A new report demonstrates significant progress is being made recovering debt owed to Liverpool City Council.
As part of the local authority’s improvement journey, determined efforts are being made to improve the collection of money which helps fund vital services.
The successes include:
- A £2.1 million reduction in overall sundry (one-off payment) debt receipts due to clearer guidelines and procedures for identifying, categorising, and addressing debts in a timely manner.
- Roll-out of electronic invoicing and reminders which has reduced the clearance time for invoices from 51 to 34 days and cut postage costs by £6k.
- Progress in reducing housing benefit overpayments – down from almost £20 million in April 2023 to £15.6 million.
- Recovering £1.8 million of the top 30 adult social care debts.
Council Tax arrears have also reduced by £5.6 million since April 2025 – and £12.8 million since 2020 – thanks to the introduction of flexible payment plans allowing residents to spread payments more effectively over the year, together with improved use of reminders to households.
Measures including better communication, support and guidance has resulted in a £1 million decrease in outstanding Business Rates this year, which is down £2.1 million since 2020.
Since April 2023, Transactional Services’ Financial Inclusion team has supported residents to increase their income by £22,414,551, such as by claiming benefits they are entitled to. Some backdated gains have been in the tens of thousands of pounds. The council continues to be committed to ensuring that residents receive all the income they are entitled to.
Deputy Council Leader and Cabinet Member for Finance, Resources and Transformation, Councillor Ruth Bennett, said: “Every pound of income we are owed is earmarked for valued services for our residents, so it is vital we ensure that we reduce the strain on our finances by ensuring bills are paid in a timely manner.
“We have seen a marked improvement over the last couple of years thanks to our relentless focus on financial improvement. As well as streamlining our systems and processes, we now proactively reach out to businesses and individuals who are struggling to help develop a repayment plan. These early intervention measures contribute to a higher rate of successful debt resolution and are part of our commitment to supporting people.”
In common with other local authorities, the council regularly reviews its bad debt provision. This ensures that the amount on the council’s balance sheet is an accurate reflection of the money the council can expect to recover. So far this year, around £13.5 million has been written off, in circumstances where, for example, an individual has passed away or a business is no longer in existence. The amount written off each year is expected to reduce in future as improvements are made in the recovery of debt.
