The Rents Team Manager introduced the report.  The Housing Panel noted that the overall rent collection rate was above target as of 31 October 2015.  However, the total arrears of tenants owing more than 7 weeks rent was over target.  The Rents Team Manager advised that these arrears had increased the previous autumn and had remained over target since.  The Panel received assurances that officers were in contact with these tenants and that total arrears of tenants owing more than 7 weeks rent were no longer increasing.  The Rents Team Manager advised that a new piece of software called RentSense had been procured which would track payment patterns and enable the Rents Team to target its resources more effectively, based on more up to date information.  The Council was the first local authority to implement this software.  It went live in mid-November and the results would be seen in the next 2-3 months. 

The Panel noted that the Council was procuring a new debt collection agency contract and questioned why this function was being outsourced and what controls the Council would have over debt collection.  The Rents Team Manager advised that two agents would be responsible for collecting all Council debts where Council officers had been unsuccessful.  The two agencies would be incentivised to compete with each other and their staff would be well trained and would wear cameras.

The Panel questioned what the Rents Team was doing to promote payment by Direct Debit.  The Rents Team Manager advised that current take up was 40% but this figure would rise to 50-60% if tenants in receipt of full housing benefit were excluded.  The Panel heard that the Council does promote payment by Direct Debit to tenants but cannot insist on it.  The Panel suggested that the Council should explore options for incentivising Direct Debit and that one option should be to enter these tenants into a prize draw.  The Panel also suggested that the Council should set targets around increasing Direct Debit take up, noting that any targets should be exclusive of those tenants in receipt of full housing benefit.

The Panel also asked questions about the impacts of welfare reforms.  The Rents Team Manager advised that the Council had been part of a Universal Credit pilot project which had enabled it to be ahead of the game compared to many other local authorities.  The Council had also applied to be a trusted partner of the Department for Work and Pensions.

The Panel resolved to:

1.    Request the procurement documentation relating to external debt collection agencies;

2.    Continue to monitor rents performance;

3.    Make two recommendations to the City Executive Board:

                      I.        That the Council should look at ways of incentivising Council tenants to pay rent by Direct Debit, including the option of holding a prize draw;

                    II.        That the proportion of eligible Council tenants paying rent by Direct Debit should be a performance indicator in future years.