risk, and write-offs
- Build trust with residents, partners, and regulators
This is about more than compliance with government guidance. Local Authorities have an opportunity to lead a fairer, more effective way to collect debts.
Debt Assist already aligns with the consultation’s aim, and it gives councils the tools to lead where policy is heading.
