Our study identified a number of enablers that could help improvement in the collection of local tax. The following characteristics and behaviours were found in councils that had achieved improvement in their collection of incomes:
An awareness of cost and management arrangements
Organisations need to be able to demonstrate the value of their existing payment arrangements. On average, well over 95 per cent of council tax is collected within the year it is billed. About 53 per cent (estimates vary) of this is collected by DD. Each method of payment has a different cost and councils need to be able to demonstrate that they are achieving value for money in this area. A clear benchmark for calculating DD would help councils and housing associations to compare their performance and maximise learning. The study found that some councils were not able to supply us with a detailed breakdown of their transactional costs. Nevertheless, we did find that some councils have tried hard to break down all the associated costs of transactions.
An open approach to cash cash office provision
Our study has identified many features of a positive approach to change. But there are barriers to overcome. Good information on low take-up will help overcome some of them, but councils and HAs also need to focus on the needs of customers - and how DD can support people in a variety of situations. It will not work for everyone. Society is tending to move away from a cash culture. This presents particular challenges to councils where local people see the 'cash office' as a key point of contact. Our report has identified examples where councils have achieved the right balance when closing offices by giving people something back, such as a one-stop-shop, or other ways to pay their council tax or rent.
A readiness to adopt innovative approaches to collecting income
Councils are facing difficult challenges to improve efficiency. We have identified examples where councils in very deprived areas have used improved DD to release resources to give more time for more complex problems. A co-ordinated approach is needed. Housing and finance departments need to work together - and with housing associations - to ensure that their services are complementing each other in the interest of customers. But councils can do more for themselves, by working with others through joint campaigns and sharing ideas.
An awareness of efficiency in housing
Most of the general principles on direct debit described in this report apply equally to housing rent collection. We found that those councils with higher DD rates were more aware of the advantages of DD. There was greater awareness of how it can save time in administration, and as a result councils were actively trying to improve it. Performance management systems included this as a supplementary measure for rent collection.
To see if you are utilising these enablers effectively, a complete set of checklists featured in this tool is available to download: