Full list of UK towns and cities where 'worst loan sharks' are chasing unpaid bills

Shocking new data has revealed where local authorities are chasing unpaid council tax bills by sending round the bailiffs.

More than 2.7 million debts were referred to bailiffs by local authorities in England and Wales during the 2022/23 financial year according to research conducted by the Money Advice Trust.

It comes as Martin Lewis described the practices used by the councils to collect council tax and other bills as a "caricature of the worst loan sharks".

The findings, based on Freedom of Information requests to local authorities, revealed that 1.3 million UK households fell behind on their council tax bill in 2022/23, with many councils relying on a bailiff door knock to recoup the cash.

The London Borough of Croydon referred the most debts, with bailiffs being sent to 36,122 customers with council tax arrears, reports The Sun which has published a map on the findings.

Next on the rundown is Barnet Council which referred 34,956 customers followed by Lambeth which referred on 29,629 debts.

Liverpool referred the most customers outside of London at 27,435 and Somerset made 24,587 referrals.

Martin Lewis said: "The grotesque process couldn't have been designed better to accelerate distress for people in council tax debt, especially those with mental health problems."

He added: "When someone misses a monthly payment, rather than asking 'how can we help', many councils say 'now you have to pay 12 times that' - it's like a caricature of the worst loan sharks.

"Of course, councils have faced major budget cuts, and some are struggling to survive - a policy challenge the new government must address.

"Yet plugging budget gaps by ramping up punitive action on people in debt, a significant majority of whom have mental health problems won't fix that."

As well as council tax debts bailiffs were also chasing parking debts, benefit overpayments, business rates and commercial rents.

While a majority of local authorities have decreased their use of bailiffs overall, the research found only limited improvement in debt collection practices in recent years.

Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, said: "Local authorities across the country remain under significant financial strain and council tax collection plays a crucial role in funding vital local services. But with more than 1.3 million people struggling with council tax arrears, the scale of the use of enforcement agents by councils remains far too high.

"Facing bailiff action can be a deeply distressing experience, and risks pushing people who are already struggling into further financial difficulty. We need urgent action from central and local government to address this problem.

"The new Government could help by introducing ring-fenced funding to enable all councils to provide 100 percent Council Tax Support to households on the lowest incomes. And all local authorities should commit to taking active steps to improve their debt collection practices, so that fewer debts need to be passed to bailiffs in the first place.

"While progress has been slow, more and more local authorities are understanding the need for change. We will continue to work with councils to help them improve their practices - and our National Debtline advisers are here to help with free, independent advice for anyone struggling with their finances."

A Barnet Council spokesperson told The Sun: "Ultimately, it is everyone's duty to pay their council tax, and it is our duty to collect it - not enforcing would mean abandoning those who need the council's services."

• Leeds
• Oldham
• Manchester
• Salford
• Liverpool
• Sheffield
• Crewe
• Macclesfield
• Knutsford
• Nottingham
• Leicester
• Peterborough
• Conventry
• Birmingham
• Dudley
• Wolverhampton
• Cornwall
• Somerset
• Buckinghamshire
• Reading
• Enfield
• Barnet
• Waltham Forest
• Redbridge
• Islington
• Brent
• Ealing
• Hownslow
• Westminster
• Wandsworth
• Lambeth
• Croydon
• Bromley
• Lewisham
• Barking and Dagenham
• Bromley