Issue - meetings

The Cabinet Member for Finance, Performance and Core Services introduced the performance report for the final quarter 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, including the debt write-offs for the quarter.

The Cabinet Member advised that collection targets had been achieved or surpassed in most areas during 2019/20, with only leaseholder income showing a significant under-achievement, although on a positive note the actual sums collected across each area was higher in 2019/20 than in previous years.

The Cabinet Member reiterated his comments earlier in the meeting that the COVID-19 pandemic was having a considerable impact on many people’s ability to pay all of their bills and, as a result, collection levels were expected to be impacted quite considerably during 2020/21 despite the Council continuing to do a significant amount to support those in debt.  He also referred to the negative impact of the Government’s Universal Credit scheme which had already proved itself to be a major issue in the collection of both rents and Council Tax, which was exemplified in table 7 of the report which showed that over 60% of those in receipt of Universal Credit were in arrears, compared to less than 22% of those in receipt of Housing Benefit.  

Cabinet Members discussed issues relating to the impact on household incomes of residents being made redundant or furloughed as a consequence of the COVID-19 restrictions and the struggles that those on low incomes have in making ends meet. 

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; and

(ii)  Note the emerging impact of Universal Credit on collection levels and particularly Council Tax and rents.