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My BackgroundMy Background
20 years local govt career across a number of 20 years local govt career across a number of London CouncilsLondon Councils
Revs & Bens, Corporate Customer ServicesRevs & Bens, Corporate Customer Services Last LA role was in LB Barking & Dagenham as Last LA role was in LB Barking & Dagenham as
HoS – Track record of service transformations HoS – Track record of service transformations & improvement& improvement
Now self employed, providing consultancy & Now self employed, providing consultancy & interim management support to clientsinterim management support to clients
OverviewOverview
Definition of Charging PoliciesDefinition of Charging Policies Context for Local GovernmentContext for Local Government Factors that Influence Charging PoliciesFactors that Influence Charging Policies Service areas covered by Charging PoliciesService areas covered by Charging Policies Corporate Charging Policy? Yes or NoCorporate Charging Policy? Yes or No Context of Charging Policies in Social CareContext of Charging Policies in Social Care Areas of discretion in setting your charging policyAreas of discretion in setting your charging policy Underlying principles to be taken into accountUnderlying principles to be taken into account Impact on Collection Impact on Collection What does good practice look like?What does good practice look like? Questions & AnswersQuestions & Answers
Charging Policies – A definition Charging Policies – A definition
An organisation strategic framework or An organisation strategic framework or statement of pricing intent for the fees & statement of pricing intent for the fees & charges it intends to make in respect of the charges it intends to make in respect of the services and/or goods it provides.services and/or goods it provides.
©© Bola OdunsiBola Odunsi
Context for Local GovtContext for Local Govt
Public Sector ethosPublic Sector ethos Statutory Requirements (e.g. Schools & Fairer Statutory Requirements (e.g. Schools & Fairer
Charging)Charging) AccountabilityAccountability TransparencyTransparency Ethical ConsiderationsEthical Considerations Political ContextPolitical Context Fiduciary ResponsibilitiesFiduciary Responsibilities
Factors that influence Charging Factors that influence Charging PoliciesPolicies
Avoiding complexityAvoiding complexity AffordabilityAffordability Pressure on LA’s financial resourcesPressure on LA’s financial resources Rising DemandRising Demand Strategic Considerations & alignment with Strategic Considerations & alignment with
existing policiesexisting policies Implementation & Administration processesImplementation & Administration processes Consequences of Charging UsersConsequences of Charging Users
Examples of Services that have Examples of Services that have Charging PoliciesCharging Policies
Home Care, Day Care & Other non-residential social Home Care, Day Care & Other non-residential social services (Fairer Charging)services (Fairer Charging)
LibrariesLibraries Schools (meals, transport, trips etc)Schools (meals, transport, trips etc) Registrar ServicesRegistrar Services Land ChargesLand Charges Pest ControlPest Control Licence feesLicence fees & much more!!!!& much more!!!!
Corporate Charging Policy? Yes!Corporate Charging Policy? Yes!
Joined Up strategic thinking across the CouncilJoined Up strategic thinking across the Council Linked to outcomes – corporate impact assessment Linked to outcomes – corporate impact assessment
considerationsconsiderations Aligned to MTFS & income budgetsAligned to MTFS & income budgets Perception of equity & fairness by the publicPerception of equity & fairness by the public Corporate sharing of information, processes & Corporate sharing of information, processes &
approachesapproaches Customer Centric Approach & ease of self service – Customer Centric Approach & ease of self service –
less complexless complex
Corporate Charging Policy? No!!Corporate Charging Policy? No!!
Service independenceService independence Charging policies can be better tailored to Charging policies can be better tailored to
service usersservice users One size doesn’t fit all!!One size doesn’t fit all!! Better collection rates?Better collection rates? Ability to manage impact assessment process Ability to manage impact assessment process
and take proactive measuresand take proactive measures
Charging Policies for Social CareCharging Policies for Social Care
Residential Services - strongly influenced by Residential Services - strongly influenced by national regulations & guidance (CRAG – national regulations & guidance (CRAG – Charges for Residential Accommodation Guide)Charges for Residential Accommodation Guide)
Non residential services – national guidanceNon residential services – national guidance LAs can apply discretion through local charging LAs can apply discretion through local charging
policiespolicies
““Fairer Charging” RequirementsFairer Charging” Requirements((Non-residential care services for adults)Non-residential care services for adults)
Minimum level of disposable income Minimum level of disposable income Levels of DLA & AA can be included as income Levels of DLA & AA can be included as income
but take account of other services & support but take account of other services & support plus additional living expenses arising from their plus additional living expenses arising from their disabilitydisability
User’s property not treated as capital asset for User’s property not treated as capital asset for assessment purposesassessment purposes
Cumulative charges for complimentary services Cumulative charges for complimentary services need to meet above criterianeed to meet above criteria
Areas of Policy Discretion Areas of Policy Discretion
Disregarding capital valueDisregarding capital value Disregard some element of partner’s income, if spouse Disregard some element of partner’s income, if spouse
remains at home.remains at home. For temporary care or short term care, there is For temporary care or short term care, there is
discretion on whether to undertake a financial discretion on whether to undertake a financial assessmentassessment
Potential to seek contribution from a 3Potential to seek contribution from a 3rdrd party if cost of party if cost of residential accommodation is higher than what LA residential accommodation is higher than what LA expects to pay.expects to pay.
Whether to apply a maximum charge.Whether to apply a maximum charge.
Underlying Principles To Be Considered In Underlying Principles To Be Considered In Setting Charging PoliciesSetting Charging Policies
Alignment with Corporate or Service objectives Alignment with Corporate or Service objectives Reasonable, fair & transparent to all .Reasonable, fair & transparent to all . Charge to be assessed according to frequency, cost & ability to Charge to be assessed according to frequency, cost & ability to
paypay Service user to be left with sufficient money to meet their needs Service user to be left with sufficient money to meet their needs
(Social care cases where financial assessment done)(Social care cases where financial assessment done) Discourage perverse financial incentivesDiscourage perverse financial incentives Consistent with other charging policies within the CouncilConsistent with other charging policies within the Council Efficient & expedient Reviews & Appeals procedure – not to be Efficient & expedient Reviews & Appeals procedure – not to be
confused with the complaints processconfused with the complaints process Flexibility to cope with changes in circumstancesFlexibility to cope with changes in circumstances
Impact on CollectionImpact on Collection
Perception of fairness & equityPerception of fairness & equity Accuracy of customer information Accuracy of customer information Consider linking risk profile to service provision Consider linking risk profile to service provision
or payment termsor payment terms Payment options – Customer centricPayment options – Customer centric Recovery & EnforcementRecovery & Enforcement Links with Service area & SLA requirementsLinks with Service area & SLA requirements
What is Good Practice?What is Good Practice?
Examples?Examples? Who decides? Government or the customer?Who decides? Government or the customer? Possible indicators;Possible indicators;
Customer satisfaction & customer feedbackCustomer satisfaction & customer feedback Access to information & ease of understandingAccess to information & ease of understanding Levels of self service activityLevels of self service activity Complaints & appeals dataComplaints & appeals data Independent recognition of excellenceIndependent recognition of excellence Collection levels or write off volumes??Collection levels or write off volumes??