Vision
The council’s vision is to have a best-in-class debt recovery team and processes to ensure the council maximises income, collecting debt promptly and effectively while ensuring fair and equitable treatment of our customers.
Introduction
Developing a high-level debt recovery strategy for Norwich City Council across all service areas involves balancing effective recovery practices with fairness, transparency, and support for vulnerable residents.
The strategy is underpinned by the council’s new Corporate Debt Policy and Vulnerability Framework. Both these documents outline the key objectives and guiding principles to ensure consistent and effective debt management across all council services.
Service areas also have specific policies such as the Council Tax Hardship Policy and the Business Rates Discretionary Relief Policy which support residents and businesses with debt and income maximisation.
The strategy will be in place for a period of 3 years and reviewed annually.
Strategic objectives
- Maximise Debt Recovery: Ensure timely and efficient collection of all outstanding debts across service areas.
- Promote Financial Inclusion: Provide support mechanisms for individuals in financial hardship.
- Safeguard Public Resources: Minimise bad debt write-offs and protect public funds to sustain essential services.
- Enhance Public Trust: Ensure the process is transparent, equitable, and compliant with relevant regulations and standards.
Governance and policy framework
- Unified Corporate Debt Management Policy: A single, overarching policy to govern debt recovery across all service areas (e.g., council tax, business rates, housing and sundry income).
- Statutory Compliance: Ensure adherence to relevant legislation and guidance, such as the Local Government Finance Act 1992 and the Debt Respite Scheme (“Breathing Space”).
- Clear Accountability: Defined roles and responsibilities across teams to avoid duplication and inefficiencies.
Proactive debt prevention
- Early Intervention: Implement systems to identify at-risk accounts early and engage with debtors proactively.
- Payment Flexibility: Offer tailored payment plans using various payment methods.
- Financial Literacy Support: Collaborate with advice agencies to provide financial education and budgeting support.
Data-driven approach
- Integrated Systems: Use data analytics to understand and consolidate debts across services and create a single view of each debtor.
- Risk Segmentation: Categorise debtors based on payment history, vulnerability, and risk to prioritise actions.
- Performance Monitoring: Establish KPIs such as recovery rates, aged debt levels, and cost-to-collect ratios to measure effectiveness.
Streamlined debt recovery processes
- Standardised Procedures: Develop consistent recovery workflows for all service areas to ensure efficiency and fairness.
- Digital Engagement: Use online portals, SMS reminders, and email notifications to encourage self-service and prompt payments.
- Escalation Protocols: Define clear escalation pathways (e.g., reminders, final notices, enforcement action) that allow for discretion in handling vulnerable cases.
Ethical enforcement practices
Support for Vulnerable Residents:
- Implement safeguards for those experiencing financial hardship, guided by vulnerability assessments.
- Offer access to third-party debt advice services.
- Proportional Action: Ensure enforcement measures (e.g., court summons, enforcement action) are a last resort and proportional to the debt owed.
- Collaborative Approach: Contract with enforcement agencies that align with the council’s values and adhere to ethical recovery standards.
Cross-department collaboration
- Service Integration: Foster collaboration between departments (e.g., housing, revenues, accounts receivable) to share insights and coordinate recovery efforts.
- Corporate Debt Teams: Establish or empower dedicated debt recovery teams to ensure a holistic approach.
Engagement with sakeholders
- Public Communication: Clearly communicate debt recovery policies and payment options to residents and businesses.
- Local Partnerships: Work with advice agency partners, Charities, Housing Associations, and Community groups to provide additional support.
- Business Collaboration: Engage with local businesses and relevant business forums to promote compliance with business rates and other obligations.
Use of technology and innovation
- Automation: Leverage technology to automate routine tasks, such as issuing reminders and reconciling payments.
- Predictive Analytics: Use data models to predict payment likelihood and target interventions effectively.
- Digital Payment Channels: Expand digital options and portals for easier payment.
Regular review and continuous improvement
- Policy Updates: Review and adapt the debt recovery strategy to reflect legislative changes and best practices.
- Feedback Mechanisms: Gather insights from residents, businesses, staff and enforcement partners to improve processes.
- Performance Evaluation: Conduct annual reviews of recovery performance and identify areas for improvement.
Outcome focus
A robust Corporate Debt Strategy will ensure:
- Efficient collection of outstanding debts, preserving resources for delivering public services.
- Fair and compassionate treatment of residents and businesses.
- A sustainable financial position for the local authority.
