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