Deciding how to deal with uncollected debts is something which many businesses have to face. It is also a problem which the Government are currently grappling with.
With uncollected debts in the region of £22.6 billion, the Government recently announced a new joint venture with the private sector to help tackle this.
Integrated Debt Services Limited (IDSL), a company which is jointly owned by the Government and TDX Group, has been set to provide a single point of access for debt management and collection services for a number of Government departments.
The service will launch initially with 6 departments, HM Revenue & Customs, the Department for Work and Pensions, the Home Office, Student Loans Company, the Legal Aid Agency and the Driver and Vehicle Licensing Agency.
Using private sector organisations to assist in the collection of Government debts has historically helped to improve debt recovery rates for government departments.
It is hoped that IDSL will provide the Government with the ability to access best value private sector knowledge and expertise. Which, coupled with a cross-departmental approach, should further improve recovery rates.
We can only wait and see whether this leads to more insolvency appointments…