Issue - meetings

The Cabinet Member for Finance, Performance and Core Services introduced a report on Debt Management Performance and Write-Offs for Quarter 1 of the 2019/20 financial year in respect of the debt management functions carried out on behalf of the Council by the Revenues and Benefits service within Elevate East London.

Members noted that of the seven key debt collection targets, four had been exceeded, and three relating to council tax, leasehold income and commercial rent were slightly below target. 

The Cabinet Member referred to the statistics in the report that 67% of those on Universal Credit were in rent arrears and that the amount payable in council tax by those claiming Universal Credit would increase to £1.7m by the end of 19/20, with the gap in the collection rate continuing to widen to approximately 10%. He stated that whilst Council services did all they could to support residents out of debt, the reality was that more people would become vulnerable as a result of the Government’s welfare policies.

Cabinet resolved to:

(i)  Note the performance of the debt management function carried out by the Revenues and Benefits service operated by Elevate East London, including the performance of enforcement agents;

(ii)  Note the debt write-offs for the first quarter of 2019/20; and

(iii)   Note the emerging impact of Universal Credit on collection levels, most notably, Council Tax and Rents.