New debt policy agreed to ensure fairness

Councillors have agreed to update our Corporate Debt Management Policy in line with latest research evidence and best practice to make sure we continue to collect public debt in a fair and ethical way.

The council has a responsibility to collect income and recover debt efficiently. Each year, the council collects more than £500 million in council tax, rents and other fees and charges; these help to pay for key local services for residents, as well as police and fire services.

Poor collection policies and performance can therefore have a significant impact our ability to deliver these services.

Corporate Debt Management Policy 

The Corporate Debt Management Policy outlines our ethical approach to income collection and debt recovery – so that we can minimise debt and maximise collection rates. 

For a number of years, our debt management policy has included a commitment to never use enforcement agents to pursue debt from residents who have been identified as facing financial hardship – and the updated policy aims to improve on this.

Agreed changes

Councillors agreed a series of changes to the Corporate Debt Management Policy at the Cabinet meeting on Thursday 20 March. These include:

• Ensuring that in-house and external debt collection practices include processes to identify hardship or vulnerabilities at the earliest possible stage
• Reconfiguring signposting and advice so hardship and vulnerability can be appropriately supported
• Using new technologies to gather and analyse data so appropriate action and support can be put in place
• Assessing the viability of new payment methods
• Sharing information across debt hubs to provide more holistic support and consideration of multiple debt, subject to data protection limitations

Ethical approach 

Councillor Jacob Allen, Cabinet member for Adult Social Care, Public Health and Service Transformation, said: “I’m very proud that we’ve agreed this new policy, which not only sets out our approach to collecting public funds but also reflects our commitment to fairness and social responsibility. 

“A key part is to prioritise residents’ welfare and support customers facing financial difficulty, and we can improve that by better understanding household circumstances, assess the ability to repay debt and identify benefit entitlements.

“As well as supporting vulnerable households, early intervention will enable us to establish sustainable repayment plans.

“With this policy, Brighton & Hove is setting a high bar. We are proud that this will be one of the most progressive and ethical corporate debt policies in the country – combining robust financial management with compassion and care for our community.”

The Corporate Debt Management Policy is reviewed annually; the new policy will be in place from 1 April.