Alan J. Smith, Chair of the High Court Enforcement Officers Association says the recent publication of new values and standards by the Enforcement Conduct Board are an important step forward, but that urgent action from government is needed on enforcement fees to ensure that the sector can continue to innovate and support this progress.
It’s certainly been a busy autumn at the Enforcement Conduct Board (ECB).
The publication of its new values and standards for the enforcement profession came after an extensive consultation and was swiftly followed by another consultation on its proposed new complaints handling process.
The HCEOA responded to both on behalf of its members, and we’ve been pleased to see that the ECB is engaging with all stakeholders and listening to practical concerns raised by the enforcement sector as to how it brings in these new standards, which we fully support.
But what does it all mean?
For anyone who is unaware, the ECB is the independent oversight body for the enforcement industry. It was set up with agreement between the enforcement profession and leading debt advice charities including Money Advice Trust, Christians Against Poverty and Step Change.
New standards for the enforcement sector
For now, the ECB’s new standards will work alongside the Ministry of Justice’s existing National Standards, which were introduced in 2014, but the new ECB version covers a wider range of areas.
It has developed two linked sets of standards – one for enforcement agents and one for enforcement firms – to ensure that enforcement agents and people subject to enforcement action know what fair enforcement means in practice.
Together, they will be an important part of ensuring a fair and effective enforcement system. That’s what the profession wants to see, and it’s what the public believes we need.
We know this because our public perception survey of 2,000 people across England and Wales earlier this year showed very strong support for a fair and effective enforcement system – 83% of respondents agreed or strongly agreed that it is a necessary part of the justice system.
That is what our members are fully committed to delivering.
Urgent action needed on enforcement fees
The new standards have been welcomed by the HCEOA against a backdrop of government inaction on enforcement fees stretching back more than a decade, despite a commitment at the time for fees to be reviewed annually in line with inflation.
This means the enforcement profession is today facing a major funding challenge, caused by the failure of the previous government to follow the Ministry of Justice’s own guidance and recommendations over the past ten years.
At the time the regulations were drafted the Government commissioned economic analysis to design a fair and effective fees mechanism which concluded: “the level of fees should be adjusted annually to track inflation.”
It simply hasn’t happened. Since the statutory fees were introduced in April 2014, inflation has eroded the real value of the fees by 24%.
The position is out of step with significant fee increases at HMCTS during that time, and the situation in Scotland, where enforcement fees have increased five times since 2014.
Over the last five years, CIVEA and HCEOA members worked on around 15 million cases and collected approximately £2 billion in outstanding debt on behalf of thousands of local authorities, businesses and individuals across England and Wales. Recovering this debt effectively helps ensure that today’s creditors don’t become tomorrow’s debtors.
A viable enforcement fee structure is critical to delivering this. Without it, there is a greater risk of more debts going unpaid, generating a lack of confidence in the system that could discourage investment, reduce vital funds available to local councils and jeopardise economic growth.
This approach to reviewing fees is not new. It was originally set out in Labour’s Tribunals, Courts and Enforcement Act of 2007 which set the scene for the introduction of the Taking Control of Goods Regulations.
Labour may only be a few months into its new administration, and we cannot hold it responsible for the actions of the previous government. However, urgent action is needed to ensure important initiatives like the Enforcement Conduct Board and its new standards can continue to be funded.
