New laws that will enable Government departments to share information on people and businesses that owe them money will soon be introduced.
In February, a review published by the Cabinet Office's Fraud, Error and Debt taskforce found that over £20 billion was owed to Government and that more than £7 billion was lost through unpaid debt being written off each year.
This is equivalent to over £400 per working household every year.
The Government said the new legislation will create a single legal process for all the appropriate information to be shared in each case.
"For years Government has done all too little to collect the huge amounts of debt which it's owed. That's just totally unfair to the hard-working honest people who are paying their taxes and doing the right thing," said Francis Maude, Minister for the Cabinet Office.
"Because many debtors owe money to multiple departments, I am working closely with other ministers to find ways of aggregating these debts so we recover them in a single action - that would be simpler for Government and the debtor."
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