Like many other businesses, the government also faces the problem of uncollected debts. Their current amount of uncollected debts is an estimated £22.6 billion and they have announced plans to reduce this with the help of the private sector.
‘Integrated Debt Services Limited’ (IDSL) is a company which is jointly owned by the government and TDX group. It has been set up to provide a single point of access for debt management and collection services across government departments. The service will initially launch with: HM Revenue & Customs, the Department for Work and Pensions, the Student Loan Company, Legal Aid Agency and the Driver and Vehicle Licencing Agency.
In the past, the use of private sector organisations to assist in the collection of government debts has helped to improve debt recovery rates for government departments. With this cross departmental approach and access to private sector knowledge and expertise, it is hoped that this will improve recovery rates.
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