The number of council tax debts passed on to bailiffs by Haringey Council has increased for a third year in a row.

Figures obtained by The Association for Community Organisations for Reform Now (ACORN) show that 8,942 unpaid council tax cases in the borough were referred to bailiffs in the last financial year.

This is an increase of more than 750 cases compared to the previous year, Freedom of Information (FOI) disclosures show.

It comes despite Haringey Council implementing an ethical debt reduction policy three years ago, which promised that bailiffs would never be used to enforce council tax debts “where people are vulnerable, face mental health issues or are on low incomes”.

ACORN has described the latest figures as “outrageous”, claiming that private bailiff companies are “profiting from this misery”.

In an open letter signed by 19 other local organisations and individuals, including three independent Haringey councillors, the group urged the council to do away with its use of bailiffs.

Earlier this week, consumer finance expert Martin Lewis accused local authorities of acting like “the worst loan sharks” through their use of “grotesque” collection practices.

This paper has previously reported on the “harrowing” encounter of one man living in Harringay Ladder with a debt collector sent to his home by the council.

In its open letter, ACORN acknowledge that Haringey’s ethical debt policy was “well-intentioned”, but claimed that it has not worked, citing ever higher referrals to bailiffs.

The group urged the council to reconsider its collection practices, pointing to policies instituted by Southwark Council as a “viable alternative”.

The south London local authority has an in-house debt collection service, which ACORN praised for allowing enforcement agents to work more closely with pre-referral debt collection teams, and avoiding “profit-seeking motives”.

FOI figures show that the total amount of unpaid council tax in Haringey over the last financial year totalled more than £7.7 million.

They also reveal that fewer debts are handled by bailiffs than five years ago, when 11,471 cases were reported.

Haringey councillors Seema Chandwani and Dana Carlin said in a joint statement that they want to “support all those who are facing debt and financial hardship”.

They pointed to Haringey’s £35m a year council tax reduction scheme, which supports almost 26,000 “struggling families”, and one in five households in the borough.

The councillors added: “We only ever use bailiffs as a last resort, and very often when residents have moved out of the borough, we are unable to locate them to offer support. 

“In the small proportion of cases when they are used, we have rigorous processes to ensure residents are treated fairly, with all visits videoed so that we can investigate complaints."

They also urged anyone who was struggling to pay council tax to get in touch so they can be offered support.