A leading academic has warned that the way councils recover unpaid debts is exacerbating child poverty in the UK, with public sector debt collection often proving more punitive than private sector practices.
Professor Morag Treanor, an expert in social policy and inequality at the University of Glasgow, argues that families struggling with unpaid council tax or rent arrears are often willing but unable to pay, and that aggressive debt recovery tactics—such as deductions from benefits and wages—only push them deeper into financial hardship.
Public Debt Collection Fuelling Financial Crisis
As Scottish councils finalise their budgets, Treanor’s analysis of official data—supported by interviews with low-income families—suggests that cuts to essential support services are compounding the issue, leading to greater long-term expenditure.
“We need to address the root causes of poverty,” Treanor stated. “Right now, the way public sector organisations pursue debt is actively trapping families in financial crisis. But if handled differently, it could instead help them break free.”
Her research underpins growing calls for better communication between public sector organisations—often pursuing the same family for different arrears—and a more compassionate approach to debt collection, particularly in cases involving vulnerable households.
Council Tax Arrears and the Lack of Human Oversight
Treanor highlighted how swiftly council tax debt can escalate. A missed monthly payment can trigger an automatic demand for the full annual amount within weeks, with the process often driven by automated systems rather than human discretion.
“There is frequently no opportunity for human intervention,” she explained. “Once a missed payment is flagged, the system rapidly moves forward, compounding financial distress for families who are already struggling.”
Her findings will be presented at a major conference on child poverty and public debt, co-hosted by the University of Glasgow and children’s charity Aberlour.
Women and Single Mothers Hit Hardest
Treanor’s research also reveals that women—particularly single mothers—are disproportionately affected by public debt collection practices.
Many find themselves trapped in a cycle of financial instability as benefits are deducted at source to cover debts, often shared with a former partner.
Although the UK Government recently introduced a 15% cap on Universal Credit deductions for arrears, Treanor suggests that, in reality, multiple creditors can take up to 40% before payments even reach recipients.
The study also found that Scotland’s debt recovery laws are harsher than those in England and Wales, where council tax arrears are written off after six years, compared to Scotland’s 20-year pursuit period.
A New Approach: Debt as a Distress Signal
Treanor cited a pilot scheme in Northern England as a model for change. In this initiative, council tax arrears were treated as a sign that families needed help rather than a debt to be aggressively pursued.
“Instead of penalising struggling households, the council reached out to ask what was going wrong and how they could help,” she explained. “They kept the family at the centre, providing tailored support—and it worked. Councils should see arrears as a cry for help, not just another bill to chase.”
Calls for Reform and Greater Empathy
Treanor will deliver a keynote speech at the upcoming child poverty conference, alongside key figures such as Social Justice Secretary Shirley-Anne Somerville, Scotland’s Children and Young People’s Commissioner Nicola Killean, and Aberlour CEO SallyAnn Kelly.
Aberlour, which successfully lobbied for the Scottish Government to write off school meal debt last year, is now ramping up its campaign for systemic reform in public debt collection.
SallyAnn Kelly stressed the urgent need for greater compassion in the process, particularly for women escaping financial abuse.
“The way councils pursue debts like rent and council tax can completely derail a woman’s chance of rebuilding her life and achieving financial stability,” she said. “There are far better, more humane ways to handle this.”
With Holyrood’s Social Justice and Social Security Committee set to investigate financial pressures on women fleeing domestic abuse, campaigners are calling for a fundamental shift in the way public debt is managed—turning punitive measures into opportunities for meaningful support.
