Government to launch new debt management scheme

Government officials have revealed a new scheme that they hope will help collect tens of billions of pounds of debt from people across the UK.

It i…

Government officials have revealed a new scheme that they hope will help collect tens of billions of pounds of debt from people across the UK.

It is estimated that around £22 billion could be gained if the move is successful, with cash coming from unpaid taxes, benefit fraud and unpaid loans, as well as much of the money that is lost each year from court costs that could be avoided.

The collection process will be carried out on behalf of the government by Integrated Debt Services Limited, an organisation that is joint owned by the coalition and the TDX Tax Group.

Much of the data regarding money that is owed will be supplied by a whole host of government departments – recognising that debt management in the UK is not restricted to one area of the economy or a specific source.

Minister for the Cabinet Office Francis Maude explained that the scheme will be one that is long terms and very complex, but added that its successful implementation over a number of years could bring significant benefits in terms of reducing the budget deficit in the UK.

He said: "Establishing this company is an innovative approach which will build a sustainable and world-class recovery service for the public sector, and intelligently tackling a complex problem."

It has been confirmed that Debt Services Limited will have two main aims. The first will be to build on the government's most effective debt collection systems from the past, using these to track debtors as closely as possible.

secondly, there will also be a drive to make the best of new technology and analytical techniques to work out just how much of a financial gap there is across the country because of unpaid debts.

By Amy White

Tell others:

shortlink