The government is collaborating with the private sector to claw back a massive £P22.6 Billion in un-recovered debt. The resulting new organisation, called Integrated Debt Services Limited, is owned jointly by the government and the TDX Group, part of Equifax.
Integrated Debt Services streamlines un-recovered £££££ collection
From 2016 IDSL will provide a single point of access to a broad range of debt management and collection services covering several government departments as well as the wider public sector. At first the new company will work with just six ‘customers’, namely HMRC itself, the Legal Aid Agency, DWP, Home Office, Student Loans Company and DVLA.
More than half of a year’s total debt up for grabs
The current multi-billion pound debt is spread amongst multiple debtors who owe unpaid and un-recovered taxes, fees, fines, loans, benefits, grants and court costs. Given that the government collects more than forty billion pounds debt a year, £22.6bn is a vast amount of outstanding revenue and well worth adding to the country’s coffer, by hook or by crook.
Recovering more debt faster and more effectively
Of course the nation already uses private sector debt collection agencies. The government says the practice has already helped them improve debt recovery yields significantly. But the new initiative, with its focus on returning even more money via a single consistent tool, is hoped to gather more debt into the fold, faster and more efficiently.
Good news for Britain as a whole
Why is it good news for us all, taxpayers and otherwise? It’s simple. Improving tax collection and reducing arrears means local councils make considerable savings, which keeps our council tax bills down and protects vital frontline services.