delivering promises, improving lives learning from the experiences of a direct payment demonstration...

delivering promises, improving lives

Learning from the experiences of a Direct

Payment Demonstration Project area

Rachel WilloughbyWelfare Development Manager


The Direct PaymentDemonstration Project

• Six project areas with different characteristics and make up.

• Runs from June 2012, extended to December 2013.

• Independent external research ongoing through CRESR at Sheffield Hallam University and IPSOS/MORI.

• To inform policy and shape the way that payments are delivered.


Where is Wakefield?


Wakefield in context

• 24% of households on edge of poverty

• 12.5% of population in 10% most deprived areas nationally

• Unemployment is 4.6%, higher than the national average


WDH’s Income Profile

• £54m – Pensioners

• £75m – Working Age Tenants

- £30m – Low Income Household

- £45m – Housing Benefit

£129m – Annual Rent


Reasons for participating in theDirect Payment Demonstration

Project• To learn the impact on claimants and factors

affecting payment.

• To understand the best and most effective forms of support to help individuals to manage income and pay their rent.

• To have influence on decisions about those clients who need additional support.


Tenants in payment• Over 50% use Direct Debit to

pay all or part of their charges• Significant levels of contact to

prompt payment from some tenants.

• Multiple transactions within each four week period so increased costs.

• Less than 20% had internet access.


Working with credit unions

• Partnership with White Rose Credit Union who have developed a budgeting account.

• Sixty tenants have this type of account and seventeen receiving direct payment.

• Promotion of Credit Union product.


Responsibilities!

Cleared

utility bills

Banks

paid debt

s

Had a

bereavem

ent

Cash machine limited withdrawal

Paid Vet bills

Bought

school

unifor

ms

Didn’t

know

money

had gone

into

account

Paid a fine


Outcomes

• Notices of Seeking Possession served but no Court action solely as a result of the project.

• 229 cases have had payment reverted to WDH.

• 92% of these have been due to percentage underpayment.

• Payment rates average 94% and vary from 91% to 97% across all project areas.


Challenges• Changing behaviour and attitudes - employees

and tenants.

• Reviewing policies and processes.

• ‘Sanctions’ for other debts and methods of recovery.

• Demand for and support to advice services.

• Data sharing with DWP and others.

• Wider welfare reforms.


Solutions• Structuring teams for effective debt recovery.

• Cultural shift and employee training.

• Flexible methods of collection, 24/7 access and automated payments.

• Budgeting accounts and accessing banking products.

• Increasing knowledge about customers and working around critical dates.

• Continue to plan and analyse the business impacts.


£3,000,000

£3,500,000

£4,000,000

£4,500,000

£5,000,000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar2011/12 2012/13 2013/14

Projected Debt…!


Viability


Mentoring

Community Leadership

ApprenticesSchoolEnterprise

Employment Advisors

WorkExperience

Dot.Com Shops

Race Online

AcademyFencing

and GatesCommunity

Learning ProgrammeHealth Inequality

WorkersCash Wise

Tenant DiscountScheme

delivering promises, improving lives learning from the experiences of a direct payment demonstration...

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