Working through…Working through…Income protection and Income protection and

financial inclusionfinancial inclusion

Paul O’Connor

Income and Inclusion Specialist

Chartered Institute of Housing

Format for this sessionFormat for this session

Update on financial inclusion – policy and latest developments Testway Housing – firm but fair approach to income management Working through – considering your approach to financial inclusion and

income management Q and A Conclusions

What is Financial InclusionWhat is Financial Inclusion

“Financial Inclusion is where people have access to appropriate and affordable financial products and services, and have the skills and confidence to use them.”

Transact National Forum for Financial Inclusion.

The business case for financial inclusion and early The business case for financial inclusion and early interventionintervention

– Reduction rent arrears – Lowered eviction rates and court action proceedings – Lower tenancy abandonment – Less unrecoverable debt– Less time spent dealing with residents in crisis– Sustainable communities

Future developments - risksFuture developments - risks

Universal Credit and direct payments 2013

HB and under occupation 2013

Increase in HB non-dep deductions April 2011

Disability Benefits review – PIP

Incapacity Benefit changing

Greater emphasis on worklessness – work programmes

Advice agency funding – review

Future developments and supportFuture developments and support

£73 million DWP fund to develop and modernise Credit Unions new Money Advice Service – April 2011 Hyde research on impact of delivering debt advice Santander research on impact of financial capability CIH publication on promoting Home Contents Insurance BIG lottery - £30 million programme to support partnerships working to

reduce financial exclusion

How CIH can help…How CIH can help…

CIH have recently published ‘Improving financial inclusion and capability in social housing’ which is available free at:http://members.cih.org/bookshop/Catalogue.aspx

The Income and Inclusion Service at CIH provides an holistic service offering operational and strategic support to help improve income collection and tenants’ wellbeing. Please see:http://www.cih.org/incomeandinclusion/

CIH have developed a HB impact calculator so that you can accurately assess what impact the changes to housing benefit might have on your business. You can plan how to help your tenants and link this in to developing your financial inclusion work. Please visit the CIH stand or see:http://www.cih.org/housingbenefit/

Collecting the rent – Collecting the rent – Testway’s firm but fair Testway’s firm but fair

approachapproach

Elaine Curtis and Jill Field

Testway Housing

For our customers and for our businesses we want For our customers and for our businesses we want to to

Minimise rent arrears and bad debt Maximise income Improve our

– customer focus– individual & team performance

SupportSupport

Someone always available in office or on phone to discuss with our customers

Home visits (out of hours) offered Tenancy support offered even before tenancy starts and

throughout tenancy Referrals to other agencies who may assist Regular contact with CAB, local authority (Homeless &

Housing Benefit) Strong in house tenancy support team Regular attendance at court user group meetings

EducationEducation

Schools around budgeting and conducting a tenancy (12 to 14) Pre allocation visit Team Sign up – neighbourhood, income, local authority if necessary DVD Tone of voice Tenancy support

Start as you mean to go onStart as you mean to go on

2 weeks up front or no keys If you owe former tenant arrears – we decline Starter tenancies Escalation policy Simple colour coded letters (Diversity) Early intervention - £5.00 Notice at £30.00

ArrangementsArrangements

L1 (green letter) if arrear of £5.00 or more L2 (red letter) if arrear of £5.00 or more Visit / personal contact Notice / Section 21 NO ARRANGEMENT until a notice /S21 has been

served

Maximising incomeMaximising income

Any arrangement (if arrear is over £100.00) must be accompanied by financial statement

Escalation procedure identifies broken agreement and suggests next action

After notice / Section 21After notice / Section 21

If no arrangement or response, system suggests warn of county court action

Visit / telephone call / personal contact If arrear over £100.00 procedure states we can

consider issuing court papers

CourtCourt

Possession Claims on Line Accelerated possession claims The amount owing on hearing date determines the type of order we request We will request

– Adjournment on current rent plus

– Adjournment with liberty to restore

– Suspended possession

– Forthwith

Breach of court orderBreach of court order

System suggests next action Options

– Letter/ visit / telephone call / personal contact Change order – must make application to court to vary

unless postponed possession If breach continues we will seek authority to evict Neighbourhood officer and income recovery officer visit

property by appointment

We own and manage approximately 6000 properties Geographically we have properties in 7 local authority areas:

Basingstoke & Deane, Bournemouth, Fareham, Southampton, Test Valley, West Berkshire & Wiltshire

4 income recovery officers, 2 administrators and 1 manager We answer approximately 3500 telephone calls per month Responsible for recovery of rechargeable works orders,

sewerage charges, telecare charges (basically we chase any money owed to Testway)

Stats

Stats cont..Stats cont..

2005/6

2006/7

2007/8

2008/9

2009/10

2010/11

Notices

637

524

571

489

465

507

Court orders

191

245

196

129

80

120

Evictions

13 (33)

12 (41)

9 (23)

17 (43)

10 (29)

11 (30)

Stats cont…Stats cont…

Current tenant arrears as percentage of annual rent role

at 31 March 2006 – 1% 2007 – 0.93% 2008 – 1% 2009 – 1.04% 2010 – 1.02% 2011 – 1.3%

The tool boxThe tool box

Tool BoxTool Box

Other tools?Other tools?

Recognise causes Understand impact on business, customers & communities Strategy for financial inclusion Methods of prevention Practical tools e.g. campaigns; new IT system; targeting estates etc. Leadership/teamwork Best practice/benchmarking Personal & organisational effectiveness

““SuccessSuccess

“Is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals.”

Jim Rohn

Over to you…Over to you…For discussion in groups:

1. What does your organisation currently do in relation to financial inclusion and arrears prevention?

2. What information do you hold about your tenants circumstances – are you able to profile where the help is needed?

3. Do you plan to change anything within the way you collect income in light of the economic climate?

4. Questions for Elaine, Jill and Paul?

Contact details:Contact details:

Elaine Curtis – Policy and Performance Manager, Testway HousingTel: 01264 405686Email: Elaine.Curtis@testway.co.uk

Jill Field – Income Manager, Testway HousingTel: 01264 405555Email: Jill.Field@testway.co.uk

Paul O’Connor – Income and Inclusion Specialist, CIHTel: 07852354170Email: paul.oconnor@cih.org