Agenda item

Report of the Assistant Director Finance – This report provides an early opportunity for the Committee to review and feed their views into the development of the Council’s Debt Collection Policies.

Received the report of the Assistant Director of Finance on the Review of Debt Collection Management, included in the agenda pack.

Noted               

a.         Debt management took place across the Council using various approaches and a business improvement programme was being devised; aimed at creating a more consistent and efficient approach and making it easier for debtors to pay.  This would include improved systems to ensure better recordings of conversations and actions agreed between the Council and its debtors. 

b.         In response to questions from the Chair it was explained that Homes for Haringey (where rent leaseholder project arrears existed) was part of the review with a focus on early intervention to avoid long standing debt which was more difficult to recover, and assisting residents in claiming benefits which they were entitled to.

c.         In response to questions from Cllr Hearn:

·         It was recognised that there was a lack of communication across services in relation to debt and the review would seek to improve this by services using the same systems. In response to Cllr Connor’s questioning it was explained that the integration of IT systems was currently being assessed, although it was unlikely that one system could be used for the debt management processes for all department; there was a possibility of a core financial system.  A report on the systems was likely to be presented to Cabinet in March 2015.

·         The Council accepted a range of payments including from people without bank accounts, although cash payments resulted in high administration costs and were being discouraged.  The Council was trying to make payment systems easier.

·         The Policy recognised vulnerable groups who might not understand what was being asked of them and the Council was keen to offer the appropriate translation services.  The Debt Management Service’s communication literature had not been tested for Plain English acceptability but internal checks would take place in the first instance to improve how user friendly the information was.

·         The key demographic areas where debt was high could be provided outside of the meeting.

Action: Neville Murton

·         A full equalities impact assessment (EIA)  would be conducted at the end of the Debt Management Review process.  Cllr Hearne asked to see the EIA when completed.

 Action: Neville Murton

·         There were performance indicators to monitor the length of time within which different types debts were collected.

·         Debt collected was used to support the Council’s general expenditure.

·         Severe remedies such as prison were used infrequently in cases of outstanding debt. 

·         It was not unusual for charges to be put on people’s properties  to reclaim outstanding debt when people died or vacated the property.  This was likely to become more common as a result of the Care Act where people will have the option of deferring payment.

·         If it was not economically viable to  recover certain debt, such as when a person was untraceable the Council considered writing-off debt but only after much work to try and recover that debt.

·         Communication with other services required improvement although there was a process of offsetting debts particularly for businesses, which required the appropriate technology to manage.  Some debts were not able to be offset such as Council Tax.

d.         Mr Taye questioned the support processes for people and it was explained that training would be provided to front of house staff to ensure they obtained the correct basic information from residents with queries and they would be expected to refer complicated cases to specialist debt management officers who would follow a process of investigating people’s financial positions, check benefits were being accessed and arrange payment plans.  It was key to engage with people early and stop debt escalating.

e.         The Chair requested further information on the Debt Management Review at the next Overview and Scrutiny Committee meeting in January as part of the Cabinet Member for Resources and Culture Q&A session.

Action: Cabinet Member for Resources and Culture

Officers were thanked for their attendance and the report was noted.