Question
As Councillors may be aware robust evidence is emerging that the use of bailiffs to collect Council Tax arrears produces less revenue than other methods, such as signposting residents to local debt advice organisations. Has the Council been in contact with other Local Authorities for example Basingstoke and Deane, and Rushmoor, who have signed the LGA/CA CTP in order to understand their experiences and how they have benefited from this?
Minutes:
As Councillors may be aware, robust evidence is emerging that the use of bailiffs to collect CT arrears produces less revenue than other methods, such as signposting residents to local debt advice organisations. Has the Council been in contact with other Local Authorities for example Basingstoke and Deane, and Rushmoor, who have signed the LGA/CA CTP in order to understand their experiences and how they have benefited from this?
Answer
The Income service communicates regularly with other Local Authorities to discuss working practices. Each Local Authority adopts its own strategies and principles when it comes to collection of Council Tax arrears. However, there are ‘best practice’ synergies in respect of recovery action such as:
· Deferring payment plans;
· Close working relationships with voluntary and charitable sectors;
· Reviewing customers affordability to instalment plans;
· Working with the vulnerable and/or those in financial difficulty to ensure affordability;
· Debt advice agencies used where it is seen that customers have multiple debts, it is a positive that these are independent of the Council;
· Being honest and transparent about the next steps in debt recovery, customer centred approaches.
These practices will hold Wokingham Borough Council in good stead as we come out of Covid.
I can confirm we have robust processes and procedures based on meeting Council Tax legislation. Wokingham Borough Council works with those in arrears to agree affordable and sustainable repayment plans, taking into account personal circumstances. The notices sent out about Council Tax are in plain English and they clearly explain the collection process. We encourage customers to seek debt advice if they are experiencing financial difficultly.
Over the last year, the Service Manager has introduced ‘surgery’ days (every two months or so) where customers can come and talk to staff from Wokingham Borough Council and the Wokingham Citizens Advice Bureau to prevent unnecessary action – it is about reducing customers’ stress and anxiety in relation to their Council Tax liability and in some cases acting earlier on in the recovery process to reduce or even mitigate additional recovery costs.
We only use Enforcement Agents as a last resort and, again, they are governed by legislation as well as our own internal arrangements which they adhere to. Where residents who are in receipt of Council Tax Reduction fail to act on notices sent and where other methods of collection cannot be taken, such as applying deductions from earnings or state benefit, it is necessary for us to use Enforcement Agents in these cases. If information subsequently comes to light to show that a resident is vulnerable or in financial difficulty, the Enforcement Agent will always take this into consideration when managing the case. Protection for vulnerable residents is built into the law on enforcement of debt.
What we do need to consider is that the less we collect in taxes the bigger impact it will have on our local services and budgets.
Supplementary Question
I am pleased to hear that you are keen to reduce customer stress and anxiety and are aware of the importance of early action. Are the Council aware of the link between indebtedness and poor mental health? If so, what action do they intend to take to address this?
Supplementary Answer
Yes, we are. Any time that we feel there is an issue regarding mental health, or a history of mental health issues, that is taken fully into consideration.