Estimated Value
£850,000 – £0
Deadline
31 March 2026
Published
8 June 2026
Type
services
Overview
The London Borough of Tower Hamlets will run a pilot using the Debt Assist product, a unique offering in the market designed to support ethical debt collection for local authorities. Importantly, the Council does not incur any cost unless the supplier successfully collects.
Spend is directly linked to recovery performance, giving us control over costs based on referral volumes. This is for an 18-month contract.
The initial pilot will cover various debt streams including Housing Benefits Overpayments, Sundry Debts [including ASC], Parking including PCN notices, and may include Council Tax and Business Rates as required. This list is not exhaustive and may be amended as required throughout the lifetime of the Contract.
AI Analysis
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Tower Hamlets Council wants to hire a supplier to collect outstanding debts using the 'Debt Assist' product on their behalf for 18 months. The Council only pays the supplier when they successfully collect money from debtors — so the supplier takes on the collection risk, and the Council controls costs based on how much debt it refers to them.
Requirements
- Must offer the Debt Assist product specifically
- Must be capable of ethical debt collection practices
- Must be able to handle multiple debt streams: Housing Benefits Overpayments, Sundry Debts (including Adult Social Care), Parking including PCN notices, and potentially Council Tax and Business Rates
- Must operate on a no-win-no-fee basis (payment only on successful collection)
- Must be able to scale collection activity based on referral volumes set by the Council
- Must accept that debt streams covered may change during the 18-month contract period
Key Tasks & Deliverables
- Collect outstanding Housing Benefits Overpayments on behalf of the Council
- Collect Sundry Debts including those arising from Adult Social Care services
- Collect Parking debts and Penalty Charge Notice (PCN) payments
- Prepare to collect Council Tax arrears and Business Rates arrears if and when the Council refers them
- Report on collection performance and recovery amounts achieved
- Adapt collection activity as the Council adds or removes debt streams throughout the contract
How to Read This Tender
- 1This is a 'no-win-no-fee' or performance-based contract — you only get paid when you successfully collect money. Budget carefully for upfront costs (staff, systems, processes) as cash flow will depend entirely on what you collect.
- 2The phrase 'pilot' signals this is a test: the Council may expand it, shrink it, or end it based on results. Don't assume 18 months means guaranteed revenue — performance will be reviewed.
- 3Watch for the phrase 'may be amended as required' — debt streams can be added or removed without notice. You need flexibility in your staffing and systems to handle that.
- 4Debt collection in the UK is heavily regulated (Consumer Rights Act 2015, Proceeds of Crime Act, data protection). Make sure you have compliance expertise in-house or via partners before bidding.
- 5The Council says 'spend is directly linked to recovery performance' — this means they'll track your collection rate closely. Go into the full tender documents to find expected recovery targets or benchmarks.
Tips for Small Businesses
- Consider partnering with a larger debt collection firm as a subcontractor if you lack the back-office infrastructure (compliance, IT systems, staff). Many councils accept consortium bids. This spreads your risk and lets you focus on what you do well.
- Build a detailed financial model showing break-even point and cash flow. With no upfront fees, you need enough working capital to cover staff and systems for months before collections start. Many SMEs fail on cash flow, not capability.
- In your bid, emphasize your 'ethical debt collection' approach — use social value scoring and explain how you'll treat vulnerable debtors fairly (this is a legal requirement, but councils often score it). Mention any experience with Council Tax or benefits debt specifically, as these are sensitive areas.
Award Details
Liberata UK Limited
£850,000
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Key Dates
Published
8 June 2026
Submission deadline
31 March 2026
Renewal expected80% confident
November 2027
Predicted using explicit duration found in the tender description (18 months from contract start date → renewal expected by Nov 2027).
Notice type
Contract
Source
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