Credit, Collections & Insolvency News
The UK government is to make households that are made homeless exempt from Universal Credit following reports that the new benefits system has led to an increase in rent arrears. According to The Guardian, local authorities in London have said that rent collection levels for homeless tenants placed in emergency accommodation have collapsed following the introduction…
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The National Audit Office (NAO) has published the findings of its investigation into the Department for Work & Pensions’ closure of its 1993 and 2003 child maintenance schemes. The 1993 and 2003 ‘Child Support Agency’ schemes struggled with IT problems leading to poor customer service, backlogs and incomplete information about amounts due. Inaccurate assessments can…
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The HMRC spend on private sector debt collection agencies to chase people who have fallen behind on their tax bills has jumped by 92% in just one year to £24 million according to latest figures released by UHY Hacker Young. This is compared to a spend of £12.5 million on private sector debt collection agencies…
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The Information Commissioner’s Office (ICO) has today published the results of a survey completed by local councils at the end of last year, along with a blog highlighting guidance available to help councils achieve compliance with the new General Data Protection Regulation (GDPR). Anulka Clarke, ICO Head of Good Practice, said “The overarching conclusion from our analysis…
Read moreThe Department for Work & Pensions (DWP) has downplayed the impact of the problems in the roll out of Universal Credit on claimants and local councils, claiming that rent arrears associated with Universal Credit “are likely to be of a short duration” and “should not present an insurmountable obstacle to landlords”. This is despite its…
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A new Public Accounts Committee (PAC) report into the use of benefit sanctions has revealed jobcentres and providers use them “inconsistently”, with some Work Programme providers referring twice as many people for sanctions as others in the same area. It also found the “severity” of sanctions – a reduction or suspension of payments because a claimant…
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HMRC’s Counter Avoidance Directorate collected £92 million in unpaid Stamp Duty Land Tax (SDLT) in the year 2015-16, according to Collyer Bristow. The amount collected has fallen from £301.2million in 2014-15, indicating that the government’s strategy and legislative changes have been successful in preventing SDLT avoidance opportunities, the law firm said. James Badcock, partner at…
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Salford city council has launched an ‘anti-poverty strategy’ which will ‘robustly review’ the Council’s debt collection practices. Salford Mayor, Paul Dennett has launched the initiative. Dennet said “We want our work to become a beacon of best practice in the fight against poverty.” The strategy promises a review of the Council’s debt collection. “Our collective debt collection…
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Aberdeen City Council’s debt will climb to more than £1.2billion by 2019 according to forecasts by financial officers. In a budget report, it is estimated the authority will owe a total of £1,205,669,000 by the financial year 2019/20 before the debt begins to fall again. Currently the debt stands at around £851million. In November, it…
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Dundee City Council has written off £12.8 million of debt in just three years according to local news sources. An investigation into the local authority’s finances has uncovered the large sums owed to the public purse that were written off between 2013 and 2016. That included more than £4.75m in unpaid rates from businesses, £2m…
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Hogan Lovells is advising the Department for Education (DfE) on its plans to sell £12 billion of student loan debt to the private financial sector. The firm is fielding a team led by deputy CEO David Hudd and London finance partner Julian Craughan. Weil Gotshal & Manges also has a role, advising Barclays which is…
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The Scottish Government plans to use its new social security powers for the first time to increase the frequency of Universal Credit payments and offer to pay housing benefits direct to landlords. While Universal Credit itself remains reserved, ministers will use new powers to give claimants the option to be paid fortnightly instead of monthly.…
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Marston Holdings (Marston) has announced that it has acquired NSL. NSL provides a range of outsourced services to local government, central government and business, including: issuing and processing of road traffic Penalty Charge Notices on behalf of local authorities; UK-wide vehicle excise duty enforcement on behalf of the Driver and Vehicle Licensing Agency; administration of…
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