[News] Fairer debt collection, better council tax support and Covid-19 led future

Fairer and more effective debt collection

This month Policy in Practice responded to the Cabinet Office’s consultation on fairness in government debt management. The government was seeking evidence on how debt management can be improved.

Policy in Practice believes that any future debt-management legislation should be based on clear principles underpinned by evidence. These principles include:

A tailored, holistic approach to debt collection achieves better outcomes than a narrow, one-size-fits-all approach
An effective joined-up approach involves sharing data
Affordability assessments, using a commonly acceptable method such as the Standard Financial Statement, are the best starting point for effective debt recovery, facilitating realistic repayment plans
Clear and rapid signposting to support is essential to prevent problem debt getting out of control
Vulnerability and financial hardship must be identified early and support provided
Performance indicators drive behaviour and ought to reflect desired policy outcomes

In our submission we have shown that the government can use technology and public sector data to drive far more effective collection practices. Information on individuals and their debts needs to be combined, and a single repayment plan drawn up. The Re-Imagine Debt project and our most recent work for the Greater London Authority on flexible collection practices prove, through detailed analysis, that more flexible approaches are cost-effective.

We also prove that the supportive recovery of debt can be as effective at collecting as heavy-handed approaches, with a greater impact on knock-on outcomes. In today’s economic climate falling into debt is perilously easy, getting out needs to be made much easier too.

Case study: Re-Imagine Debt case study with Newcastle City Council and Barking and Dagenham Council

Free webinar: How to find the right debt solution for everyone on Wed 11 November

How viable is your council tax support scheme?

As COVID-19 continues to hit the financial resilience of many families councils are looking ahead to what this means for collection rates, and whether their council tax support schemes can cope with increased demand. Zoe Charlesworth and Paul Howarth were joined on a recent Policy in Practice webinar by Sally Sanders, Head of Financial Assessment at Enfield Council, to explore this issue.

Our analysis of data from councils we work with shows that caseloads had grown by 40% by July and that council tax arrears have increased by 53% as a result of Covid-19.

The outlook for employment and frontline services

COVID-19 has created residents who are newly financially vulnerable and who will be looking to frontline organisations for help in the near future.

People have been hit unevenly by the effects of the pandemic. Some households have saved more during lockdown whilst others have been introduced to the benefit system for the first time. UK households are expected to incur debts worth a combined £6bn because of the coronavirus crisis.

Zoe Charlesworth wrote about the latest labour market statistics and found that the rise in the claimant count has been most dramatic in councils who had low unemployment levels before the pandemic.

Read New figures reveal jobseeker’s claimant count more than doubles due to COVID-19

Louise Murphy wrote about the data showing that young people’s access to work has been badly hit by COVID-19, and she identified three actions that DWP can take to address these.

Read Three ways DWP can improve young people’s access to work

Deven Ghelani, in an interview with Shelagh Fogerty on LBC, responded to the Chancellor’s Winter Economy Plan and explored the groups that are still missing out from any COVID-19 support.

Read New COVID-19 measures announced in the Winter Economy Plan

The OBR forecasts that 10% of furloughed workers (960,000 people) are likely to be made redundant next month, pushing unemployment up to 3.4 million people. Frontline organisations need to understand and manage the impact of COVID-19 on both their own finances and those of the households they support, and this is where data analytics can help. We are working with councils to help them identify how both new and existing claimants are being affected.

Join How to predict next year’s demand for your customer-facing services on Wed 7 October (free webinar)

Future speaking engagements and exhibitions

The conference season looks very different this year as it's shifted online. Nevertheless, we hope to see you at one of the events we're speaking or exhibiting at over the next few weeks.

The Future of the Welfare State: Universal Credit, Furlough Schemes and Other Initiatives to Support Those in Need
Public Policy Exchange. Thurs 1 October. Deven Ghelani speaking. Details here

A tale of two councils: ReImagine Debt Collection
IRRV: Virtual Annual Conference. Tues 6 October. Deven Ghelani speaking. Details here

COVID-19: Who has fallen through the gaps?
IRRV: Virtual Annual Conference. Wed 7 October. Zoe Charlesworth speaking. Details here
Visit our virtual exhibition stand. Details here

Embedding a data-driven culture
Housemark: Ten Days of Data festival. Thurs 15 October. Deven Ghelani speaking. Details here

How viable is your council tax support scheme?
CIPFA. Public Finance Live. Tues 20 October. Zoe Charlesworth speaking. Details here
Visit our virtual exhibition stand. Details here

Building financial resilience to get ahead of the curve
MALG. Virtual summit. Thurs 29 October. Sarah Lambert speaking. Details here

IRRV Scottish conference and exhibition
Tues 10 to Wed 11 November. Visit our virtual exhibition stand. Details here

If you would like our policy experts to speak at your event about the data-led analysis and findings we produce to show the impact of social policy in low-income households please get in touch.

Thank you and farewell to our leavers

It is with huge thanks and heavy hearts that we bid farewell to three colleagues this month. Peter Carter, Business and Account Manager, has now retired and plans to spend his well earned rest perfecting his golf skills in his beloved North West England. Dr Ben Fell, Head of Analysis, has moved to a related role analysing data back in academia, and Dan Whitson, Chief Technical Officer, founding supporter of Policy in Practice, has stepped back to focus on time with his family.

View the Policy in Practice full team page

How to predict the future demand for your customer-facing services now
Wed 7 October at 10:30 to 11:30

COVID-19 has created residents who are newly financially vulnerable and who will be looking to you for help in the near future. But who are these people, and what action can you take now to stop them falling into crisis? And, critically, how will your support services need to adapt?

Join this webinar to learn:

What the best and worst case scenarios look like for councils in 2021
How flexible modelling of the future can help you understand the impacts on your caseload
What the likely impact will be on employment, arrears, and homelessness, and what that means

Register here

How to find the right debt solution for everyone
Wed 11 November at 10:30 to 11:30

In today’s economic climate falling into debt is perilously easy, getting out is hard. Firms in the debt sector have adopted flexible and ethical collection practices to support families who are struggling, yet costs and the time taken to collect have increased.

Whether you’re a utility company, advice agency, local authority or housing association, you’re are on the frontline for helping people in debt.

You can boost the financial resilience of households by helping them to increase their income. In this way, you can increase collection rates and social impact, in the knowledge that you’re doing the right thing.

Join this webinar to hear:

How COVID-19 has already hit people’s incomes, and what’s in store
How to reduce existing arrears and the chance of a customer falling into arrears
How to minimise the cost of debt collection

Register here

2020: Policy review of the year, and a forward look to 2021
Wed 9 December at 10:30 to 11:30

2020 has brought fundamental changes to our lives, both personally and professionally. As our economy took second place to our health, so the welfare safety net came to the fore to support families who faced an income shock, seemingly overnight.

In this webinar we look back at the policy response to the seismic shifts in our economy and society wrought by the pandemic. We will revisit the research findings we uncovered from our analysis for clients across both local and central government. And, as the focus turns to the health of our economy, we look at what 2021 means for people facing redundancy, debt or lower incomes.

Join this webinar to hear:

How well the COVID-19 welfare changes worked, and what should happen next
How living standards changed this year, and what the future holds
The outlook for 2021 and how organisations can best support families

Our policy experts will discuss our analysis and what this means in 2021 for council tax support schemes, housing and homelessness demand, the outlook for living standards in the context of economic recovery, Universal Credit and Brexit.

Register here

All our webinars are free and start at 10.30 for 1 hour 15 mins. If you can’t make the date please register anyway to automatically receive the slides and recording. Contact hello@policyinpractice.co.uk with any questions.