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South CambridgeshireDistrict Council
The Civil Enforcement Regime;
Our Debt recovery Strategy
Alex Colyer
Executive Director
6 October 2015
South CambridgeshireDistrict Council
Our place…
South CambridgeshireDistrict Council
• 105 Villages• 150,000+ population• 66,000 homes• Healthy, wealthy, well educated residents• Consistently top of the best places to live• Major growth forecast
– 19,000 more homes– 22,000 more jobs
South CambridgeshireDistrict Council
South CambridgeshireDistrict Council
Strategic Partnerships• City Deal
– Cambridge, Cambridgeshire, GCGP LEP, University
– £1bn investment over 15 years
• Shared Services
Context
Aims:• Reduce Dependency on benefits• Encourage claimants to make better decisions- Get back into work- Reduce outgoings- Downsize housing requirements• Reduce the benefit bill
Impact:• Less well off have less to pay their bills
Welfare Reform
Universal Credit
Benefit Cap £20,000 from £25,000
Restrictions in Tax Credits
Ending of Mortgage interest support
Council Tax Support
Welfare Reform
Have a Plan:• Early Identification of customers affected
– Direct communication– Double check our records– Early support
• Engage with Debt Advice charities• Train Staff• Support Councillors
SCDC response
Government Grant to Councils forecast to go altogether by 2020:2010 £7.8m
2015 £2.3m
2020 ?
South Cambs budget £16m p.a. (non housing)
Imperative collection rates maintained
Direct Funding Cuts
• Council Tax 66,000 Households • Average Bill £1,600 p.a. gross (£1,250 net)• Total Collectable £83m (net of reliefs / discounts)
• Business Rates 3,500 accounts • Average bill £21,000• Total Collectable £71m
• Rents 5,500 Households• Average Bill £5,000 p.a. (£100 per week)• Total Collectable £27m
• Other Debtors c 11,000 p.a.
How Many Debtors?
Private Rental
• Housing Benefit and Sundry Debtors3 Staff
• Business rates/Council Tax Recovery
3 Staff
• Rents admin and collection
5 staff
Staffing Levels
Collection Rates
Council Business RentsTax Rates
2010/11 99.3% 99.6% 98.7%2011/12 99.3% 99.5% 99.0%2012/13 99.3% 99.5% 98.9%2013/14 99.3% 99.0% 98.4%2014/15 99.2% 99.3% 98.8%
Managing Customer Contact:• Brought Contact Centre on site, in-house– Recruited for behaviours– Comprehensive training programme– Empowered agents• First time resolution 60% to 85%
– Flexible (but cheap) call-handling systems
• Recruited and trained temporary Staff
SCDC approach
Get it right, first time, on time• Dedicated, well trained and motivated team• Typically 10 days to process data– Billing– New properties– Change of Circumstances– Benefit Awards
• Easy payment methods• Liability not challenged in Court
Collection SCDC approach
Robust, consistent approach to late payment:• Prompt single reminder – Can be seen as threatening– No exceptions– Used to prompt contact, even if hostile
• Good contact channels available• Identify won’t pays from can’t pays• Take the legal remedies• Debtors know what to expect
Collection SCDC approach
Support Can’t Pays closely:• Active management:– Prompt identification, swift action– Realistic payment plans– Debt Advice– Help debtors understand need to prioritise– Single view of the debtor
• Targeted use of Discretionary Housing support• Consequences set out clearly, consistently
Collection SCDC approach
South CambridgeshireDistrict Council
Civil Enforcement• Legislation dictates process / tools available
to us• Pros and cons of each remedy for CTAX• Limitations of other options; bailiffs have to
be used
South CambridgeshireDistrict Council
Civil Enforcement• Moral pressure from charities ( “stop the
knock” “ the wolf at the door” )• Both anti-bailiff campaigns do not reflect
the overhaul of the enforcement industry through Taking Control of Goods regulations
South CambridgeshireDistrict Council
Use of Bailiffs Council Tax NDR
•2014 1,028 70•2013 1,427 117•2012 1,176 109•2011 1,400 142•2010 1,797 170
South CambridgeshireDistrict Council
Civil Enforcement• Swift, firm action preventing large debts from
accruing• Process driven timetable of events that we stick to.• Residents understand consequences of non-payment
and helped to make the best choices• Corporate debt approach / look at all debts owed
to council when negotiating repayment
Proud to be top of the league:• Accept that we should be there though– Demographics– GVA
• To get there and stay there we have to:– Get it right– Be timely– Be consistent– Be supportive
Conclusion