In 1998/99 the number of housing rent transactions taken at Housing Offices in Hull was over 600,000 and in 2004/2005 this had reduced to less than 500,000 - the offices also take payments for council tax. This has since decreased further. Since the introduction of the swipe card in June 2004 fewer payments are being made through the housing offices. However, there are still relatively low numbers of tenants that pay via the bank.
The council therefore developed a marketing strategy to improve the situation and move to more efficient collection by direct debit. It invested £25,000 in its campaign and achieved savings of over twice that amount with improved direct debit take-up. Its campaign included the use of eye-catching posters to promote direct debit (above)
The council reported increases in direct debit rates by over four per cent as a result of its campaign. It has also started a closure of its cash offices with three of the 18 so far closed.
Housing and council tax services have worked closely together and direct debit campaigns have brought significant results for council tax too. Numbers increased from 35,500 to 38,000 in 04/05 and have now climbed to 42,000 by January 06. Now over 50 per cent of paying council tax payers pay by direct debit. Collection rates are improving and an increase of at least two per cent in collection is forecast for the 31 March 2006. Whilst other recovery measures will have played a part in increasing collection, there is no doubt in the minds of Hull staff that year on year increased DD numbers have played a significant part in the success story.
A download of a front cover of an information pack (PDF, 553KB) (new window) produced by Hull is available.