Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
INSIGHT
INSIDE: Enforcement special • News & events • LGO update • Collection focus • Viewpoint
JUNE 2011 £5.50 www.irrv.net
ISSN
136
1-13
05
Recognition from the topRevenues Team award winners Knowsley’s motivation
The monthly journal of the Institute of Revenues, Rating & Valuation
IRRV INSIGHT
Managing Editor
John Roberts
Editorial Director
Lester Dinnie
Art Director
Don Tregartha
Designers
Clare Barker
Roddy Clenaghan
Publisher
Tregartha Dinnie Ltd
IRRV
Chief Executive David Magor, OBE IRRV (Hons) Northumberland House 5th Floor 303-306 High Holborn, London WC1V 7JZ T 020 7831 3505 E [email protected] W www.irrv.net
Enquiries Membership 020 7691 8996 Conferences 020 7691 8987 Subscriptions 020 7691 8996
Advertising T 020 7691 8996 E [email protected]
Editorial John Roberts IRRV (Hons) T 07952 659 258 E [email protected]
Tregartha Dinnie Ltd Ibex House, 5 Keller Close, Kiln Farm, Milton Keynes MK11 3LL T 01908 306500 W www.tregartha-dinnie.co.uk
IRRV Insight is produced by Tregartha Dinnie Ltd on behalf of the IRRV.
Unless otherwise indicated, copyright in this publication belongs to the IRRV.
June 2011 ISSN 1361-1305
© IRRV 2011. Reproduction in whole or in part of any article is prohibited without prior written consent. The views expressed in this magazine do not necessarily represent the views of the Institute. Whilst all due care is taken regarding the accuracy of information, no responsibility can be accepted for errors. Any advice given does not constitute a legal opinion.
IRRV Council: IRRV President Kerry Macdermott IRRV (Hons); Senior Vice-President Roger Messenger BSc (Est Man) FRICS IRRV (Hons) MCIArb REV; Junior Vice-President David Chapman IRRV (Hons); Honorary Treasurer Allan Traynor FCCA IRRV (Hons); Phil Adlard Tech IRRV MlnstLM MCMI; Alan Bronte FRICS IRRV (Hons); Robert Brown BSc
FRICS IRRV (Hons); Tracy Crowe CPFA IRRV (Hons); Carol Cutler IRRV (Hons); Tom Dixon RD BSc (Est Man) FRICS IRRV (Hons); Ian Ferguson IRRV (Hons); Geoff Fisher FRICS (Dip Rating) IRRV (Hons) REV; Richard Guy FRICS (Dip Rating) IRRV (Hons) MCIArb; Richard Harbord MPhil CPFA FCCA IRRV (Hons) FIDP FBIM FRSA; Mary Hardman IRRV (Hons) FRICS MCMI; Gordon Heath BSc IRRV (Hons); Julie Holden IRRV (Hons) MCMI CMg; Caroline Hopkins IRRV (Hons); Maureen Neave Tech IRRV; Tony Masella MRICS MCIOB IRRV (Hons) AFA F.Inst.AM; Graham Ryall FRICS IRRV (Hons); Peter Scrafton IRRV (Hons) FCIArb MRSA (Hons); Kevin Stewart IRRV (Hons) MAAT MCMI; Angela Storey Tech IRRV MCMI; Bob Trahern IRRV (Hons);
Chief Executive’s notes 05A ‘mutual’ understanding is necessary, says David Magor, as he offers cautious Institute support for yet another new coalition initiative
News and events 06
Running the Institute 09
Education & membership 10
Back office technology 28Insight investigates Harrow Council’s and Gandlake’s online success story, and finds out how the council has achieved significant channel shift and hugely reduced costs by embracing online transactions
LGA focus 30
LGO update 31
Technology 36Universal Credit sounds so attractive on the face of it, suggests Mel Poluck, but the professionals see some significant pitfalls
Doherty’s despatch 38
Viewpoint 40
Mysteries at Midsomer DC 42A Controversial Solution. The conclusion to Kate Miller’s regular column
Cover story 17Recognition from the topRevenues Team award winners Knowsley’s motivation includes recognition from the top – the Prime MInister and the IRRV – says Tracy Hargreaves
enforCement speCial
The future’s bright... 21
Recruit the ‘right bailiff’ 23
To me, to you, together? 24
Automating your recovery 25
Someone’s knockin’ at my door... 26
ColleCtion foCus
A fair share 32
Home alone? 33
How well is your council faring at collecting debt? 34
Regular items Features
2
insi
GH
t w
ww
.irrv
.net
Editor’s welcome
What’s in the next issue ... – The RNIB on council tax disability reductions – Michael McBrien of TEGoVA reviews
EU real estate policy– The importance of property inspection
Faculty board update 12The agenda for Roger Messenger’s Valuation Faculty Board is as lively as ever, with empty rate avoidance and research projects high on the list
Case Law update 13Deborah Davies’ radar homes in on the very latest cases, this time focusing on the council tax student status
Student corner 14Bill Lovell urges potential students to take the plunge
Benefits bulletin 15Insight’s new columnist Maureen Neave hits the ground running with a spirited attack on plans for the Universal Credit
Valuation corner 16Richard Taylor explains why the European training fund is so important for the world of valuation
Faculty review
The focus of this month’s magazine is designed to fit the theme of the conference, and you will find it packed with comment and all the latest news from the enforcement industry, as several of the IRRV’s key partners demonstrate their knowledge and expertise through keynote commentary and case study material.
We are also pleased to include a four page ‘collection focus’ section, highlighting the work of some of the major players in the revenues and benefits profession, illustrating how they can offer assistance in these challenging times.
No edition of Insight would be complete, of course, without attention to the benefits and valuation streams of our Institute, and the June issue is no exception. Roger Messenger and Richard Taylor provide input for the valuer, and in addition to John Frost’s ‘Viewpoint’ critique of the current welfare reform IT proposals, we welcome Benefit magazine regular contributor Maureen Neave to the ‘Benefits Bulletin’ column, as she takes over from Julie Holden.
Finally, as the closing date for entries for the 2011 IRRV Performance Awards passes, 2010 Revenues Team of the Year winners Knowsley MBC are on hand to offer some handy tips to shortlisted organisations, as this year’s gala event at the Annual Conference in Telford approaches.
Read on!
John Roberts IRRV (Hons) is Managing Editor
of IRRV magazines
“Once again, we are able to bring you a ‘bigger and even better’ edition of Insight on the eve of what will undoubtedly prove to be yet another successful Collection and Enforcement Conference, returning this year to the popular Majestic Hotel, Harrogate.”
insi
GH
t JU
NE
201
1
3
“You can take it from us, my dear...
Equita’s got all the angles covered”
Experienced Resourced Innovative National
To find out more contact:Rob Andrews, Business Development Director, M: 07920 877725, E: [email protected] or Steve Brown, Business Development Director (London), M: 07920 274141, E: [email protected]
Equita, 42/44 Henry Street, Northampton NN1 4BZ
As the market and the economic climate changes and evolves, so must we. Equita has an established reputation at the forefront of the enforcement industry and continues to lead the way, innovate and adapt to changing times. Equita is the oldest and most experienced company in the enforcement & debt recovery market, and the only one with a truly national infrastructure. Also, with an annual turnover in excess of £21 million, Equita is unique in being able to offer its clients firm financial security and peace of mind.
Equita Final Ads 2010_set 2.indd 2 24/1/11 09:16:41
Francis Maude, Minister for the Cabinet Office, recently announced the launch of the first wave of pathfinder ‘Mutuals’, to be run by entrepreneurial public sector staff who want to take control of the services they run.The creation of a Mutual adds a new dimension to service
delivery in the public sector, but is it a suitable and viable
solution for public service delivery in local taxation, revenues,
benefits and valuation? The critical tests are whether the
proposal meets statutory requirements, are virtually risk
free and will meet the objective of the client local authority,
particularly in relation to service performance and cost.
Mutuals are part of the coalition government’s commitment
to support the innovation and entrepreneurialism of front line
staff. The Cabinet Office has created twelve public service spin-offs, which will be pathfinders for the Mutuals initiative.
It is important that the twelve projects deal with all the issues
that are likely to arise, particularly in relation to the ‘certainty’
of the link with the client authority.
The aim of the establishment of the pathfinders is to learn
from the front line. It is hoped that information that will
emerge will highlight what type of support and structures will
best enable the development of employee-led Mutuals, and to
ensure they are sustainable bodies with a long term future.
Francis Maude said, “I know that across the country there
are literally thousands of front line employees who can see
“A ‘Mutual’ understanding is necessary” says David Magor, as he offers cautious Institute support for yet another new coalition initiative
how things can be done better, but at the moment, with the
existing constraints, they just can’t get it done. Now this is
going to change. The potential for public sector staff to spin
out is enormously exciting. The new models will show us how
we best support mutuals, tackling problems when they first
arise, not expensively managing them over many years.
This is a Big Society approach, decentralising power so
people can deal with the issues that concern them. We must
not be afraid to do things differently if we are to provide
better services for less money.”
The Institute shares the Minister’s enthusiasm for the potential
of Mutuals, but there must be a more dynamic approach to
the creation of a network to enable those interested to move
quickly before it is too late and all the opportunities are lost.
We will be working with partners and stakeholders to create
an environment that will encourage the innovators in local
government to embrace this exciting development.
Chief Executive’s notes
INSIGHT
JUN
E 2
011
5David Magor OBE IRRV (Hons) is Chief Executive
of the IRRV
“The Cabinet Office has created twelve public service spin-offs, which will be pathfinders for the mutuals initiative.”
6
INSIGHT
ww
w.ir
rv.n
et
News and events
Freud responds… but the IRRV must fight onFollowing the Institute President’s letter to Lord Freud, Minister for Welfare Reform, which included 105 key unanswered questions relating to the operation of the proposed new Universal Credit, the Minister has responded. Whilst the response undertakes to give consideration to the IRRV’s stance, the government view on the inclusion of housing costs within the new benefit is clear. Lord Freud states, “I should say that support for housing costs is an important element of UC. This will bring together different forms of income-related support, and this offers the greatest scope to improve the incentives to work. The key mechanism for making work pay will be the single taper, and this will operate best by bringing together all in-work support including housing costs.” The Institute will be following this response up immediately, as well as sending further questions. As the answers are provided, they will be posted on the IRRV website in a specific area that will be open to all – Lord Freud’s letter and the Institute’s original letter and questions are also available to view on the website.
LATEST NEWS
Lancashire and Cheshire AssociationThe Lancashire and Cheshire Association is running a two day seminar on 30th June/1st July at the Lancaster House Hotel.The Association has arranged several keynote speakers, including IRRV Chief Executive David Magor, who will be discussing topical issues in this ‘Brave New World’. Details of the event and agenda are on the Association’s website. For further information and to book your places, contact [email protected].
The Annual General Meeting of the Lancashire and Cheshire Association was held on the 15th April 2011 at Knowsley Council’s offices in Huyton. IRRV President Kerry Macdermott met Pauline Wass (pictured to the right), the new Lancashire and Cheshire Association President. Pictured left are Paul Kelly and Michael Fisher, Association Junior and Senior Vice Presidents.
London and Home Counties Association At the risk of causing upset amongst the football fraternity, the editorial team has decided to print a couple of photos from the recent London and Home Counties visit to the Emirates Stadium, home of Arsenal FC! The Association were fortunate to secure the venue for their AGM, and the photos show the willing participants awaiting Mr. Wenger’s team talk, and Institute President Kerry Macdermott savouring another great event for his scrapbook.
Little comfort for local government from May elections The current cuts agenda is unlikely to see a change of course in spite of some significant changes in the recent local government elections. With budgets set and savings vital, it looks like being a difficult time for newly-elected local councillors.The Lib Dems lost swathes of seats in former council strongholds in the north of England to Labour, while haemorrhaging support to the Scottish National Party north of the border. In Scotland, the SNP snatched seats from Labour, increasing its share of the vote by more than 13% and putting Alex Salmond on course for an overall majority in his second term as First Minister.
Declaring himself “delighted” with the results, Mr Salmond confirmed he will press ahead with a referendum on independence in the coming four-year term at Holyrood, saying, “Just as the people have bestowed trust on us, we must trust the people as well”.
Labour gained overall control of eight councils, including Sheffield, Hull, Bolton, Stoke and Telford. Some 12 Lib Dem wards fell to Labour in Liverpool, 10 each in Manchester and Hull and nine in Sheffield – Mr Clegg’s hometown. Labour’s best results came in the Welsh Assembly, where it took Llanelli from Plaid Cymru and Blaenau Gwent from an Independent.
Sky-diving benefit fraudster hits the ground!
A mother-of-three who pocketed more than £6,000 benefit cash while claiming she was too ill to walk was caught on camera skydiving at 12,000ft, a South Wales court has heard. Claire Jones, 38, of Tonypandy, had claimed poor health left her unable to cook or even chop vegetables herself. In reality, she used a gym and went dancing with her partner and earned cash working in cafes, Pontypridd Magistrates’ Court heard.
An undercover investigation was launched by the Department for Work and Pensions (DWP) after an anonymous tip-off. Jones admitted two charges of failing to notify the authorities of a change in circumstances. The charges covered a period from April 2008 to August 2010. Over that time she was given disability living allowance at the highest level and also received incapacity benefit for a bad back.
She dishonestly claimed £6,016. Her case was adjourned to the same court until
June 3 for pre-sentence reports. She was released on unconditional bail. DWP minister for welfare reform Lord Freud said, “It’s cases like these that show us why welfare reform is needed. We have a duty to the taxpayer and our customers to make sure that these vital benefits only go to those who need them. Benefit fraud takes money away from the most vulnerable. It is a crime and we are committed to stopping it by catching criminals at the front line and making sure our reforms make the benefit system less open to abuse.”
The IRRV in Wales......is keen to remind readers that it’s not too late to book your place at the 2011 Wales Conference, to be held at the Hotel Metropole, Llandrindod Wells. Joining IRRV President Kerry Macdermott and Chief Executive David Magor at the event will be the DWP’s Paul Howarth, Steve Thomas of the Welsh LGA, regular Insight contributor Ibrahim Hasan, the VOA’s Paul Sanderson and East Kent Services’ Andrew Stevens. Contact Islwyn Lewis Jones on 01492 530365 or [email protected] for more details.
INSIGHT
JUN
E 2
011
7
News and events
Gary L Watson IRRV (Hons) is Institute
Deputy Chief Executive
1 It was as early as 1884 that the Institute felt a need for a Benevolent Fund to help distressed members, and one was duly established at a meeting held on the 15th April 1885. In 1889, the title was changed to the Benevolent and Defence Fund so assistance could be given to a Mr Westbrook, a St. Pancras collector who was engaged in litigation with his employing vestry over an amount of the superannuation allowance granted to him. However, when some members refused to subscribe to a dual fund, it reverted back to being known as the Benevolent Fund in 1893.
2 In the four years between these dates, £49.3s.6d was raised to help
Mr Westbrook meet his legal costs of £100. At the same time, it is recorded help towards the defence costs of a member who was accused of absconding with rate monies was refused. On the purely benevolent side, the following two donations are recorded as having been made at this time:• £15.15s was collected and sent to Bath to help
with convalescence• £80 was given to the widow of a former chairman of the
Council to help pay off a mortgage. 3 In 1901, the Benevolent Fund was reformed with benefits confined
to subscribers and their families. An annual subscription of five shillings was payable in addition to the annual membership. By 1924, there were 173 members, although with only a total of £75 income a year (and money in hand rarely exceeding £100), grants to distressed members in the first 50 years rarely exceeded £10 – Mr Westbrook excluded!
4 Since the early 1920s, all income has come from the voluntary
donations made by members and fundraising by the Associations. However, in March 1965, at the time of the reorganisation of the London Boroughs, the Association of Metropolitan Senior Rating Officers was disbanded and the funds of the Association were donated to the Benevolent Fund. Good on the Association, I say!
5 For many years, the fund’s activities were limited to helping the dependants of former members, although in 1979, the Council felt the activities should be extended to include help to members and/or former members. This change was approved at the Annual General Meeting that year, and this remains the position today.
Getting to know your Institute
The eleventh in Gary Watson’s series takes him to a crucial part of the IRRV’s work, with the first of a two part column on the Institute’s Benevolent Fund
IRRV Annual Conference & Exhibition 2011
Telford InternationalCentre 21-23 September
Go to www.irrv.net
8
INSIGHT
ww
w.ir
rv.n
et
Performance Awards)
Miscellaneous Conference programme 2011•
Forum (and Benefit Advisory) Services•
update on activities in Scotland and •
Northern Ireland
Communications Working Group (magazines, •
website and publications).
Committee considered the latest position on
sales and marketing (including advertising) for
2011, and what additional action needed to be
taken to generate income. They reflected on
the Benefits Conference that had taken place
in February 2011, where delegate numbers
had held up really well, and feedback from
delegates and exhibitors had been extremely
positive. The remaining conferences to be held
in 2011 were also reviewed. For the Annual
Conference, a draft programme was approved,
and it was agreed there would be free access
to the exhibition on the Wednesday. There
was also a discussion on the Forum Service
where membership was holding up better
than expected. Members would be consulted
during the year on how they would like to see
the service develop.
Education & Membership CommitteeThe meeting was chaired by Kevin Stewart
– key reports considered by committee
included:
enforcement qualification•
report of the Qualifications Management •
Board (QMD)
courses •
Continuing Professional Development (CPD)•
valuation issues•
membership.•
Committee continued to focus their attention
on the development of the Institute’s
qualifications, particularly in the areas
of enforcement and valuation. With the
Institute being fundamentally a membership
organisation, representing members in both
public and private sectors, the Committee
were mindful of the need to have qualifications
that were ‘fit for purpose’. The latest position
on members studying for the Honours and
Diploma qualifications was discussed, whilst a
number of initiatives to attract new members
were considered. It was noted that numbers
had not fallen off on the pre-examination
course, and that the courses due to start in the
autumn would soon be marketed.
Law & Research CommitteeThe meeting was chaired by Dave Chapman
– key reports considered by committee
included:
reports (and constitution) of the three •
Faculty Boards
meetings with government bodies•
responses to consultation documents•
Universal Credit – the IRRV questions•
committal fees questionnaire•
research matters.•
Committee again devoted much of their
time to the introduction of the Universal
Credit and the impact this would have on
the membership. The Institute has formally
responded to the Minister and had reaffirmed
its commitment to work with government on
changes to the benefits system. Members
would be kept up to date on developments
both in the magazines and on the IRRV
website. Officers reported on their meetings
with the CLG, DWP and MoJ, which have
become more frequent in recent months as
the coalition government looks to take forward
its policies.
Although a number of reports are deemed
to be ‘commercially sensitive’ (particularly
those considered by Commercial Services
Committee, where a number of papers
are only circulated to those that sit on this
Committee), National Council remains keen
for the membership to be made aware of
matters discussed at the quarterly cycle
of meetings. Should a member require
further information on any of the reports
considered by National Council at this
cycle of meetings, they should contact
Gary Watson (Deputy Chief Executive)
Keele University was the venue for the second cycle of council meetings in 2011. A summary of what was discussed is detailed below:
CouncilThe meeting was chaired by the President,
Kerry Macdermott – key reports considered
by Council included:
reports of Standing Committees•
arrangements for the Annual General •
Meeting 2011
Chief Executive’s report•
President’s report.•
Policy and Resources Committee The meeting was chaired by Roger
Messenger – key reports considered by
committee included:
• finalaccounts2010
• managementaccountsto31stJanuary2011
• finalreportonIRRVSolutionsLtd.
• administration.
Committee were advised that the Institute
anticipated declaring a small surplus for
2010, although there were still some items
of income and expenditure that needed to
be allocated. The challenges would be even
greater in 2011, although the budget had
been set to take account of these challenges.
Management accounts would be provided to
Committee between each cycle of meetings.
An update was given on the sale of the
offices in Doughty Street and the move to the
new offices in High Holborn. This had been
achieved without any external assistance and
within budget. Courses had already been
transferred across to the Institute’s new
training facility, and the intention was for
future meetings of Council to be held at IRRV
HQ, thereby bringing considerable savings to
the Institute.
Commercial Services CommitteeThe meeting was chaired by Carol Cutler – key
reports considered by committee included:
sales and sponsorship (including advertising)•
Annual Conference (including Annual •
“Delegate numbers had held up really well, and feedback from delegates and exhibitors had been extremely positive.”
Gary Watson brings readers all the latest news from the Institute’s Council, following the April round of meetings
Gary L Watson IRRV (Hons) is
Institute Deputy Chief Executive
INSIGHT
JUN
E 2
011
9
Running the Institute
10
INSIGHT
ww
w.ir
rv.n
et
Education & membership
Students will have to answer a total of
67 questions, each carrying three marks,
with a total score of 201 available. The pass
mark is currently set at 60%, and a minimum
of 50% must be scored in each of the
candidate’s five preferred modules answered
in the examination.
47 questions will be asked from the
compulsory modules of:
generic •
conflict safety and security, and•
rent. •
A further 20 questions (10 in each) will be
asked from two optional modules in relation
to distress of local taxation, road traffic, HMCS,
HMRC, and the Child Support Agency.
The new examination process will be
fully operational during 2011, and should you
need further clarification, please contact
Steve Everson (Director General) or visit
the CIVEA website.
Enforcement in training
The new syllabus and training tool are
being finalised as we go to press and the
fruition of several years’ hard work will
soon be adopted by the new enforcement
representative body, The Civil Enforcement Association (CIVEA).
The training tool, based on the previous
organisation’s (ESA) material, has been
co-ordinated by the IRRV. It will enable
candidates to learn on-line and self test
themselves on potential examination
questions. Feedback will be instant, and all
questions will have multiple choice style
options. This format is preferred in order
to assist candidates to work through and
understand the appropriate answers. Once a
candidate is ready to sit the examination, they
will make arrangements to do so at a CIVEA
member’s office. In the future, it is anticipated
that the examination will also be on-line, a
move designed to encourage more people to
take the qualification.
The format of the examination is designed
to more realistically test the candidate’s all
round knowledge of the job, rather than just
concentrating on the two areas of distress
for rent and local taxation. Although this
revised examination may be superseded in
the future, it is CIVEA’s desire that those who
pass this examination will get full or partial
exemption from any new licensing
examination requirements.
This month, it’s the turn of the enforcement profession, and Dave Cornes provides details of a new IRRV co-ordinated training tool
Dave Cornes is a member of the
ESA Examinations Sub-Committee
IRRV Annual Conference & Exhibition 2011
Telford International Centre 21-23 September
Go to www.irrv.net
This column was compiled by Lindsay Frankland,
the IRRV’s NSVQ Manager. Contact him on
INSIGHT
JUN
E 2
011
11
In praise of the IRRV’s External Quality Advisor frameworkJayne: My name is Jayne Hanson, a benefits trainer for
Exeter City Council.
Mike: And I’m Mike Cahill, the managing director of the Welfare Advice Service CIC.
Both: We are embarking on External Quality Advisor roles with the IRRV (formerly the External Verifier role).
Jayne: I am actively involved in running ‘Devon NVQ’, an NVQ assessment centre established in 2009 for the IRRV NVQ Level 3 in Local Taxation or Housing and Council Tax Benefits. I am a qualified assessor and internal verifier – supporting our assessors and candidates.
Mike: I am the centre manager for the Welfare Education Service NVQ assessment centre (formerly Kent Benefits Partnership). We provide the IRRV NVQ qualifications as well as others under OCR. I too am a qualified assessor and internal verifier.
Both: We believe that education and development are essential requirements for people to recognise and take advantage of their potential.
Jayne: My own experience is that I have achieved a sense of worth in achievement, recognition of skills and motivation to work at a higher level. I want to help individuals attain their goals, however large or small.
Mike: I feel that I have achieved much and my continuing education has helped me develop to take on a wide variety of roles in my career so far. I feel a real sense of achievement in helping others to grow in understanding and ability.
Both: By becoming External Quality Advisors, we will visit other NVQ assessment centres to advise and support them in maintaining the high standards of assessment required by the IRRV.
Jayne: I have watched qualified EVs at our own centre and during NVQ forums. Their knowledge and vast experience, as well as their support and help have inspired me to take on this role myself. I hope to achieve my EQA qualification by the end of 2011 and build my experience and knowledge to become a valuable team member.
Mike: I too have watched EVs and found them to be helpful and supportive. Being involved in the writing of the new IRRV Level 3 Diploma standards helped me to see that I could take on this role myself, and I hope that I’ll be as supportive as the current team.
Both: We look forward to this new development in our careers, at an exciting team for qualifications.
Student members NAmE EmployEr
Mark Ellison Durham County Council
Mandy Firby Durham County Council
Laura Pelmear Mouchel Group
Deborah Bartholomew Sedgemoor District Council
Nicola Street Maidstone Borough Council
Natalie Pinnock Colliers International UK
N/SVQ members Amy Backer Kings Lynn and West Norfolk Borough Council
Claire Gordon Denbighshire County Council
David O’Brien Denbighshire County Council
Karen Roberts Denbighshire County Council
Robyn Turp Denbighshire County Council
Denise Burrows Kirklees Metropolitan Borough Council
Julie Dawson Kirklees Metropolitan Borough Council
Russell Dyson Kirklees Metropolitan Borough Council
Sarah Dyson Kirklees Metropolitan Borough Council
Rebecca Goldsmith Kirklees Metropolitan Borough Council
Cherie Hinchliffe Kirklees Metropolitan Borough Council
Michelle Taylor Kirklees Metropolitan Borough Council
Anneyce Wheatcroft Kirklees Metropolitan Borough Council
New members
NAmE EmployEr QUAlIFICATIoN
Jennifer Clarke Mansfied District Council Housing and council tax benefit
Kelda Gaches Exeter County Council Housing and council tax benefit
Margaret Roberts Swansea County Council Local taxation
Maria Richards Swansea County Council Housing and council tax benefit
Latest N/SVQ successes
Get free on-line
debt recovery advice from the experts
today*
*The on-line forum for Local Authority Officers involved in debt recovery.
Local Authority Debt Enforcement & Recovery
lader.org.uk
Faculty Board update
12
The agenda for roger Messenger’s Valuation Faculty Board is as lively as ever, with empty rate avoidance and research projects high on the list
INSIGHT
ww
w.ir
rv.n
et
Roger Messenger BSc (Est Man) FRICS
IRRV (Hons) MCIArb REV is Chairman of
the Valuation Faculty Board, and Senior
Vice-President of the Institute
Vibrant interim uses led by local communities
will benefit existing shops, as well as the wider
town centre, through increased footfall –
bringing life back to the high street and making
better use of resources overall.
As a policy, ‘meanwhile’ was a key aspect
of the government’s ‘Looking after our town centres’ document, launched in
April 2009, including the empty shops
revival plan to prevent high street decline.
The meanwhile project has been providing
practical and financial support for a wide range
of meanwhile approaches in towns throughout
the country, as well as technical advice,
manuals and common tools to help anyone
who wants to do something positive in the
meanwhile. One could say that the meanwhile
process does seek to avoid empty rate –
but through the longer gameplay of actually
increasing occupations of otherwise
empty properties.
The Board has recently examined various
research themes options. Two options found
favour with the Board and were put forward
to, and duly accepted by, the Institute’s Law
and Research Committee. One is to examine
the ‘greening’ of business rates, which is
certainly a topical issue. The Board proposes
an examination of the development of green
taxes and credits, and the impact of their
interaction with established local taxes – to
explore the rewards and penalties inherent in
such a system, and the positioning of ‘green
rating’ within any wider green taxation policy.
The other research theme is to initiate a
review of plant and machinery rating –
a large project, but one that I contend
is long overdue.
In the meanwhile...before the hearing – but that will fall after
the target date, which therefore precludes
discussion! There are obvious tensions here.
The VOA has issued updated information to
all offices regarding disclosure of evidence in
defence of the 2010 List, and regarding target
dates. Whilst valuers in practice may not like
aspects of the approach taken by VOA, at least
we can hope for consistency of approach.
The Board will monitor feedback from
members on this issue.
The Board has wondered recently if it has
come across an example of two policies
from one government department working
to antagonist effect. The Communities
Department has issued ‘Meanwhile use sublease and guidance notes’, for lettings
by an intermediary, e.g. a local authority
or voluntary body. It offers advice about
how to arrange short-term leases for empty
commercial buildings. Some might say that
this means it is now government policy to
encourage empty rate avoidance – I could not
possibly comment! What I do know is that as a
philosophy, ‘meanwhile’ is based on
the belief that empty properties
spoil town centres, destroy economic
and social value, and waste resources
that we cannot afford to leave idle.
Business rates are under the spotlight
at present. The Valuation Faculty Board
considered at its last meeting the current
Local Government Resource Review, in
which the government is exploring how the
distribution of business rates and formula
grant can be improved upon to provide a
more effective income stream for councils.
The Institute is contributing to that,
understandably confidential, review process.
The government is committed to delivering
the first stage of its report, within a tight
timetable, in July.
There are several nuts to crack the review
process. Promoting growth is important to
the coalition government; and business rates
retention is regarded as a mechanism to
achieve that. The government message makes
it clear that they have the will to bring about
change, and their main two drivers that will
shape this review are to incentivise growth
for local authorities, and to free them from
central control. Various options for retaining
rates locally will be examined in detail before
a wider consultation document is released,
in which the ‘front runner’ options will
be revealed.
The Board has taken forward members’
concerns in liaison meetings about the way
initial discussions on 2010 appeals have been
conducted. Some members are of the view
that the Valuation Office Agency (VOA)
has significantly changed their policy on initial
discussions. They highlight that the VOA in
their start date/target date letters say the
onus is on the appellant to come up with a
case/rents – and the VO will not supply a rent
schedule or a list of other appellants until it
is done. The VO will obviously have to supply
regulation 17 information at least six weeks
“Vibrant interim uses led by local communities will benefit existing shops, as well as the wider town centre, through increased footfall – bringing life back to the high street and making better use of resources overall.”DOWN YOUR
HIGH STREET
DOWN YOUR
HIGH STREET
case law update
INSIGHT
JUN
E 2
011
13
deborah davies’s radar homes in on the very latest cases, this time focusing on the council tax student status
Deborah Davies IRRV (Hons) is
Customer and Benefit Services Manager
with Craven District Council – contact her
correspondence, and the appellant was still
working full time, so he had not claimed an
exemption for this period. For the second and
third years, he resided at the college during
the week, returning home at weekends, and
so wished to claim a student exemption.
The appellant contended that the college
met the definition of a theological college,
as it concerned itself with the study of God.
Kirklees Council disagreed, on the basis that
there were no minimum entry requirements,
and the diploma awarded was not listed on
the National Qualifications Framework for
Higher Education. Students were expected to
complete routine admin tasks and raise funds
to earn ‘mission points’, which would fund
trips abroad. The panel accepted that defining
a theological college was not straightforward,
but felt that the facts that none of the lecturers
were professors or theologians, that there
were no academic entry requirements, that
attendees had no entitlement to student loans,
and that the college was not listed with UCAS
or the Register of Sponsors, determined that
the Charis College could not be described as a
theological college for council tax purposes.
Educational allowance?
courses at the university for a minimum
24 weeks each year and 21 hours each week.
This argument was rejected. Judge Corner
said, “It seems to me in the ordinary use of
language that a person can attend a course,
or attend a university, without being physically
present at a particular place for any length
of time.
“In an academic context, it is a natural
use of the language to speak of a person
attending a course if he is subject to a degree
of supervision, in some appropriate contact
with the academic authorities, but doing the
substantial part of his work in a library,
or at home.”
He chose not to follow the decision of Mr
Garnham QC in Fayad (2008) , in which the
definition of ‘attend’ was taken more literally,
resulting in the dismissal of Mr Fayad’s appeal
that he was a student for council tax purposes.
A recent VT case concerned itself with
the definition of a ‘prescribed educational
establishment’, specifically a theological
college. The appellant was undertaking
a course at the Charis Bible College –
the first year had been largely done by
The Council Tax (Discount Disregards) Amendment Order 2011 (SI 2011/948) came into effect on 13 May 2011. One of
the changes is that the requirement for
‘attendance’ in relation to a full time course
is replaced by the requirement to ‘undertake’
a full time course. Another change is that the
former definition of ‘prescribed educational
establishment’ has been replaced with
‘educational establishment situated in
Member States’. Until now, local authorities
have been entitled to ask educational
establishments to provide a certificate, but of
course the legislation cannot be extended to
establishments outside England and Wales.
This will mean that we will have to ‘satisfy’
ourselves in other ways that a particular course
or body meets the definition of an educational
establishment for council tax purposes. For
a useful starting point (a list of over 4000
educational establishments in Europe), try
http://www.britishcouncil.org/erasmus.
Judgement in the case of Feller v Cambridge City Council (2011) was
passed just as the above changes were being
publicised, and serves to highlight the effect of
the revised definition. Tim Corner QC (sitting
as a deputy High Court judge) ruled that
PhD students at Cambridge are entitled to a
disregard for the purposes of council tax on
the basis of their student status. Cambridge
City Council’s policy was to grant exemption
from the tax to PhD students for the first four
years only, and there were very few exceptions
allowed. Mr Feller was not allowed the student
status and appealed the decision.
The High Court held that a student studying
for a PhD was on a full time course of
education for the purposes of the relevant
regulations, as, even though he did not attend
regular classes, he could still be in ‘full time’
education and qualify for exemption from
council tax. The City Council had tried to argue
that (the now) Dr Feller was liable for council
tax as he was not required to ‘attend’ formal
“until now, local authorities have been entitled to ask educational establishments to provide a certificate, but of course the legislation cannot be extended to establishments outside england and wales.”DOWN YOUR
HIGH STREET
DOWN YOUR
HIGH STREET
student corner
14
Bill Lovell urges potential students to take the plunge
INSIGHT
ww
w.ir
rv.n
et
IRRV Honorary Member Bill Lovell is a
former examiner and member of the
Institute’s Examinations and Assessment
Board. He is a freelance local government
consultant and trainer
day release and by distance learning. Of these,
distance learning can be picked up at any
time, whilst for day release, a new course will
kick off in the autumn. With a two year course
to achieve the qualification, the first new
Diplomas will be awarded next year.
Each council, shared service operation
or private contractor is constantly having to
find new individuals for management and
supervisory roles, as existing staff decide to
go on to do other things, sometimes when
least expected. At one time, employers could
assume that senior staff would stay until
retirement, but that is not true today. One
outcome is that anyone looking to move
upwards in their career needs to be ready
at any time for the opportunity that might
come out of the blue. In future, the holding
of the IRRV Diploma will be a valuable asset
for any candidate for promotion or a new job.
Even being part way towards the Diploma, by
actively studying or having passed the first
examination, can already help by showing the
commitment. Traditionally, summer is the time
when many people tend to plan the next step
in their education, or how to achieve the next
rung up the working ladder, so whilst lazing on
the beach or in the garden this year, potential
students might be dreaming of life with the
letters IRRV (Dip) after their name!
Thinking about the new IRRV Diploma? qualification that has now been dealt with by
replacing the old corporate qualification with
the Professional Diploma. With this change
still very new, if you have ever been an IRRV
student, are currently studying, or are thinking
that a qualification may be the way for you
to get ahead, this is an excellent time to be
considering the Diploma.
The IRRV’s new Professional Diploma
allows deeper involvement in the Institute,
but more important than that, it ’s what
the qualification says to work colleagues,
employers and potential employers. To be
able to put the letters ‘IRRV (Dip)’ after your
name shows that not only are you a member
of a professional institute, but that you are a
technical expert, as well as being someone
with the appropriate skills for supervision
and management. The qualification can be
taken by technician members, including
lapsed members who passed the technician
exam, but the door can also be open for
people who have never taken or passed the
technician level, subject to entry conditions
on other educational attainments and relevant
workplace experience.
The Diploma qualification is normally
taken over two years, and it consists of a
common core, together with option streams
for revenues, benefits and valuation. The
common core tests general academic ability
through researching and writing-up technical
assignments, as well as a management
examination. The option streams do what
it says on the tin, which is to allow people
to demonstrate that they are becoming
technically competent.
As with all the Institute’s qualifications,
examinations are held in June and December.
The first students sat the diploma ‘year one’
papers in December 2010. More people
are coming on board with the examinations
this month, in June 2011 – about 20 people
attended the pre-examination course at Keele
University in April. Students are studying by
There are 325 billing authorities in England,
22 in Wales and 32 levying authorities in
Scotland. All of these councils are responsible
for council tax, non-domestic rates and
benefits administration. Some authorities, still
just a few, have contracted the service out and
some are operating partnership schemes, but
the majority still do the work in-house. But,
internal or external, one essential requirement
is effective management, and here the new
IRRV Diploma is ready to play its part.
Looking at these numbers, local government
needs over 300 individuals capable of leading
a revenues department, and many more to
act in management roles. Although one or two
people may be designated as service heads
or managers, effective management needs
teamwork, and a well-run service will have
people at various levels in the organisational
structure providing the direction needed for
the staff in the department to do the job
well. At the same time, amongst the staff,
there will be people themselves aspiring to a
management role in due course.
This is where IRRV comes in. For many
years it has provided trained and qualified
professionals equipped with the knowledge
and expertise to carry out the management
roles within a revenues and benefits
operation, and to provide leadership. As
well as providing people for management
roles, IRRV has also trained huge numbers of
technicians to undertake the detailed work of
local taxation and benefits, but if there has
been a failing it has been that the Institute
has allowed too many very capable people
to stop their professional development at
the technician level. It is this defect in the
previous method of developing the IRRV
For more information on the IRRV’s qualifications and courses, contact [email protected]
Benefits BuLLetin
INSIGHT
JUN
E 2
011
15
Insight’s new columnist Maureen neave hits the ground running with a spirited attack on plans for the Universal Credit
Maureen Neave Tech IRRV is Benefits
Manager with Vale of Glamorgan Council,
and a member of the IRRV Council
or they have casual hours, if overtime is
worked, etc. Also, there is uncertainty as to
whether the technology will deliver payments
in respect of children direct to the main child
carer in the household, as it does at present.
The purpose of the Welfare Reform Bill is to simplify benefits in order to improve
incentives to work. David Cameron was
reported as saying, “we face a choice of cuts
in welfare or cuts elsewhere”. This is all well
and good, and just a smoke screen to hide the
failure of the government to provide growth and
job creation. The cost of welfare can be cut by
investing in creating proper jobs to help people
come off benefits. But the government choose
to attack and stigmatise those on benefits,
instead of providing real job opportunities. It ’s
been reported that one of the schemes put
forward is to introduce a ‘work force scheme’,
where some claimants will be required to
enter short periods of employment without
pay. Where is the stability in this, and how will
this take people off benefits?
None of us can argue that the theory behind
a combined benefit system would be better
for the customer. But with only six benefits
included in UC, there is still a question mark
over this. The theory sounds good, but what
will the reality be? The housing element is so
different from the other five benefits – will it
really be better merging some of the existing
income related benefits with the housing
component? I just worry about the poor
customer, because we all know how painful
the process is going to be, and the chaos there
will be for a number of years to come. To
reduce the risk of eviction and chaos, I think
DWP should make sure that all of the income
related benefits for living needs are set up and
working properly before they merge HB into
UC... if at all.
is pre-1982 supplementary
benefit, and it is sad to see that
UC will be administered in the
same way. It didn’t work then,
so why would it work now?
You would think DWP would
have come up with something
which would be in keeping with
the 21st century, not introduce
something that they know has
failed in the past! LA benefit
sections deal with millions of
people whose lives are diverse
and complicated – if UC does
not deliver, it will cause hardship,
and where is the fairness in that?
No-one can argue that the
existing scheme is problematic.
Means tested benefits are
complex and difficult to
administer, and it can be hard for people to
know whether they may be entitled or not,
or how much they will be entitled to. The
government maintains that because the UC
will be easier to understand and claim than
multiple benefits, there will be significant
improvements in take-up, which will help to
alleviate child poverty. I think this is wishful
thinking, and will not resolve this problem, as it
is still a means tested benefit which depends
on a complex set of rules and calculations
taking into account a real set of circumstances
(family lives can be complicated!). This is
where the scheme becomes diluted.
DWP will rely heavily on HMRC delivering
a ‘real time’ system, which does not exist
yet. HMRC have been given £100 million to
develop it, but it has been reported there will
be delays. A computer can only respond to
how quickly someone keys in the information
– people’s circumstances can change quite
quickly, especially if employment is temporary
Yes, I was disappointed but not surprised
when I heard that the Department for Work
and Pensions (DWP) is going to administer
the Universal Credit (UC). The writing was
on the wall after listening to Paul Howarth’s
paper at last year’s Benefit Conference. Even
though UC is being introduced by the coalition
government, it was evident we would have
seen a universal benefit system of some kind
whoever was in power, but I don’t think it would
have been be so radical. Combining benefits
has been on the cards since tax credits were
introduced, and I suppose we can thank HMRC
for the mess they created, as it has given us a
longer delivery period for HB/CTB.
HB was transferred to local authorities (LAs)
to administer in 1982/1983. to fit in with
housing policies, reduce private sector fraud,
help prevent homelessness, and to fit in with
housing/anti-poverty/social inclusion policies.
The current thinking of UC is that combining
IS/JSA(IB)/ESA(IR)/CTC/WTC/HB to form a
single income related payment will be simpler
and fairer. I find it disappointing that only six of
the thirty-plus benefits will be incorporated in
UC – this is very different to what we were all
originally led to believe.
UC will combine the six existing benefits
within a common framework of rules,
comprising a basic living allowance with
additional components such as the housing
element (which is different to the other five
benefits), which will reduce as income
increases, and increase if income falls. This
“You would think dWP would have come up with something which would be in keeping with the 21st century, not introduce something that they know has failed in the past!”
valuation corner
16
richard taylor explains why the European training fund is so important for the world of valuation
INSIGHT
ww
w.ir
rv.n
et
Let’s celebrate the Leonardo da Vinci programme!development want it. Breaking down barriers
between Member States, not erecting them
and using them to promote national interests,
is the way forward for the EU. Breaking down
barriers is the foundation on which Leonardo is
based. Unlike agricultural support mechanisms,
no one can use Leonardo as a negotiating
tool. It is simply a programme to encourage vocational training at a European level, building on and supporting national strategies.
No wonder the Commission views it as a
flagship programme, and is placing an ever-
increasing emphasis within the programme on
valorisation, the process whereby projects can
add value to existing knowledge and practice,
and dissemination, the process by which
relevant professionals and the public at large
can learn about cross border developments
and, crucially, participate in them.
Valuation is a profession which is steeped
in history. For as long as property has been
bought and sold, valuations have been
required. Increasing legislation over the years
has made the subject more complex, with
each country developing its own regulations.
The increasing internationalisation of the
property market, however, has placed new
demands on all those in the sector, who now
require additional sets of skills, particularly
As reported in past editions of this magazine
and its sister publication Valuer, the
transnational DEFVAS valuation standards
project, partially funded by the Leonardo da
Vinci programme of the European Union, is now
under way. Led by the IRRV, it aims to introduce
a further transnational dimension into valuation
practice through innovative use of material
which can also be used for training purposes.
The rescue packages at national level
following turbulence in the financial markets
has for the most part focused minds away
from EU issues. Unrealistic expectations
about the effectiveness of the EU as a
deliverer of financial salvation has caused
at best widespread disenchantment, and at
worst violence, in at least one Member State.
Citizens within the Eurozone, particularly
those in the private sector, at the sharp end
of a sluggish and in some cases deflationary
economy, are expressing doubts about
whether they have derived any benefit from
the EU. One wonders whether gross self
interest will ever permit more genuine cross
border activity.
In terms of EU activity, however, the
Leonardo programme is by contrast a breath
of fresh air. It is not just officials who want
it – most people involved in training and staff
The main Olympic Stadium and the Velodrome have now been completed and the Aquatic Centre has sprouted two temporary wings of extra Olympic seating. The Mittall tower climbs higher and higher, ready to dominate the East London skyline at 377 feet (115 m) – twice as tall as Nelson’s Column. The forward sale of the Olympic village proceeds, and legacy plans for the media centre include an indoor ski centre.
The IRRV London and Home Counties
Association held their second visit to theOlympic Site, and I was able to offer apresentation on the Olympic regeneration and new Stratford City shopping centre. We were honoured to welcome the Yorkshire Association President to this tour. Also in March, I led a group of Swiss and Austrian surveyors to the Olympic site/Stratford City.
Westfield has announced that Stratford City shopping centre will open on Tuesday 13 September 2011, and will include the UK’s largest Casino (Aspers), a 14 screen
cinema, three hotels, and a bowing alley, in addition to over 300 shops, 50 places to dine, and massive John Lewis, Waitrose and Marks and Spencer stores.
West Ham United FC is set to take over (with the London Borough of Newham) the main Olympic Stadium in 2013, and this photo I took of the Barcelona Olympic stadium illustrates the problem of retaining an athletics track around the perimeter of the pitch!
Olympic 2012 countdown – only a year to go!
Richard Taylor is the Institute’s
European consultant
This Olympic progress report is brought to
you by Institute Immediate Past President
Geoff Fisher FRICS (Dip Rating) IRRV (Hons)
REV, professional consultant at Strettons
chartered surveyors. Contact him on
those with an international dimension. The
Leonardo project, run and managed by IRRV
in conjunction with five international partners,
is designed to address these matters and
meet the needs of those working in valuation
in the 21st century. By making it possible
to open up the European market for the
valuation profession, the project will make a
huge contribution to the internationalisation of
the property market and the development of
valuation as a discipline in Europe.
Other articles address specific issues
relating to the Leonardo programme, but
suffice it to say at present that, thanks to
Leonardo and the IRRV contract, there will be
for the first time transnational training material
allied to agreed European valuation standards.
British valuers working in Spain and skilled
Czech staff working in London is not a new
concept, but it is now more than a distinct
possibility for the mainstream of the valuation
profession. Let’s celebrate real cooperation
in Europe and look forward to better
opportunities for people working in property
related activities.
INSIGHT
JUN
E 2
011
17
Recognition from the top
cover story
revenues team award winners Knowsley’s motivation includes recognition from the top – the Prime Minister and the irrv – says Tracy Hargreaves
Tracy Hargreaves is Principal Revenues
Manager with Knowsley Metropolitan
Borough Council – IRRV Revenues Team
of the Year 2010
18
INSIGHT
ww
w.ir
rv.n
et
collection of council tax, national non-
domestic rates, sundry debts, housing benefit
overpayments and right-to-buy mortgages,
the team collect on average £125m annually.
The team also check and reconcile all income
and outgoings through the council’s accounts,
which amounts to £1.1b.
The decision to apply for the award came
hot on the heels of the team’s successful
achievement of the Cabinet Office’s Customer Service Excellence (CSE) award
in January 2010. The application was made
jointly with the benefits team, and covered
every aspect of both services.
We’d always contented ourselves with the
rewards of excellent collection rates, high
levels of customer satisfaction, and strong staff
morale, so the CSE award was a whole new
experience for the team.
Working in such a busy service, it ’s often
difficult to stop and take stock of all the things
cover story
It ’s something of an achievement to be told by
the Prime Minister, no less, that your service
has an in-depth understanding of customers’
needs! This is what the revenues team at
Knowsley were told, giving them a taste for
success and a hunger for more recognition
from the top!
Knowsley is one of five metropolitan
districts of Merseyside which nestles
cosily between the cities of Liverpool and
Manchester. With a population of 150,800,
it might not be the largest of councils, but
over the years the reputation for being a
progressive council achieving excellent
standards has brought welcome attention
to the borough.
Knowsley has long been a breeding ground
for talent – Alan Bleasdale, Sir Rex Harrison,
Phil Redmond and Steven Gerrard are just a
few of the people from the area with a genius
talent. The revenues team felt that they had a
reputation to live up to when the decision was
made to apply for the IRRV’s Performance Awards 2010.
Knowsley’s revenues team is part of
Exchequer Services in the Directorate of
Corporate Resources. Responsible for the
we do well, and also to honestly challenge
areas of improvement. The end result of being
told that our application was the strongest the
assessor had ever seen made all of the hard
work worthwhile.
Understanding the needs of all customers
was the strength of the application, according
to the assessor... and Gordon Brown, the
Prime Minister of the time. Knowsley
demonstrated that they had a tailored service,
recognising the requirements of their largest
businesses, such as Jaguar Landrover and
QVC, right through to sole traders with market
stalls, pensioners and vulnerable adults, plus
everyone in between.
It ’s easy then to see why the team’s theme
for the application for Revenues Team of the
Year was, ‘Putting the customer at the heart of everything we do’.
Bernie Benbow, Head of Revenues explains
some examples of the ways the service
“the decision to apply for the award came hot on the heels of the team’s successful achievement of the cabinet office’s customer Service excellence (cSe) award in January 2010.”
Celebrating with Quentin Willson
INSIGHT
JUN
E 2
011
19
had been adapted to suit whilst maintaining
collection performance. “We listened to
customer feedback and acknowledged that
older people can sometimes be confused
and frightened by collection processes. As a
result, we introduced a ‘softer’ process with
differently worded reminders that gave slightly
longer to catch up on missed instalments.
“Following discussions with our business
customers, we also put in place our own
deferral scheme (before the government
announced their own) which allowed non-
domestic ratepayers to extend or change
their instalment plan, or delay payments on
condition that they could demonstrate how
this would help their cash flow in the short
term, and also pay the balance in full by the
end of the financial year.”
The team have a wide variety of ways that
they communicate with customers and gather
customer feedback. As well as the traditional
methods of customer surveys and feedback
forms, Knowsley Revenues also reach
out to the people who don’t necessarily
initiate contact.
Customer journey mapping has been an
interesting and successful way of examining
all aspects of a customer’s journey through
a process that ends up with revenues. A
particular success has been through mapping
customers who have a range of services
from the council for which they pay, helping
different service areas to spot gaps where
more joint effort could eliminate duplication
of effort, and also provide better information
to customers at the very beginning of
their journey.
A ‘Credit Crunch Roadshow’ organised as
part of Knowsley’s financial inclusion project
let some of the team loose in the various
town centres across the borough. Joining up
with DWP, utility companies, trading standards
and benefits, the team actively approached
members of the local community. As well
as providing advice and guidance, the team
gathered valuable feedback on the issues
facing local residents, which was used to make
changes to the council tax recovery process at
the first sign of late payment.
The revenues team are a well motivated
group of people with a wide range of
experience. The team counted up the number
of years they’d spent collecting and enforcing
debts and found that they had over 520 years
of experience between them! It is also worth
recognising that the sickness absence levels
on the team are extremely low (four days
per annum... not per person, this was for the
whole team!).
“Staff morale and team spirit is very
important to us”, Deb Lee, Assistant Borough
Treasurer explained. “An individual may
be highly experienced, with a wealth of
knowledge, but if they are unhappy or feel
undervalued, their performance will suffer.
We always encourage involvement in shaping
and developing the service, and our culture
is definitely one of open discussion and joint
decision-making.”
The attitude and experience of all members
of the team was another key contributor to
the team award submission. The service
managers were unsurprised, but very proud
that, when asked to speak to the panel about
their experience of working in revenues, every
member of the team was keen to take part
and have their say.
The idea behind introducing the team to
the panel was a simple one – the service
managers were keen to show that the
submission was a joint effort involving the
whole team. They were also confident that all
team members would represent themselves
well, from the most experienced and longest-
serving individual, to the newest team
member who started with the team as
an apprentice.
The knowledgeable, friendly attitude of the
service has probably been one of the reasons
why other councils and organisations have
approached Knowsley to look at their processes.
This, along with consistently high collection
rates in an area ranked highly in the Index of Multiple Deprivation has resulted in interest
from revenues teams with similar issues looking
to change the way that they work.
The revenues team at Knowsley are still
working hard to build on the success of the
Revenues Team of the Year award. Early
retirement has meant that they’ve had to
say goodbye to some of their longest
serving colleagues, and subsequently the
team have reorganised.
“We don’t treat the debts and income we
collect on an individual basis”, explained
Bernie. “A customer may owe a number of
debts to the council, such as council tax, rates
and rent. All members of the team have the
skills, experience and authority to deal with all
aspects of the service, providing a one-step
solution to customers and also ensuring there
aren’t any skills gaps when people leave.”
A new target team has been created to deal
specifically with large debts, working closely
with the team’s external bailiff companies.
Bankruptcy and insolvency cases are
monitored and special efforts instigated with
cases ‘fast-tracked’ for maximum results.
“The team has maintained their excellent
standards of collection and customer service
for many years now.” said Borough Treasurer
James Duncan. “The IRRV award is a
testimony to the hard work of the team, and
I am extremely proud of their achievements.”
Gordon Brown no longer holds the top job
at 10 Downing Street, and some would say
that it will now be more difficult to get positive
feedback from that address. You can’t accuse
Knowsley revenues team of shying away from
a challenge though, and it would come as no
surprise to see a letter from Mr Cameron in
the trophy cabinet some time soon!
Knowsley revenues team
The Awards Village
“Joining up with DWP, utility companies, trading standards and benefits, the team actively approached members of the local community.”
great & good
doesn’t mean
big & bad
DUKESB A I L I F F S L I M I T E D
DUKESB A I L I F F S L I M I T E D
E [email protected] T 0844 844 1345W www.dukeslimited.co.uk
Dukes Bailiffs get great results through good practice & high standards.
That’s why local authorities trust us to help preserve their finances & their reputation
in Council Tax, NDR & RTA Collection.
INSIGHT
JUN
E 2
011
21
the place of the smaller companies, however,
and we need to persuade local authorities that
working with the smaller bailiff company as well
as the larger enterprises has a number
of benefits.
Let’s take some of the likely effects of
the Tribunals, Courts and Enforcement Act which the MoJ continues to consult with
stakeholders about. Let me say at once that I
think the Act was a requirement. The different
types of debt and the regulations which applied
to them were very confusing to the debtor, and
also to the advice sector, sometimes even to the
clients and bailiffs themselves.
Nevertheless I do have some concerns about
new regulations that will replace the provisions
of common law, which is a free,
fast and simple remedy.”
Colin is worried about the effects of this on
the small certificated bailiffs, some of whom
have been doing a successful job for years.
Those who are unable to form an association
with one of the Sheriff’s Offices, which are vying
for this work, will lose out when they lose the
power of the warrant to distrain on commercial
premises. Unfortunately there is only a limited
number of Sheriffs, he feels.
Generally though, Colin welcomes the
Act, because it makes the language of the
enforcement business more understandable to
everyone. An example of this would be ‘taking
control of goods’, which is much clearer and less
Colin Naylor, Managing Director of Dukes
Bailiffs, has been Chairman of the Association
of Civil Enforcement Agencies (ACEA) since
December 2009. During his time in office,
he has championed the cause of his members,
in particular those smaller companies which are
most at risk from market changes.
“With the advent of the Tribunals, Courts and
Enforcement Act and the recent merger of ACEA
with the Enforcement Services Association,
there are new challenges to be faced by the
sector”, he says.
“I’m cautiously optimistic about the future,
but the collection and enforcement community
must react in an organised way to guarantee
a competitive and fair market for everyone.
In my new role as Co-Chairman of the new
organisation – CIVEA – I will always defend the
role of the smaller companies, and speak up to
remind local authorities of the value they add to
the marketplace.”
There is a fear among some bailiff
companies that market trends will marginalise
the influence of the smaller operators, and Colin
wants to be clear that every member of CIVEA
will continue to enjoy the same rights, privileges
and share of ‘voice’ whilst he is in a position to
influence matters.
“I’m enthusiastic about my role in the
relationship between ACEA and ESA, with the
opportunity to speak for a cohesive group
that represents the overwhelming majority of
the collection and enforcement community”,
he continues. “If we speak with an organised
voice, given an environment where there
will be increasing market pressure for public
sector cuts, and the challenges of an increased
regulatory framework from government
targeted for implementation in 2012, then
I think the future is bright.
Such changes must not unduly squeeze
open to misunderstanding than ‘levying distress’,
which is what it replaces. Personally, he has no
problem with the term ‘bailiff’ – which seems
to him more readily understood than ‘Civil
Enforcement Officer’.
Colin continues, “I’m sure that the principles
of a competitive marketplace will continue to
encourage local authorities to spread their
business across a number of providers. Not
only that, but businesses which have a local
dimension also possess local knowledge
and resources, which can be very helpful in
providing the highest quality of service.
It is in the nature of successful small
businesses that they are quick to respond and
very customer focussed, making them best
placed to act on special cases. I’d also contend
that in the drive for high standards of integrity
and professional ethics, the smaller businesses
have always been in the forefront
of improvement.
Change is always challenging, but our
profession has a good track record in moving
with the times. With a new organisation behind
us and the initiative that is second nature to
bailiffs, I believe we do have a bright future”
he concludes.
enforcement special
“The future’s bright...
says Dukes’ Colin Naylor, as insight interviews the new ciVea co-chairman
Colin Naylor is Managing Director of
Dukes Bailiffs and Co-Chairman of
CIVEA. Further information can be
found at www.dukeslimited.co.uk
if the future’sorganised”
“in my new role as co-chairman of the new organisation – ciVea – i will always defend the role of the smaller companies, and speak up to remind local authorities of the value they add to the marketplace.”
C
M
Y
CM
MY
CY
CMY
K
RR_INSIGHT_JUNE2011_Edition.pdf 1 27/04/2011 15:31
INSIGHT
JUN
E 2
011
23
comes at a cost, and is now becoming more of
an art than a science, but is essential to ensure
that a quality bailiffing service is provided to
meet today’s requirements.
My top tips for recruiting the best bailiffs are:
define the full role of a bailiff in a ‘job •
description’ that is easily understood
attract the right applications by way of •
advertising in the right places
manage the application and •
selection process
get the right personnel to do the interview•
during the interview, look for the right •
qualities needed by asking the right questions
give a written test, to include both Maths •
and English
give the prospective candidate the •
opportunity to go out for a day and shadow
the bailiff supervisor
review feedback from both parties involved •
with the shadowing
any doubts? Do not recruit! Getting rid of •
a bad candidate takes longer and is more
expensive than re-advertising
ensure that thorough security checks are •
carried out on all prospective bailiffs (CRB,
CCJs, debt issues, i.e. owed council tax)
before they start
provide essential training (initial and •
Local authority clients expect outstanding
collection rates and results from bailiff
companies, especially in these difficult
economic times, when council money is
being cut left, right and centre by central
government. You’d imagine therefore, that
an aggressive strategy would be required
by companies to recruit bailiffs and ensure
collection is maximised. It may surprise you
however, that totally the opposite is probably
true! Big, intimidating and aggressive bailiffs,
I believe, have no place in effective bailiffing,
where size really doesn’t matter! Sometimes
having big, intimidating and aggressive
personnel can actually work against you and
be more confrontational.
Looking for the right bailiff is not easy,
especially when you expect the softer skills
but also demand a high collection rate. Added
to this, bailiffs experience anti-social hours,
work alone, have challenging targets, and
sometimes are often on the receiving end of
aggressive or/and emotional behaviour from
debtors. Not the best of job descriptions!
So what should you look for to recruit the
‘right bailiff ’? There are a number of qualities
needed to make a good bailiff – here are a
few of them, not in any particular order:
excellent negotiating and •
communicating skills
being able to listen and show empathy •
when needed
conflict management skills/being able to •
control confrontational situations
being polite and respectful •
being calm, confident and firm •
when required
not being intimidated easily•
working in a organised and •
methodical manner.
Looking for individuals who are going to
have these attributes is not easy, hence the
drop-out rate is relatively high during the
recruitment stages. Recruiting good bailiffs
Ray Hatchard Tech IRRV is Client Services
and Operations Director with Ross and
Roberts Ltd., and a Past Chairman of the
Institute’s Wessex Association.
Contact him on 01425 482330 or
ongoing) for bailiffs to ensure knowledge of
local authority requirements and compliance
support bailiffs through regular monitoring, •
targets and appraisals.
It is surprising that these simple ‘checks
and balances’ can be easily overlooked,
resulting in poor practice from
inappropriate appointments.
Special kinds of bailiff require strong
leadership, to deliver the best results for clients,
whilst complying with all legislation, directives
and current good practice. The merging of
ACEA and ESA into one organisation, namely
CIVEA, shows how working in partnership is
the only way forward. Good partnerships create
understanding, mutual respect, tolerance and
encouragement, which are all supported by
good recruitment practices.
Targets can drive the poor behaviour
of some bailiffs that are poorly selected.
Recruitment processes that highlight the
‘softer’ skills will always deliver better results
– why not try it for yourselves? High collection
rates, low attrition rates and high customer
satisfaction rates will speak for themselves!
enforcement special
Recruit the ‘right bailiff’ recruiting bailiffs with the
‘softer skills’ achieves the best behaviour and often the best result, argues Ray Hatchard
“Bailiffs experience anti-social hours, work alone, have challenging targets, and sometimes are often on the receiving end of aggressive or/and emotional behaviour from debtors.”
IRRV Annual Conference & Exhibition 2011
Telford InternationalCentre 21-23 September
Go to www.irrv.net
24
INSIGHT
ww
w.ir
rv.n
et
enforcement special
dealing with payments, appeals and telephone
enquiries – resulting in greater staff efficiency.
Whilst the success of the open forum is not
measurable in terms of results, it has been
well received by all participants.
“We acknowledge the special nature of the
services offered as a bailiff company, and
recognise the importance of partnerships
being built by individuals and teams for the
duration of a contract,” continues Smith. “We
have an extremely high retention of staff and
clients. This is due not least to our in-house
training and development programmes for
our own staff, but also due to the close,
transparent and educational partnerships we
hold with our clients.”
New technology is also on the agenda during
training sessions, with Davies Enforcement
recently adding ‘real time’ updating to its
operations, using the Apple iPad. Further new
ways of enforcement will again be highlighted
during this year’s ‘Enforcement Summit’ on Wednesday 20 July – an event which
is sponsored by us for the fourth year in
succession. The theme is ‘new approaches to improving enforcement’, which with
complementing original techniques is “exactly
what we’re trying to achieve”, concludes Smith.
Bailiff law, new technology, complaint
handling, new enforcement techniques and
confrontation training are just some of the
aspects covered in Davies Enforcement’s debt
recovery workshop and open forum, which
brings together bailiffs, local authorities and its
residents, workers and visitors alike.
The company has prided itself in providing
‘added value’ training services to its clients
for several years, holding seminars at council
offices where advice is provided on telephone
and face-to-face collection techniques,
bailiff action, knowledge and law, giving
council staff an insight into what happens
after the issue of a warrant.
Initially aimed at strengthening partnership
working between the company and its
local authority clients, the initiative has
also expanded to include an open forum
with respondents affected by council tax,
commercial rent and/or parking debts.
“What we call the ‘workshop’ involves us
visiting council offices,” says Managing Director
Karl Smith. “The morning covers an ever
evolving training programme for council staff
– helping them to not only understand the
action taken by our bailiffs, but also to further
build relationships between the two parties.
“The success of this programme took a
further step forward when we decided to
trial the invitation of the council’s residents,
workers and visitors to an open forum in the
afternoon, relating solely to debt recovery.
The idea of the open forum is to allow
attendees to ask senior management from
the council and our company questions on
debt recovery in a controlled environment.
The subject of enforcement effects people
from all backgrounds, and often a face-to-face
discussion provides greater understanding and
respect with all concerned.”
The benefits of the training service to
council staff alone has assisted in achieving
greater collection rates at the initial stage of a
debt, thereby reducing time spent by staff in
“the initiative has also expanded to include an open forum with respondents affected by council tax, commercial rent and /or parking debts.”
With ‘new approaches to enforcement’ and ‘partnership working’ being key factors in debt recovery, Davies Enforcement has created a workshop and open forum to further enhance these two areas in particular, insight discovers
Davies secures southwark council contract
Davies Enforcement’s long standing client relationships have been further highlighted with the announcement that the company has successfully tendered for a four year contract with Southwark Council.
Davies has been the duly appointed bailiffs for the borough in the collection of road traffic debt since 1998 and this is now set to extend into a 16th year with the latest contract being awarded until 2015. Unlike the previous ‘parking-only’ affiliation, however, this contract fully encompasses the complete debt portfolio at Southwark Council – including parking, council tax and commercial rent.
“We believe this to be one of the longest standing bailiff/council relationships on record,” said Marketing and Contracts Manager Simon Melluish. “Whilst seeking new business is of course important, maintaining existing relationships is paramount to what Davies Enforcement is all about. We have an extensive list of long standing client relationships because of the ethical, open and hands-on way in which we provide our services. I am proud to say that I have been a part of this long standing and ever developing partnership with Southwark Council for more than 12 years and long may it continue.”
DEBT
to me, to you, together?
INSIGHT
JUN
E 2
011
25
automating your recovery now is the time to look
at automating your enforcement processes, says Duncan Baxter
been outstanding. It is only when time allows
that the cases are reviewed. It becomes a very
lengthy and time consuming process to keep
on top of the enforcement of debts.
I do not see the enforcement process as an
area that would really benefit from a ‘business
redesign’, as in principle it is as simple as, “has
the action succeeded?” “Yes” – job done, or
“No” – the action has failed! Wait even longer
or backtrack and try something else! I do
however see this area as an example of where
new technology would be beneficial.
One possible solution is to use your existing
workflow technology from within a document
management system to create process rules
and conditions that will take away the manual
checking of the files, and bring cases back
to the attention of enforcement offices as
and when the need arises. The disadvantage
with this approach is that the systems are
primarily designed to deal with documents
and document flow rather than processes,
and whilst an enforcement process could
be jammed into these systems, the overall
solution may not be as efficient as possible.
A more favourable approach is to use
the more sophisticated ‘business process management systems’. Such solutions are
less rigid than the existing workflow/document
management systems, and allow systems to
be designed at the process level. The solutions
can be used to track cases, prompt staff by
delivering items to users as and when follow
up action is required, route cases at key points
in the process, produce documentation, allow
In my days in local government, the most
interesting and dare I say it, rewarding,
aspects of the job, was the enforcement of
debts. Perhaps it was seeing a debt settled
that provided that job satisfaction. When we
provide an independent review of collection
and enforcement, it astonishes me how some
authorities are not always on top of these
cases, seem to leave cases with agents for
exceptionally lengthy periods, and do not have
efficient systems in place to monitor the cases.
The core systems for the administration
of council tax and business rates are brutally
efficient at issuing demand notices, reminder
notices and summonses without the need for
user intervention. A case could quite easily
be issued to the bailiff before any manually
intervention is applied, or even before the
circumstances of the debtor become apparent.
With the volumes of cases that authorities
deal with, this is certainly the most efficient
method, but not necessarily the most
customer focused approach.
It is when the debt reaches the post
liability stage that these systems seem to fall
short, and we have seen authorities resort to
checking extensive lists of cases (as and when
time allows) and even using paper files to
monitor the progress of the debts. There are
obviously numerous issues with any manual
checking or paper based systems, such as files
going missing, not keeping the paperwork up
to date, and of course missing deadlines and
overlooking cases.
As an example, committal (when or indeed
if used) is still very much a manual process
to a lot of authorities. We see examples of
warrants of arrest manually prepared, court
lists manually prepared, and cases manually
monitored. There are examples of warrants of
arrest that have been issued to enforcement
companies many years ago remaining
unexecuted. It is as though once the warrant
of arrest has been issued, that the authority
ceases to monitor how long the warrants have
data entry using bespoke forms, issue email
alerts, provide links to the enforcement agents
to improve process flow and communication
and of course use the sophisticated reporting
solutions to provide detailed analysis of all
stages in the process. The solutions can be
quickly developed, deployed and require
no lengthy implementation. All of a sudden
there is ‘an app for that’ – to steal a well
used phrase! I strongly believe that by having
tighter control of where the debt is at, and
reducing the static time of debts, that
authorities could achieve higher collection
rates. Surely in these days of tight budgets,
reduced resources and high demands on staff,
authorities should be on top of these cases,
and looking to minimise the delays in cases
sitting un-actioned?
“there are obviously numerous issues with any manual checking or paper based systems, such as files going missing, not keeping the paperwork up to date, and of course missing deadlines and overlooking cases.”
Duncan Baxter IRRV (Hons) is a Director
of Destin Solutions. Contact him on
enforcement special
26
INSIGHT
ww
w.ir
rv.n
et
enforcement special
Someone’s knockin’at my door...
Steven Everson leaps to the defence as bailiffs come under pressure from Big Brother Watch
author of the report genuinely believe that
such debt should be written off, that those
that choose not to pay their legal dues should
be allowed not to pay, and those of us that
pay our council taxes should be left to pay a
significantly increased level to make up the
shortfall? That would hardly be in line with the
TaxPayers’ Alliance aim to reduce taxes!
Bailiff companies are commercial
organisations, not publicly funded services.
There is no benefit to such companies in the
pursuit of those who genuinely cannot pay.
For those that can pay, but choose not to do
so, their legitimate debts must be enforced.
If they choose to ignore repeated requests
to make payment, first from the creditor and
then the bailiff company, then enforcement
action will and should take place. Such action
is expensive, and must be paid for by the
recalcitrant debtor rather than long suffering
council tax payers.
Another issue is the implication that such
debts are passed to bailiffs too readily. This
is nonsense. According to data provided by
CIPFA in the financial years detailed in this
report, just over four million liability orders
were passed to bailiffs in England, which
represents only 61% of the total number of
liability orders granted, and 7% of the total
number of council tax bills in that same period.
The report is littered with inaccuracies and
On 6th April 2011, Big Brother Watch
released a report entitled, ‘Who’s Knocking At
Your Door? ’ By way of explanation, Big Brother
Watch is a campaign from the founders of
the TaxPayers’ Alliance, and their aim is to
use the legal system to help the man in the
street fight injustice and regain his personal
freedom. Similarly, the TaxPayers’ Alliance
is a campaign group for lower taxes, including
council tax.
The report was ostensibly a research
document examining local councils and their
use of bailiffs and debt recovery agencies, and
the basis of the report was an examination
of responses to Freedom of Information
requests sent to every local authority in England,
Wales and Scotland earlier this year. The
requests covered the financial years 2007/8,
2008/9 and 2009/10, and sought the number
of residents that had their details passed to
enforcement agencies regarding non-payment
of council tax, and a similar request regarding
non-payment of parking infringements.
On the front of the report is a quote from
Daniel Hamilton, the Director of Big Brother
Watch, who states, “Sending in bailiffs to
recover debts should always be the absolute
last resort. The fact local councils have passed
more than six million cases to bailiffs for
matters as trivial as the late payment of council
taxes and parking fines is truly shocking.”
There are a number of issues that I wish to
address with regard to this report. The first
is the labelling of non-payment of council
taxes and parking fines as ‘trivial’. Every year
approximately £700 million of unpaid council
tax debt, unpaid parking fines, unpaid child
support payments, unpaid magistrates courts’
fines and other government debt is collected
by private certificated bailiffs and High Court
Enforcement officers. That is the equivalent
of the salaries of 30,000 nurses. Does the
“if they choose to ignore repeated requests to make payment, first from the creditor and then the bailiff company, then enforcement action will and should take place.”
Dr Steven Everson is Director General of
the Civil Enforcement Association (CIVEA)
misconceptions. It confuses the number of
liability orders and warrants with the number
of residents. As we all know, there are a hard
core of individuals who are ‘repeat offenders’
– there will be multiple liability orders and
warrants of execution for the same people.
It also refers to a CAB document published
in 2010 which fact was published in 2007.
That same CAB report involved a few hundred
reports where the debtor had felt overcharged,
harassed, or the bailiff was felt to have
misrepresented powers. There were no checks
conducted to verify the accuracy of the beliefs.
This self selecting group study, which could
never be classed as representative of the four
million or so cases dealt with by enforcement
agents each year, resulted in media headlines
asserting that two thirds of bailiffs were
guilty of harassment, 40% misrepresented
their powers and 42% charged excessive
fees. Unfortunately, as seen in the Big
Brother Watch report, this piece of fiction is
resurrected periodically by those wishing to
tarnish the reputation of individuals who are
merely trying to ensure that those who can
pay their dues do so.
The case studies featured in the report,
eight in total, are merely regurgitated press
clippings from up to five years ago. Whilst I
have no personal knowledge of any of those
cases, none were reported to my association
– in the light of all the cases being passed
to bailiff companies this represents a minute
number over that time frame.
Far from attacking the use of bailiffs to best
ensure that council tax arrears are paid, it
would surely be more prudent for Big Brother
Watch and the TaxPayers’ Alliance to support
and encourage their use. That way we could
all be more confident that revenues were
maximised and the pressure for council tax
rises reduced.
IRRV PublicationsWhat’s hot on the IRRV bookshelf in 2011!
To order online please visit the IRRV website www.irrv.org.uk
£495.00(plus VAT & £7.00
p&p per copy)
Annotated Council Tax Legislation 2011
Annotated Council Tax Legislation is a comprehensive 3 volume set, containing all the relevant parts of the Local Government Finance Act 1992 as well as appropriate sections and schedules from the Local Government Acts of 1999 and 2003, the Human Rights Act 1998 and the Greater London Authority Act 1999.
All statutory instruments from 1992 to the publication date are included, and all amendments brought about by these regulations and orders have been made to the originating text.
Annotated Council Tax Legislation is supplied in hard copy format together with an electronic PDF version.
IRRV Collection and Enforcement Conference 2011
The IRRV would like to thank the following company for their sponsorship of the
Collection and Enforcement Conference 2011:
opportunitiesthe public sector media
www.opportunities.co.uk
onlinejob listings & bannersplus weekly email for people actively looking for a new role
Specialist recruitment media for Revenues and Benefits people
on their deskopportunities magazine withadverts and features appealing directlyto people who could be tempted by a new career opportunity
28
INSIGHT
ww
w.ir
rv.n
et
Back office technology
This enables all landlords to see account
information as well as providing schedules
and letters online. This benefits the council
through reducing costs as well as making the
documents instantly available to the landlord.
A particular problem for Harrow was the
calls generated by landlords each time their
cheques were issued. At this time every month
calls from landlords made up 10% of all
telephone queries, mostly chasing payment.
One of the benefits of Secure Account is its
ease of use.
Secure Account launched in September 2010:
5160 users signed up in the first six •months with 150 new accounts being added each week2,500 hits per month•11% of council tax enquiries now come •via the account30% reduction in telephone enquiries •about outstanding council tax payments17% reduction in council tax visitors to •the one stop shop.
Single sign onThe secure element of providing access
to online services was vitally important to
the success of Harrow’s transformation
programme. Gandlake provided a registration
and authentication system to allow Harrow’s
citizens access to data held in the majority of
their relevant business systems.
A profile is created for each citizen
containing the necessary details to identify
each customer. Once set up the customer
can access and update it themselves. As a
result, citizens now have access to all Harrow’s
services through a single ID and password.
Benefit notification lettersBenefit statements are traditionally confusing
in nature, and Harrow, like most councils, were
receiving a steady flow of unnecessary contact
Council-wide solutions... online
Harrow Council looks after a total population
of 228,100 and with this figure growing (since
2001 it has gone up by 8.6%) they have to
come up with clever ways to manage their
customer contact.
Roughly 12,000 people visit the council offices
each month and the council receives around
60,000 calls in the same period. Harrow knows
dealing with customer queries is a costly process,
and researched the average cost for each type
of contact. An average face-to-face contact
at Harrow costs £4.41, £1.56 for an incoming
telephone call, and 11p for a web transaction.
With these figures in mind, and as part of
the authority’s transformation programme,
Harrow’s goal has been to encourage its
citizens away from more expensive channels,
and to start interacting with the local
authority online.
Harrow and Gandlake worked together
to develop a complete council-wide solution
that would enable them to achieve their
ambitious channel shift programme and
realise significant cost reduction.
Secure AccountThe first step was to implement Gandlake’s
Secure Account and provide every citizen
with an account, similar to online banking.
Once an account has been activated, the
citizen can review their account details and
correspondence with the authority, apply
for services, report instances or important
changes in their circumstances. Additional
systems are constantly being added including
access to housing and parking.
With Secure Account, council tax or benefits
related queries a citizen may have can be
quickly resolved on their own without the need
to call customer services or make a personal
visit to the council. Secure Account allows
the citizen to see all their account related
documents (demand notifications) online.
Harrow has also taken the company’s
landlords portal as part of the Secure Account.
“The citizen can review their account details and correspondence with the authority, apply for services, report instances or important changes in their circumstances.”
Insight investigates Harrow Council and Gandlake’s online success story, and finds out how the council has achieved significant channel shift and hugely reduced costs by embracing online transactions
throughout the year with huge peaks of activity
during annual billing.
In order to stop the confusion generated by
the benefit statements and ultimately reduce
the amount of unnecessary contact, Gandlake
produced a simple benefit summary letter for Harrow’s customers.
Key details, including reason for the letter,
changes in benefit eligibility amount and
benefit award periods, are extracted from the
benefit statement information produced by the
back office. This information is then presented
in a clear and easy-to-understand letter which
is included in the same envelope as the legally
required benefit statements.
SuccessHarrow has already achieved a 17% reduction
in council tax visitors to the one stop shop,
despite only having the service up and running
for a short time. The council is also receiving
20% fewer phone calls from claimants who
don’t understand the entitlement letter (this is
despite a 5% increase in claimants).
With all these initiatives implemented and
the number of contacts reduced, Harrow
managed to answer 90% of calls in 30
seconds in February 2011. What is probably
more impressive, though, is that after the
annual bills were issued, the council still
managed to answer 89% in 90 seconds when
compared to 82% at the same time last year.
This means they can concentrate their time on
customers who are more vulnerable, or who
have more complex needs.
The reduction in call volumes has allowed
Harrow to carry out more cross training in
their customer service centre which will
enable them to meet service standards more
consistently. Harrow is training staff in other
areas of the business, e.g. housing, so they
can help during peak times.
The right attitude to customer serviceJonathon Milbourn is Harrow’s Customer
OutcomeSignificantly lowered face to face and call centre contact.
Single sign onSecure registration and authentication provides each citizen with one ID and password to access all online services.OutcomeUsed to successfully authenticate all users of online accounts.
Housing benefit summary letterAccompanying letter used to simplify the information provided to all benefits customers.OutcomeVastly reduced queries on benefit summary contacts throughout the entire year.
What is next for Harrow?This is just the start of an impressive
corporate-wide transformation/channel
migration project. What started in revenues
and benefits and now includes housing will
be expanded to include a number of other
key services. Harrow will shortly be going live
with a new ‘Alerts’ scheme that includes
parking permit renewals, waste collection
information and service request updates
generated from their suite of fully integrated
e-forms. In addition, their citizens will be able
to customise their personal accounts with
specific information relating to the area they
reside in. This includes planning applications,
waste collection dates, local councillor
information, and some street events. Harrow
has no intention of stopping there, and their
next priorities are to include libraries, electoral
registration and adult social care.
“The reduction in call volumes has allowed Harrow to carry out more cross training in their customer service centre which will enable them to meet service standards more consistently.”
INSIGHT
JUN
E 2
011
29
Services Manager, and he is making a real
difference in improving the service for
his citizens.
One of Jonathon’s priorities was to take
ownership of Harrow’s website. “Being able
to quickly update and amend the website has
benefits for the team,” he explains. “Last winter
we could give timely updates on the situation
with gritting and school closures, reducing the
amount of related telephone calls.”
Additionally, Jonathon keeps a constant
look out for peaks in certain types of call.
For example, the call centre was beginning
to receive a lot of calls about problems with
bees, and how people should get rid of
them. Harrow contacted the bee keeping
organisation, which was forthcoming with a
great deal of information. The Harrow website
was quickly updated and gave out numbers of
bee keepers to contact.
Harrow has taken this one step further by
publishing alternative telephone numbers on
their website. They refer to this as the ‘Golden Number Strategy’, and this allows their
citizens to call direct to a specific department
without having to go via the main switchboard.
An example of this is one dedicated number
citizens can call if they have an enquiry relating
to anything environmental. This might be waste
collection, pest control or licensing, to name
but a few. As a result of implementing this
initiative, Harrow has seen a 30% reduction in
calls to their main switchboard, as calls are now
made directly to the relevant department.
Promoting an online attitudeThe call centre team at Harrow promotes online
services whenever possible, and they dedicate
any spare capacity to encouraging people to
sign up for an online account over the phone.
With more customers opting to use the online
account to answer their own queries, Harrow
can provide an all round better service.
Harrow has set up a mobile desk in their
reception to promote and help people sign
up to online accounts, and they will soon
be replacing their queuing system with a
more updated version that will be capable
of showing adverts to encourage further
sign-ups. Advertisements are also placed in
the ‘MyHarrow’ e-newsletter, which goes to
12,000 people on a monthly basis, and anyone
visiting Harrow’s website will see a MyHarrow
button on the main home page which, when
clicked, will take them through a step-by-step
process of signing up to an account.
Corporate-wide successThe work carried out between Gandlake and
Harrow has expanded across many levels of
Harrow’s business, and has helped drive a true
change in attitude to the way citizens interact.
This has been an extremely successful project
for Harrow, and continues to be so. All the
statistics indicate that channel shift at Harrow
is moving in the right direction, with face-to-
face and telephone contact falling and online
contact rising. Harrow’s success rate speaks
for itself. In 2006/07, 10.4% of all customer
contact came through the web. In 2009/10,
this figure jumped to 59.5%.
HArrOW’S CHAnnel SHifT SuCCeSSface to face2006/7 – 8.6% of all contact2009/10 – 5.5% of all contactTelephone2006/7 – 81% of all contact2009/10 – 35% of all contactWeb2006/7 – 10.4% of all contact2009/10 – 59.5% of all contact
HArrOW’S ACHievemenTS AT A glAnCeSecure accountAll citizens are provided with an online account, and can now answer their own queries without having to contact the council.
30
INSIGHT
ww
w.ir
rv.n
et
LGA focus
that some councils collect far more business
rates than others? And how do you solve
the problem that whereas only one council
in each area, the billing authority, collects
business rates formula grant, and hence also
redistributed business rates is paid to all the
councils in an area?
There are technical solutions to these
problems. For example, a district could pay
some of the business rates it collects to the
county in which it is situated, similar to the
manner in which it collects council tax and
pays it over. That would mean that less would
have to be paid over into the central pool.
But it is likely that there would still have to
be some sort of redistribution mechanism, as
some councils collect much more than others.
Some councils, in areas with a declining
business taxbase and little room for expansion
of businesses, are likely to continue to be net
pool recipients – some Inner London councils
with an exceptionally large business taxbase
are likely to continue to pay into the pool.
Many in local government would like to
see an end to the current ‘four block’ model
system of distributing formula grant, which
they see as lacking transparency and hard to
explain. Even if the four block model is used
initially, many would hope that in the long
term it proves possible to devise a system
for measuring needs and resources which is
easier for key stakeholders, such as councillors
and senior officers, to make sense of.
Another key question for the Review to
address is business rate revaluation.
Currently revaluation takes place every five
years. One of the key points is that it takes
place to a constant yield, in other words the
yield from business rates is the same both
before and after revaluation. As the total
rateable value tends to rise in revaluations, the
rate in the pound, or multiplier, tends to fall.
This happened in the 2010 revaluation. One
way of looking at this is that the multiplier is
Focus onthe local
The terms of reference for the Local Government Resource Review were
finally published in March, and the review is
now under way. Its main focus is likely to be
business rates. How can more localism and
incentives be put into the system, taking into
account that business rates account for the
vast majority of formula grant?
The current system has existed for the last
20 years. Councils collect business rates but
they are paid into a central pool and then
redistributed as part of formula grant. Many
will welcome the ability to keep more back
instead of paying it all to the government.
However, what is to be done about the fact
“But it is likely that there would still have to be some sort of redistribution mechanism, as some councils collect much more than others.”
Business rate localisation may seem an attractive proposition, says Mike Heiser, but there are risks attached
Mike Heiser is benefits lead with the
Local Government Association
IRRV Annual Conference & Exhibition 2011
Telford InternationalCentre 21-23 September
Go to www.irrv.net
devalued. If councils are going to be allowed
to keep the produce of business rates growth,
then how revaluation is dealt with is one of
the points at issue. One option could be for
revaluation to be a local matter, as opposed
to having an overall national revaluation every
five years.
Would councils have leeway to vary the
multiplier? The terms of reference of the
Review do not explicitly rule this out. Some
would see it as a true test of localism for
councils to be given the right to set their
business rates, which was removed from
them in 1990. This might be within limits. In
previous submissions, the LGA has called for
councils to be given a leeway of +/- 3% above
or below a national guideline amount.
How would discounts and reliefs be dealt
with? Currently there is a mixture of local and
national reliefs. The Localism Bill provides
for councils to have more leeway to deal with
reliefs, but no more resources. If councils keep
more of their business rates, they would have
more scope to make local decisions.
It looks as if the Review will have a
significant effect in changing the local
government finance system as we know it.
The potential gains for local government as a
whole are significant, but so are the risks.
INSIGHT
JUN
E 2
011
31
LGO update
The actions and decisions of local authorities
should rest on solid foundations, such
as following local or central government
procedures and guidelines, and not fettering
any discretion. But the two cornerstones are
that any actions or decisions should be legal
and be reasonable.
A recent report (reference 10 007 469)
from the Local Government Ombudsman
touches on the relationship of these two
principles in the area of local taxation recovery,
and Slough Borough Council’s efforts to collect
the council tax owed by Mr Worden (not his
real name).
Mr Worden owed the council a considerable
sum of council tax. Each year he was
summonsed, and made an arrangement which
he then failed to keep. Eventually the debt,
some £1,500, was passed to the council’s
bailiffs. He made an arrangement, but again
did not keep to it, so the liability orders were
passed to an experienced bailiff. The bailiff
called, and Mr Worden, having opened his
door, refused to allow him access or to discuss
making an arrangement. The bailiff began to
list the items he proposed to levy on, starting
with the doormat. At this point Mr Worden
closed the door. The bailiff completed the
levy and posted the levy notice through the
door, with levy and attendance fees totalling
£274.50. Mr Worden wrote to the bailiffs. As
well as agreeing to an arrangement, he also
complained about the levy. He suggested it
was an irregular levy on a low value item. In
reply, the company said that Mr Worden was
liable for the charges and, “when making
an arrangement, a bailiff needs to levy
on anything available to secure the debt.
Therefore as he was unable to enter the
property, the doormat outside your property
was levied on.”
Mr Worden complained to the council.
Its response was that the charges were
correct. Mr Worden then complained to
the Ombudsman. Between us receiving
the complaint and contacting the council,
it decided that a mistake had been made,
and asked its agents to cancel the levy and
attendance fees.
The Ombudsman had several concerns. First,
the levy notice says the arrangement fee was
£224.50 – later it was described as £180. The
bailiff firm says this was an error. Second, the
bailiff ’s reference to having to levy on items
when making an arrangement was puzzling.
When questioned on the point, the firm
said that, “when making an arrangement, a
bailiff needs to levy on anything available to
secure the debt”. The Ombudsman suggested
this was a misunderstanding of the law. In
response, the bailiffs said that the law does
not make any provision for arrangements. This
is correct – any arrangements made to pay
council tax (other than the statutory instalment
scheme) are at the discretion of the council
or their agents. But the statement was that
the bailiff needs to levy on something before
making an arrangement. If by ‘needs’ the
bailiffs meant ‘by law’, they were mistaken.
If they meant this was their policy, the
Ombudsman was not clear how they are
able to make arrangements when they are
contacted at an earlier stage in the recovery
process before they have levied on goods. The
bailiffs told the Ombudsman that the levy was
legal, but they also told her that an error had
been made, and so the costs were cancelled.
There seemed to be a contradiction.
Bailiffs will not always be able to find
goods of sufficient value to clear the debt and
the costs, and it is entirely legal to distrain
on goods of a lower value and charge the
statutory fees for doing this. It will be a matter
for the judgement of the bailiff as to how
reasonable the disparity between the potential
value of the goods and the debt is. In some
cases it will be appropriate for the debtor to
challenge the reasonableness of such a levy in
the courts – that will depend on the facts of
each case. But in some cases, and this is one,
the unreasonableness of the action should be
apparent, and there is no need for legal action
to establish this.
The Ombudsman found that the failure to
consider the reasonableness of bailiff actions
was maladministration. As Mr Worden’s
non-payment had been the reason for the
bailiff action, and the costs had already
been removed, the Ombudsman did not
think sufficient injustice had been caused
to require any remedy. But she issued the
report to draw attention to the practice of
low value levies, which information from debt
advice agencies suggests may be widespread.
She was also concerned that despite Mr
Worden complaining to the bailiff firm and
the council, neither of them appears to have
considered if the bailiff ’s levy was both legal and reasonable. Councils and their agents
should check that their actions stand on
both of the twin foundations of legality and
reasonableness.
A copy of the report and further
information about the role of the Local
Government Ombudsman is on our website
at www.lgo.org.uk
In our regular Local Government Ombudsman column, reasonableness and bailiff action come under scrutiny in a recent case highlighted by Andrew Hobley
Andrew Hobley is Senior Investigator with
the Local Government Ombudsman
“But in some cases, and this is one, the unreasonableness of the action should be apparent, and there is no need for legal action to establish this.”
Standing on solid foundations
32
INSIGHT
ww
w.ir
rv.n
et
collection focus – shared services
A fair shareinsight investigates the rise and retention of back office shared services through the eyes of Capita Software Services
who cannot afford to pay their rent or council
tax due to personal reasons are receiving the
help they need more quickly. The revenues
and benefits information for each council
appears as a single set of information, which
can be accessed and updated. The reporting
and analysis can be provided for each local
authority, while still allowing the councils
to gain the efficiencies and cost savings
associated with operating a single solution.
So far, the shared service has secured savings
in excess of £1 million.
The partnership made sense from a
geographical point of view, and also in the
strength of capabilities that could be pooled.
However, it is worth noting that the success of
creating back office shared services doesn’t lie
solely on each authority’s capabilities, but in
them sharing the same aspirations and vision,
supported by a single software application
with a common front end.
It is also possible for local authorities
to improve by working with other, more
efficient, local authorities within a healthy
performing partnership. The founding
members of the South Dorset Revenues and
Benefits Partnership brought about results
The concept of sharing back office services has been discussed as an option for a number of years, but the current requirement to streamline services and save money is helping it secure its place firmly in the future of local government processes. Keith Graddon, Senior Product Manager at Capita Software Services, reminisces about the beginnings of back office shared services, explores how it ’s working for one group of authorities, and takes a look at how things might develop in the future.
Historically, back office shared services were
mainly used for high profile functions, such
as revenues and benefits operations. This
seemed to be an obvious starting point, as
it is a core function with a high volume of
transactions and enquiries. The model also
appealed to smaller authorities who didn’t
have the resource, or capabilities, necessary
to purchase the latest software or provide
appropriate levels of staffing.
It has made perfect sense for certain
services to be shared amongst neighbouring
local authorities – those who either share
boundaries, or are located within close
proximity to one another. However, authorities
are also being approached to join shared
service ventures due to the quality of their
current solutions, and are seen as welcome
additions to existing services. Take the
South Dorset Revenues and Benefits Partnership, for example. In 2006, West
Dorset District Council and Weymouth and
Portland Borough Council merged their
revenues and benefits teams. They brought
together the expertise, knowledge and
resources of all departments responsible for
council tax, business rates and benefits.
The collaboration was such a success
that in 2009 Purbeck District Council also
joined forces. Performance has increased
significantly in that time, meaning that people
“the model also appealed to smaller authorities who didn’t have the resource, or capabilities, necessary to purchase the latest software or provide appropriate levels of staffing.”
in performance by steadily improving over a
period of 36 months. Over this time frame, the
partnership experienced a dramatic reduction
in the number of days it took to process new
claims – from an average of just over 40 days
down to a record low (at that time) of 22
days. When the third local authority joined
the partnership (already a well performing
authority), not only did they see their own
performance improve by a further eight per
cent, but it continued to improve across all
three partners, with a steady reduction in the
number of days taken to process a new claim.
This can be attributed to real generic working
across the entire partnership, coupled with a
steady and consistent performance.
So how will the future fare for back office
shared services? It is likely to extend into
enabling the inclusion of certain elements
of front office working, for example, shared
contact centre environments. This would be
a natural progression, and certainly make
sense to enable continuity between front and
back offices. There is also likely to be a move
to increased automation and channel shift
with an emphasis on online efficiency. South
Dorset Revenues and Benefits Partnership, for
example, uses the internet widely, providing
self service capabilities, and will be enabling
its customers to submit claims or changes in
circumstances electronically. Implementing
e-change in circumstance alone enables the
partnership to anticipate savings of between
£40k and £50k per annum, with an expected
increase in levels of service to citizens.
What grows organically out of shared
services is a culture of trust amongst the
authorities involved, where they begin to
explore the sharing of best practice and
resources in other areas – and that can only
be a good thing to aspire to in the future. The
result being that you are demonstrably doing
more with less, providing a better service to
the citizen, and increasing efficiency within the
organisations involved.
Giles reid, director with Capita Local Government Services, discusses how local authorities can generate additional revenue by identifying single person discount fraud
33
the council is set to recoup over £750,000 more than expected in council tax in 2010/11. As a result of this additional income, residents across Kent were able to benefit, with a share going to Kent County Council, Tunbridge Wells Borough Council and also the police and fire and rescue services.
So, how do you maximise your revenues by reducing fraud? We have found that the most effective solutions make the best of both technology and industry expertise. The verification process involves the scanning of databases to ascertain whether or not there is a chance that more than one person might be living at a property. A number of cases will appear to be high or medium risk, and these are the ones that should be focused on. Eliminating the proportion that are established as being low risk at these early stages means that resources are directed more effectively.
Trained call handlers then contact the high and medium risk cases and carry out a telephone interview using voice recognition analysis. The technology generates a trigger which indicates whether or not there is need for further investigation. The technology, combined
It was estimated in the Audit Commission
report, ‘Protecting the Public Purse’ (September 2009*) that single person discount fraud (SPD) could be costing the taxpayer up to £90 million per year. It is fair to say that the impact that this amount could have on communities, local authorities and public services has never been more pertinent than it is now. In reality, when individuals falsely claim single person discount, it’s the honest majority of taxpayers that pay for it, often in increased council tax rates.
The Audit Commission report suggested that local authorities should, among other solutions, assess the effectiveness of their current arrangements and take action where necessary, focus on high risk areas, and where appropriate work with other organisations to reduce fraud and the harm it causes. 18 months on, the need is still undeniably there, so has progress been made?
Local authorities have historically made every effort to combat this type of fraud, and others, including tenancy fraud. However, in the current financial climate, we have certainly experienced an increase in local authorities looking for alternative and innovative ways to address this issue. This could be for a number of reasons, because not only did the Audit Commission report highlight what could be done, but today there is undoubtedly more public pressure. Citizens want cheaper council tax, they want to see their council making an effort to save money, and they want benefits to be going to those who truly need them.
One of the authorities we have worked with is Tunbridge Wells Borough Council in Kent, and as a result of using a unique verification technique and voice recognition analysis (VRA) technology,
* http://www.audit-commission.gov.uk/
SiteCollectionDocuments/Audit
CommissionReports/NationalStudies/
20090915protectingpublicpurserep.pdf
with the expertise of the call handlers, means that it is possible to investigate incidents where single person discount may be being paid to those who are not eligible. In fact, we have found that it is possible for local authorities to reduce the number of single persons discount claims up to 11% per year.
To go back to the earlier question of what progress has been made in combating single person discount fraud, the achievements made with Tunbridge Wells Borough Council demonstrate that yes, progress has been made. What’s more is that tangible savings can be achieved by focussing on where there is the most chance of success, and utilising all the innovative solutions that are now available.
Single person discount fraud is just one type of fraud that can be reduced, and in the process, tackling it helps local authorities generate more revenue. Looking at how to combat housing tenancy fraud and at streamlining the entire benefits administration process can also contribute to what will be a challenging few years for councils trying to make savings.
collection focus – sinGle person discount fraud
Home alone?
“however, in the current financial climate, we have certainly experienced an increase in local authorities looking for alternative and innovative ways to address this issue.”
IRRV Annual Conference & Exhibition 2011
Telford InternationalCentre 21-23 September
Go to www.irrv.net
INSIGHT
JUN
E 2
011
34
INSIGHT
ww
w.ir
rv.n
et
collection focus
How well is your council faring at collecting debt?
asks experian’s Alex Bowes
So how good are local authorities at collecting outstanding council tax
and other debts? Clearly it ’s not fair to treat all councils equally when
there are such variations of affluence and deprivation across different
local areas. A local authority (LA) in an inner city may be operating
extremely efficiently, but has a collection rate well below that of its far
more affluent leafy-suburb neighbour. The affluent suburban LA may
not be collecting nearly as efficiently as its poorer counterpart, but how
do you tell or recognise excellence without an effective benchmark?
A local authority in a highly deprived area cannot be expected to
collect at the same rate as one in more affluent climes and so we
cannot rank performance or set realistic future targets without taking
into account the socio-demographic differences and deprivation as it
occurs across urban and rural Britain.
If we can establish an effective benchmark, we can begin to identify
those local authorities that are punching above or below their weight.
In the absence of effective central assessment, as organisations such
as the Audit Commission cease to provide central auditing, Experian
has developed a means of predicting council tax collection rates based
on its detailed consumer socio-demographic profiles.
The aim was to analyse the relationship between LA collection rates
and their socio-demographic profile in order to provide an indication of
how each LA has performed in collecting council tax and to benchmark
against other LAs which share a similar demographic profile.
Measuring deprivationTo begin with, there needs to be a consistent deprivation measure
across all UK LAs. Not as easy as it sounds, since the official toolsets,
the Indices of Multiple Deprivation (IMD), have been created with
separate indices for England, Scotland, Wales and Northern Ireland.
The indices use different underlying indicators and domains, are
updated at different times and frequencies and use different small area
geographies to record levels of deprivation. This means that without
additional input the existing indices cannot be used as a single UK IMD.
Another challenge with adopting the IMD as the benchmark is the
level of granular detail it offers. The IMD aggregates at Lower Super Output Area level (LSOA) , which means it misses vital pockets of
deprivation which become evident using a more targeted measure
based on person or household level data. However, by linking IMD to
a person or household classification, such as Mosaic, you can provide
a more detailed and accurate understanding of each citizen’s location,
demographics, lifestyles and behaviours.
Mosaic Public Sector classifies all individuals, households or
postcodes in the United Kingdom into a set of homogenous lifestyle
types. 146 Mosaic person types aggregate into 69 household types
and 15 groups, to create a three-tier classification. The types identify
groups of individuals (or households or postcodes) that are as
similar as possible to each other, and as different as possible to any
other group.
Predicting collection rates by linking Mosaic Public Sector to the indices of deprivationFor each LSOA in England, we know the IMD 2007 score, the Mosaic Type of each postcode, and the number of households in each
postcode. We are therefore able to create an ‘average’ index value for
each Mosaic Public Sector type. Overall Mosaic Public Sector is a close
proxy for the indices of deprivation. Mosaic types that are indicative of
deprivation have the highest calculated deprivation score.
Using regression modelling we have been able to demonstrate how
Mosaic Public Sector can be used to predict (and benchmark) in-year
council tax collection rates for England, Scotland and Wales. In fact,
it shows how accuracy rates are significantly improved when using
Mosaic rather than IMD alone.
Using IMD 2007 results in 61% of the variance in English LAs’
council tax collections rates being explained. Using Mosaic Public
Sector, the variance explained increases to 77%, but is not significantly
further improved by combining Mosaic Public Sector with IMD 2007.
Alex Bowes of Experian Public Sector
can be contacted for more information
on 07967 342847
The use of Mosaic Public Sector in collection activities provides some
real additional benefits, for instance:
Mosaic identifies not just the presence of deprivation but allows small •
areas of deprivation to be pinpointed (down to individual household
level, rather than whole LSOA as in the case of IMD 20007). This
means local authorities can adopt more personal strategies when
tackling uncollected debt
Mosaic also provides evidence for the types of issues encountered in •
an area so local authorities have a more realistic assessment of the
likelihood of successful recovery
Mosaic also helps inform the type of communication and channel •
choice when targeting people for collections.
The new measure helps us identify those LAs that have punched
above their socio-demographic weight. Using the UK model (2009-
2010 collection rates) allows us to identify the LAs that are performing
significantly better than their demographic profile would suggest, and
those that are performing as we would expect given their profile.
The top five over-performers (and corresponding observed and
predicted collections rates) are:
The par performers (where observed collections rates are approximately
equal to those predicted given their socio-demographic make-up) are:
Our research shows that if all of the ‘under-performing’ authorities
(where actual collections rates are lower than predicted given their
profile) were to improve collections rates to achieve the predicted
levels, the result would be:
an additional £64 million collected by English authorities •
an additional £6 million collected by Welsh authorities.•
Where next?
With ever tightening budgets and a continuing squeeze on resources,
LAs are faced with the daunting challenge of maintaining and even
improving their existing collections rates for both in-year and aged debt.
The key question is how can the level of performance be continued
or even bettered with fewer staff and limited resources. Experian’s
analysis shows that there is scope for improved collection performance
in many LAs through better targeting of people that can pay but have
chosen not to.
There are no easy answers, however, the use of detailed and accurate
consumer data to discern the financial circumstances of debtors remains
a key and proven means in achieving more targeted and profitable
collections. A one-size-fits-all approach to collections can only result in
the costly pursuit of hopeless cases, and, at worst, victimises the most
vulnerable in society, resulting in bad PR for councils. The goal must be
to reduce the number of cases sent out to bailiffs whilst concentrating
time, effort and limited resources on those that have the means but not
the inclination to repay debts. This can only be achieved by segmenting
those who can’t pay from those who won’t, and tailoring strategies,
communications and processes accordingly.
Many councils have been able to improve their collection rates
significantly by drawing on a range of external data sources provided
by credit reference agencies. For example, the use of a segmentation
system, such as Mosaic, combined with a council’s own data and
Experian’s extensive consumer information enables the creation of
highly accurate and individualised debtor collectability scores. This
information enables LAs to determine the best strategic approach for
individual debtors, ensuring a fair and consistent approach, as well as
setting realistic and predictable rates of return for collections. The debt
prioritisation service provides a collectability score for each debtor with
a full financial profile, contact information and selected best strategy
approach for a successful collections outcome.
Experian can help councils by providing a free debt report which
details the number of traced debtors, updated addresses, telephone
numbers, propensity to pay and a realistic expected return on
investment. This allows for the creation of a joint and robust business
case for councils, showing where they can invest their resources most
effectively when recouping aged and non-performing debt.
But what can be done when those who can pay still refuse to do so?
In response to market demand, we have now launched an Attachment of Earnings (AOE) Service. This service is designed to help a local
authority with the process of setting up an AOE for individuals who are
not in a position to settle an amount owed in full but are employed.
For council tax debt, the service is aimed at post liability order and
pre-bailiff actions. This includes a debtor tracing service which provides
revenue and benefits teams with home phone numbers of debtor,
employment status, employee name, employment address and work
phone number.
INSIGHT
JUN
E 2
011
35
collection focus
Country Local authority Observed in-year collection rate 2009-2010
Predicted in-year collection rate 2009-2010
England Sandwell 97.95% 95.36%
England Newcastle upon Tyne 96.71% 94.13%
Scotland West Dunbartonshire 94.10% 92.03%
England Blackburn with Darwen 96.97% 94.97%
England Lincoln 97.93% 96.02%
Country Local authority Observed in-year collection rate 2009-2010
Predicted in-year collection rate 2009-2010
England Rotherham 97.05% 97.00%
England Mansfield 96.97& 96.95%
England Tandridge 98.71% 98.70%
England Thanet 96.25% 96.24%
England Tendring 97.79% 97.79%
“A local authority in a highly deprived area cannot be expected to collect at the same rate as one in more affluent climes.”
“the key question is how can the level of performance be continued or even bettered with fewer staff and limited resources?”
36
INSIGHT
ww
w.ir
rv.n
et
Technology
According to the DWP, the goal is to simplify
the system and to ‘make work pay’ – in
other words, reduce dependency on benefits.
Reforms to benefits in the pipeline aim to
increase take-up of unclaimed benefits and “lift
around 950,000 individuals out of poverty”.
One of the most important changes to the
system will be the introduction of Secretary
for Work and Pensions Iain Duncan Smith’s
initiative, Universal Credit (UC). This will
see six existing means-tested benefits and
tax credits condensed into a single payment,
blending income-related jobseeker’s allowance,
housing benefit, child tax credit, working tax
credit, income support, and income-related
employment support allowance.
The advantages of this ‘super benefit ’ are
clear: “The amalgamation of benefits reduces
the number of sources to one that must be
advised when the customer’s circumstances
change,” says Kerry Macdermott, IRRV
President. “It should therefore reduce fraud
and error.”
Claimants will undoubtedly welcome the
end of the long-time bugbears of the current
system – repeatedly providing personal
details, and excessive form filling. Perhaps an
even more radical change to benefits delivery
as we know it is that UC will be administered
and accessed almost entirely online – the
target is 80% take up. Claims will be opened
and managed by claimants, and they will even
report significant changes of circumstance and
communicate with benefits staff via the web.
While the final delivery model is still being
clarified, the DWP has announced plans to
give the website the ‘look and feel’ of online
banking. Claimants will also, for example, be
able to view the effect of increased earnings
on their household income. “Online access
will remove the substantial costs associated
with a personal face to face service,” adds
Macdermott. “But where will those customers
visit for support, especially pensioners, if
they are not IT literate? They will clearly be
disadvantaged,” he adds.
Superbenefit or arch villain?
Many ministers have spoken about it, but no
recent government has had the nerve to tackle
it. Welfare reform is here, and it is set to cause
the biggest shake up of the benefits system this
country has seen for around 60 years.
“The chances for missing rent payment and slipping into arrears will consequently increase, particularly for those who may not be used to managing their own budget.”
Universal Credit sounds so attractive on the face of it, suggests Mel Poluck, but the professionals see some significant pitfalls
Mel Poluck is a freelance writer and
communications manager. Contact her
Broadband is often a ‘utility’ that people
claiming benefits have to forego, because they
cannot afford it. For those without access, or
lacking IT literacy skills, there are plans for a
phone service, using the voice recognition
software used by many cinema box offices.
But in what may be the most controversial
of the plans, it will be the DWP, not local
authorities, who will be responsible for
delivering and maintaining UC. Government
is likely to struggle to match the deep well of
local knowledge and expertise held by local
authority-based practitioners. Testament
to this is the case of JobcentrePlus asking
construction site labourers (who do not
normally use CVs) being asked to present a CV
before they could access job seeker services.
“Local authorities have an excellent track
record in delivering welfare reform in a timely
manner,” Macdermott tells Insight. “Processing
times exceed those currently achieved by
the DWP. Online processing will still require
document and personal circumstances
verification to prevent fraud and error entering
the benefits gateway. The challenge will be to
deliver within time and budget.”
To kick start IT development, the DWP
received £18 million from the Treasury
last April, even before Royal Assent for the
Welfare Reform Bill was granted. The DWP
is taking an ‘agile approach’, meaning software
development code will be simple, testing will
happen frequently, and functional elements of
the build are delivered as they are ready.
So where does this leave local authority
software suppliers? For a start, the introduction
of UC will see the end of housing benefit/
council tax benefit as we know it, albeit
replacing some of it with a localised council
tax rebate scheme. This will be a blow to
suppliers for whom housing benefit has been
a significant revenue stream. “I think they have
underestimated the complexity of housing
benefit,” says Jon Gibbs, Pre-sales Manager at
Civica’s Openrevenues. “DWP knowledge of
that area is scant.”
IRRV Annual Conference & Exhibition 2011
Telford InternationalCentre 21-23 September
Go to www.irrv.net
INSIGHT
JUN
E 2
011
37
Technology
Gibbs says the introduction of
UC will potentially create software
redundancy at local authorities, but local
authority software suppliers will still have their
work cut out. “The challenge is to deliver a new
council tax rebate system, then to maintain
levels of support for potentially ‘dying’ systems.
For us to make changes or to write a new
system for council tax rebates for 2012 is
going to be a challenge, particularly with no
information [currently] available,”
says Gibbs.
Nigel Blair, Product Director at Northgate
Public Services highlights other challenges. “We
do not believe that government’s objectives will
present many technical challenges. However,
the emphasis should instead be placed on
tackling the digital divide, if the government’s
ambitions for the UC are to be achieved,”
he says.
“Local authorities will still require their
existing systems for some time to come. Even
when UC comes in, there will be a need for
an overlap between new and existing systems
to ensure continuity of service for staff and
citizens,” says Blair.
Blair also hints at the current lack of
information needed to know how best to
proceed – “We are awaiting further clarification
around some of the specifics of the policy
before we finalise out strategy to help councils
implement this.”
According to IRRV Chief Executive David
Magor, this lack of information threatens to
hamper implementation of the project. “The
DWP has failed miserably to communicate
plans to local authorities about UC,” says Magor.
“It is a massive reform and it’s going to affect
everybody who touches the social security
system – the most needy in our community.”
To address the communication void, and to
prise further information and clarification from
the hands of government, the IRRV’s Magor and
Macdermott wrote a joint letter to Iain Duncan
Smith and Minister for Welfare Reform Lord
Freud to give government “an insight into the
problems you will be facing”. The letter explains
that including housing costs in UC will adversely
affect implementation and administration.
“We’re against the inclusion of housing costs
because it’s a benefit connected to a third
party – the landlord,” says Magor. “It will cause
chaos,” he says, adding that the move is like
“turning the clock back”.
Magor explains why it may be detrimental.
If a claimant relies completely on benefits
with no other source of income and lives in
social housing, for example, that person will
have to make a decision each week about
their spending priorities. They will need to
contribute to their housing cost from the single
payment they receive. The chances for missing
rent payment and slipping into arrears will
consequently increase, particularly for those
who may not be used to managing their
own budget.
The letter, openly available on the IRRV
website, included around 100 questions
gathered from practitioners about implementing
UC and its impact on local authorities. The
questions addressing IT included , ‘Why weren’t
local authority software suppliers given the
opportunity to tender for systems? ’,
‘Will there be an interface with local
authority housing and council tax systems? ’,
and ‘What are the contingency arrangements
for delays or failure in the delivery of software? ’
The next step is to send a further 200
questions. “I’m determined government starts
to listen before it’s too late,” says Magor. If
no response materialises, the pair intend to use
Freedom of Information law to get answers.
The IRRV will maintain the pressure through
the ongoing consultation it regularly holds
with civil servants, although Magor predicts
possible trouble ahead, due to UC “bringing
in a new breed of civil servants with no
practical experience”.
In 2013, UC will begin for new claimants.
That’s just two years from now. Migration from
existing benefits will continue until 2017. “The
timescales are frightening. Talk to suppliers
who’ve written local taxation systems software
– they’ll tell you it’s impossible,” says Magor.
This rare chance to overhaul an overly-
complicated system which some say suffocates
careers and ambition could never be anything
less than daunting, technically and culturally.
But it seems that unless more thought is
put into the way claimants will access UC,
it threatens to leave behind the most needy
in society. For it to work, more consultation is
needed with the experts working on the ground
– the benefits professionals.
“The reality is benefits needs face-to-face
contact,” Magor concludes. “Making the
assumption that people will apply online for
benefits and fill out forms online is not the
reality. I’m worried about the way people will
react. If lots of people don’t claim because of
the ‘digital default’, it’ll be a tragedy.”
38
INSIGHT
ww
w.ir
rv.n
et
Doherty’s despatch
(OECD), the Paris-based international think
tank of largely developed nations.
Between 2003 and 2007, the UK
strengthened its position as one of the
biggest investors in families among developed
countries, the authors of a new report,
Doing Better for Families, say. “Early years
spending rose substantially, driven by new
cash support for children around birth, and
increased investment on childcare services,”
one of the authors, Dominic Richardson, said.
In 2007, the UK spent more on children
than most OECD countries, at just over
£138,000 per child from birth up to the
age of 18, against an OECD average of just
under £95,000.
Before the financial crisis, and during a
period of increased investment (1995 to
2005), child poverty in the UK fell more than
in any other OECD country. In 2005, it was
10.5%, down from 17.4% in 1995, compared
to an OECD average of 12.7%. In the same
period, the growth in average family income
was third highest in the OECD.
I can’t help thinking that the proposed
welfare reforms, and in particular the
reductions in housing benefit, are not going to
help improve the situation.
Benefit claimants ‘fit for work’Three-quarters of claimants who apply for
sickness benefit are found fit to work or
drop their claims before they are completed,
according to official figures.
Over a 22-month period, 887,300 of the
1,175,700 applicants for Employment and Support Allowance (ESA) – the successor to
the old incapacity benefit – failed to qualify for
any assistance.
Of those 458,500, 39% were judged fit
to work, while a further 428,800 (36%)
abandoned their claim before their medical
assessment had been completed, according
to the figures released by the Department for
Work and Pensions (DWP) in May.
Cuts, more cuts, ‘fit for work’ benefit claimants, customer service standards and more
Spending cutsFollowing the local elections, the next few
months will prove to be interesting, when
the promises made by many of the new
administrations to review cuts made by
previous administrations are tested. What is
certain is that no more money has become
available as a result of the elections, so it is
difficult to see how fundamental changes can
be made in budgets when we are already into
the financial year.
The other aspect of the cuts that is
becoming apparent is that the speed and
efficiency of local government budgeting
for 2011/12 – making deeper cuts than in
other parts of the public sector – is in sharp
contrast to central government services such
as defence, universities and welfare, where
Whitehall holds the purse strings. There are
already stories in the press about the Ministry
of Defence requiring additional funding. Higher
education funding reforms seem likely to
overrun original cost estimates, and the move
to Universal Credit is going to increase the
welfare budget – at least in the short term.
Local authorities have so far done an
excellent job in meeting the Chancellor’s
requirements in the Spending Review, whilst
still broadly protecting services, but my guess
is that the major central departments will not
meet their obligations, which might in turn
put additional pressure on local government
to make further cuts in future years. After all,
if previous experience is anything to go by,
central government departments do not have
a great track record in reducing expenditure.
Impact of spending cuts on child povertyProgress on tackling child poverty in Britain
has stalled and social spending on families
needs to be protected, experts have
warned. Cuts already announced will affect
many families, said the Organisation for Economic Co-operation and Development
“Local authorities have so far done an excellent job in meeting the Chancellor’s requirements in the Spending Review, whilst still broadly protecting services.”
Pat Doherty has been working overtime again with his round-up of the world of local government
Pat Doherty IRRV (Hons) CPFA is an
independent consultant and a Past
President of the IRRV. If you wish to
comment on anything in the article please
email him at [email protected]
IRRV Annual Conference & Exhibition 2011
Telford InternationalCentre 21-23 September
Go to www.irrv.net
Cuts, more cuts, ‘fit for work’ benefit claimants, customer service standards and more
“More often than not it is investment in more complex, harder to define activities such as empowering staff and gaining an understanding of the customer viewpoint, that bring the best returns.”
INSIGHT
JUN
E 2
011
39
Doherty’s despatch
The Employment Minister has said that the
figures underlined the need to reassess
people still on the old incapacity benefit, a
process that the government began rolling
out in April, and quoted the figures as further
justification of the need for change in the
welfare system.
The Minister said, “We now know very
clearly that the vast majority of new claimants
for sickness benefits are in fact able to
return to work. That’s why we are turning
our attention to existing claimants, who were
simply abandoned on benefits. That’s why we
are reassessing all of those claimants, and
launching the work programme to provide
specialist back to work support.”
Improving customer serviceAgainst a backdrop of local government
spending cuts and waning consumer
confidence, investment in customer service
must be weighed against tangible results –
however essential it is considered.
To discover how such investment can
deliver compelling returns, the Institute of Customer Service set out to ascertain which
aspects of an organisation’s offering should
be measured and why. It formed the basis of
a study, ‘Return on Investment in Customer
Service – The Bottom Line Report.’
The report was produced using the following
quantitative and qualitative data:
a survey of 153 senior executives in •
UK–based organisations
23 case studies from the public, private •
and third sectors that demonstrate how
organisations are working to achieve a return
on investment in customer service
a literature review of academic and •
practitioner articles.
The research is aimed at anyone who is
involved in:
making a case for customer service as a •
strategic driver
finding ways of achieving some form of •
return on investment in customer service
measuring customer satisfaction, •
sentiment and other more intangible
customer measurements
measuring return on investment.•
As well as underpinning expectations that
customer service contributes to the success
of organisations, and strong customer
relationships are crucial for success and
profitability, the research found that
organisations believe that there is a link
between investing in service and achieving
some form of return on investment (ROI).
More often than not it is investment in
more complex, harder to define activities
such as empowering staff and gaining an
understanding of the customer viewpoint, that
bring the best returns, rather than ‘harder’ cost
cutting activities such as moving the contact
centre offshore.
Similarly, the research concludes that some
harder to measure goals — such as establishing
trust, loyalty and some form of emotional
connection with customers — bring the highest
returns. The list is as follows:
front-line staff play a critical role in forging •
close customer relationships
customer satisfaction is a reliable indicator of •
business performance
81% of respondents believe that gaining •
an understanding from a customer
viewpoint is very likely to lead to an ROI
in customer service
more complex people-driven concepts such •
as ‘culture of service quality’ and the ‘whole
customer experience’ are expected to be
much more important in the future
the public sector sees ‘having a culture of •
service quality’ as its future top priority
47.3% of respondents say off-shoring/•
outsourcing is unlikely to lead to ROI in
customer service
interaction between front line staff and •
customers is a key activity leading to ROI
right staff with the right ‘inborn’ attitude to •
customer service is a major contributor
empowering staff to make decisions •
delivers increased value for both customers
and the organisation
customer satisfaction is easy to measure and •
the dominant metric among service providers
customer service is beginning to play an •
increasingly strategic role in organisations.
The good news from this report is that
satisfaction with public services is currently
high. At the beginning of this year, the ICS
published the results of their latest UK Customer Satisfaction Index (UKCSI), a
survey of 26,000 consumers. While customer
satisfaction across the board had risen
slightly, the results for locally delivered public
services, including the police, local authorities,
ambulance and fire services, showed above
average increases.
However, the UKCSI also identified deep
concerns among consumers over the future
quality, responsiveness and accessibility of
public services in the wake of spending cuts.
And finally......Secretary of State for Communities,
Eric Pickles, has been voted the winner of
Friends of the Earth’s Talking Rubbish Award over his hyped-up claims that people
are terrified of the ‘bin police’. He was
presented with his award outside Parliament
on 19 April. I can’t help but think that this
is the most deserved award that has been
given in recent years, and Pickles has got the
recognition he deserves!
40
INSIGHT
ww
w.ir
rv.n
et
Viewpoint
many would suggest unwieldy computer
systems, were heavily criticised by MPs for
their fundamental failures and even more
worrying their inability to accurately calculate
claims for Tax and Pension Credits. Now
they are the centrepieces of the government
introduction of Universal Credit.
In January 2010, the Chartered Institute
of Taxation reported that the introduction of
new Pay As You Earn computer systems at
HMRC means that many people had been sent
incorrect tax codes.
When mistakes happen, it appears that
taxpayers will usually pay more tax than they
should, unless they themselves spot the error
and contact HMRC.
The Institute said that HMRC was issuing
around 25 million tax coding notices last year,
double the number issued the previous year, and
“a significant proportion of these are wrong”.
In November 2010 a report by the National
Audit Office (NAO) found that due to DWP
processing errors, in 2009-10 the department
overpaid an estimated £1.1 billion and made
underpayments of £500 million. It also
reported that many of the computer systems at
the DWP were “relatively old and standalone”.
This meant they were difficult to update and
data was not readily accessible between the
different systems.
In March 2011, just two years before
the commencement of the introduction of
Universal Credit, the Public Accounts Select
Committee criticised the DWP’s computer
systems over £3bn erroneous benefits
payments made between 2009 and 2010.
The report revealed that £2.2bn of
overpayments and £1.3bn of underpayments
were made in 2009-10 as a result of
administrative errors by its staff and mistakes
made by claimants. The report identifies a
dire failure of the DWP computer systems to
support users. “The IT systems have not been
designed from the perspective of the user”,
said the report.
Universal Credit built upon aging technology...
would you fly in it?Despite having signed the Official Secrets
Act I can reveal to you, providing you keep
it between us, that when building
sophisticated military hardware, such as
aircraft or nuclear powered submarines, one of
the crucial components to ensuring that they
function as one would wish at high altitudes
or indeed on the ocean bed is a damn good
computer system.
In fact, best technological practice these
days is to install duplicate computer systems
running alongside each other, which are
designed to provide reliable and fail-safe work
environments. You will have heard of dual
processing power, dual memory and dual back-
up facilities. These are common components
embedded in many computer systems, as well
as critical information systems.
Whilst I would not expect the new Universal Credit system to be installed on any military
computer system or run from one of our
nuclear powered submarine’s spare servers,
our current and future claimants have a right to
reasonably expect to have access to a reliable,
secure, sophisticated and fail-safe system that
has been purposely designed to meet their
financial needs on a day to day basis.
It ’s worth noting that between the
Department for Work and Pensions [DWP]
and HM Revenue and Customs [HMRC] under
Universal Credit there will be very few within
the adult population of the United Kingdom
that do not, at some point in their lives, come
into contact with and be reliant on either one
or both of these big beasts.
So as we commence the building of our
new Universal Credit system, how reassuring
it is for us to know that the two key computer
systems supporting the take-off of our
Universal Credit spacecraft in 2013 are the
current DWP and HMRC’s computer systems...
”Oh my God!” and “I Don’t Believe It” are
idioms that comes to mind.
It is ironic that within a period of a few
months both of these huge centralised, and
The Committee said the Department needs
to “step up its performance significantly” as
it lacks a “clear plan of action” to achieve
the target of a 25% reduction in the cost of
overpayments from fraud and error by 2015.
Collectively over a period of 18 months both
of these obdurate, outdated and cumbersome
computer systems cost the taxpayer an
estimated £4.4bn. That by any stretch of one’s
imagination is an awful lot of money. In fact
it ’s more than Iain Duncan Smith secured
from the Treasury when seeking to introduce
Universal Credit.
Yet it is these publicly discredited computer
systems that have been chosen, we are not
sure by whom to be used side by side in the
build of the new Universal Credit.
Whilst it can be argued that the effects of a
serious computer malfunction or data inaccuracy
at high altitude or on the seabed could have
real life threatening consequences, there is a
similar correlation for such malfunctions in the
administration of welfare benefits.
Failure of any computer system within a
modern social environment causes many
people unwarranted hardship, anxiety and
grief, especially when they are relying on them
to provide financial support.
One of the greatest successes and
achievements of many local authorities over
the last ten years or so has been their ability to
ensure a very high standard, with the accuracy
and speed in the processing of housing and
council tax benefits ably supported by an array
of well developed computer systems.
I know that at a local level if any Head of
Service or Senior Manager had been so heavily
criticised by their elected Members for the
scale of such inaccuracies, financial losses and
system failures recently directed towards both
the DWP and HMRC, they would rightly be
expected to seek alternative employment.
We have to accept the fact that Universal
Credit are going to be the new way in which
a variety of welfare financial support is going
asks John Frost
John Frost is Head of Revenue and Benefit
Services at Cambridge City Council and also
the Chair of the national Northgate Benefit
User Group
INSIGHT
JUN
E 2
011
41
Viewpoint
to be administered and distributed to those
claiming tax/welfare credits, and that we as
professionals at the local level have a huge
responsibility and key role to play in ensuring
the smooth transition from the current system
to the new more centralised system.
The problem we have at the moment is
not so much around the concept of Universal
Credit. Elements do make sense. Or the fact
that it seems to be contrary to the idea of the
wider localism agenda, i.e. local services for
local people delivered at a local level. It ’s
the thought that Universal Credit are set to
be delivered by what seem to be failing
computer systems.
The thought of migrating our claimants to
systems that have been publicly vilified by the
Public Accounts Committee as not being fit
for purpose has to be a real worry for many
local authorities.
For almost ten years the BFI, the active
service wing of the DWP, exerted considerable
and, at times, iniquitous pressure on local
authorities to ensure that they administer
housing and council tax benefits to very high
standards and there can be no denying that
their intervention, whilst unwelcome, did make
a difference.
I believe that as we move towards
supporting the DWP through this transitional
period with the introduction of Universal
Credit we should, on behalf of our claimants,
be demanding tangible assurances and
evidence from the DWP and HMRC that their
systems are up to the job and fit for purpose.
We are informed by the DWP that no-one
will be worse off financially as they transfer
from the current system to the new Universal
Credit. That may be the case, but if they are
not getting the financial support they require
when it is required without having to cope
with significant inaccuracies in calculations,
delayed or incorrect payments or inordinate
amounts of time spent online or shouting
down the phone, then they will be much
worse off.
It may be that claimants will not be worse
off under the new system. However, the
question for us is will our local customers
and community get the same standards of
service that they currently enjoy via their
local authorities. Regretfully the answer is
probably no and who will they come to when
things go wrong?
My fear is that despite the DWP’s,
HMRC’s and now Communities and Local
Government’s best efforts in moving forward
with the welfare reform agenda, there
is a blind optimism, albeit misguided, that
between them it will all come together.
The truth is that the current information
systems being used by both the DWP and
HMRC are not fit for purpose. If any local
authority had been subjected to such damning
open public criticism of their computer
systems from their elected Members, a new
computer system would already be on order.
If Universal Credit are to succeed, the
IT infrastructure that it will eventually be
operated from will need to be of a more
superior, robust and technically sound
standard than what is currently in place within
the DWP and HMRC.
We are building a new system, Universal
Credit, using archaic and discredited computer
technology. Agreed, the consequences of
failure are not so dramatic as they would be
for those flying at high altitude or cruising the
ocean bed.
However, the social and financial fallout
that may occur due to the failings of the
computer technology supporting Universal
Credit will have far reaching and damaging
consequences, which can be avoided by
ensuring that the new system of Universal
Credit is built upon sound, reliable, accurate
and responsive computer technology. At the
moment that technology does not exist within
the DWP or HMRC.
Universal Credit on its own will not be the
panacea to all; new technology offers perhaps
the greatest opportunities – and the greatest
risks. There can be unrealistic expectations
that new IT will cure all of the weaknesses in
any system. But worse is the use of outdated
IT, providing poor response times and access,
unreliable and inaccurate services and
inflexible outputs.
At the moment of transition, I am tempted
to hold onto our data until we have robust
assurances from both the DWP and HMRC
that their respective systems are fit for
purpose and that our claimants when
transferring over to Universal Credit will as
an absolute minimum receive the same high
standards of service that we are currently and
will continue to provide.
IRRV Annual Conference & Exhibition 2011
Telford InternationalCentre 21-23 September
Go to www.irrv.net
IRRV Annual Conference & Exhibition 2011
Telford International Centre 21-23 September
Go to www.irrv.net
42
INSI
GH
T w
ww
.irrv
.net
The office can be a dangerous place.
Professional jealousies, fears of redundancy, rivalries in love and
dodgy expense claims make for a potentially lethal mix in Insight’s
monthly serial.
The story so far : - EMMA BARNABY, Benefit Fraud Team Leader, has found that poisoning victim Peter Rungeley had been collecting incriminating information about several Midsomer DC personnel.
Episode 7: A controversial solution
Early evening. EMMA BARNABY is on the phone in her office. Everyone else has gone home. EMMA ...Inspector Clooney... No,
nothing that exactly helps with the Rungeley attack... I just wondered what was the result of the analysis of the glass of water Mr Rungeley drank? ...Well, surely there’s no harm in telling me... Right... How do you spell that?... (She writes a note). I see. Thank you Inspector.
She puts the note in her pocket, picks up her coat and goes home.
Next morning, 8.00 am. TONY FRENCH’s office. EMMA enters with two cups of coffee. TONY has a black eye and a cross expression.
EMMA I thought you’d be in early.TONY So much to do. EMMA Tony, I have Rungeley’s
memory stick.TONY Who took it? EMMA Dominic. He swiped it from
your desk in all the confusion after he threw the IRRV Insights at us. Why did you conceal it?
TONY You can see why! You must have read his files. A collection of trivia and gossip about all of us. Mind you, Dominic’s lies are pretty serious.
EMMA Rungeley thought your expenses claims from IRRV
Annual Conference were pretty serious.
TONY No-one has ever challenged my expenses claims before!
EMMA He was querying why you needed to claim for three ‘health treatments’. Which turned out to be massage and reflexology sessions in the hotel’s Tropical Islands spa…
TONY That’s on medical advice! For my irritable bowel syndrome...
EMMA It doesn’t look good.TONY That’s what he said. He
was calling it fraud. We’re only talking about a few hundred pounds. Thank goodness he... wait a minute Emma – I didn’t try to kill him!
EMMA No. I know.
(She looks out of the window and sees a car pulling into the car park).
EMMA Here’s someone I want to talk to.
She exits and goes over to see GEORGIA HEMMING, Head of Revenues and Benefits, as GEORGIA, slightly out of breath, reaches her office..
GEORGIA I’m taking the stairs every day now.
EMMA Georgia. I need to ask you about OrliLoss.
GEORGIA Oh. Must you?EMMA It’s not on prescription
in the UK.GEORGIA You get it on the internet.
How did you know?EMMA Clooney said the glass of
water contained a solution of
Orlistat, which, I discovered, is the main constituent of a controversial slimming drug. I thought you might have tried it.
GEORGIA I’ll try anything. But Emma, the side effects, I can’t tell you – it was horrendous! It was... well. Let’s just say it involved leakage...
EMMA So you administered some to our auditor.
GEORGIA I wasn’t trying to kill him! I had no idea he’d be allergic to it. I just thought, he’d have a very nasty few days. And serve him right! I couldn’t stand the way he went round the office saying he was going to “trim the fat” and looking straight at me. So I thought..
EMMA You’d give him a taste of his own medicine. Why did you spell it wrong?
GEORGIA Oh, gosh, I don’t know! I was in a hurry! (Sighs) Do we have to tell the police? We could say it was an accident. Which it was, really.
We could say you left the OrliLoss by mistake in your office...
EMMA Me! GEORGIA It was your office. EMMA I don’t need slimming drugs!GEORGIA Well...
TONY FRENCH enters.
TONY Detective Inspector Clooney’s in reception. What are we going to tell him?
EMMA and GEORGIA Er...
The end!
Kate Miller is a freelance writer and former editor
of IRRV Magazines
EPISODE 7 – A controversial solution
Kate Miller’s coluMn
You’ll be surprised what we find under one roof.
Introducing Datatank Profiler – a suite of fraud detection and investigation solutions designed specifically for local government. Using the latest technology, we can profile and investigate
your customers’ SPD, social housing and other benefit claims, and council tax arrears. With our market-leading expertise, we can help you save time and generate additional revenue.
To find out more about Datatank Profiler products, call 0845 643 2143 or visit datatank.co.uk
Cert No. 9254ISO 27001, ISO 9001