delivering promises, improving lives Learning from the experiences of a Direct Payment Demonstration Project area Rachel Willoughby Welfare Development Manager

delivering promises, improving lives The Direct Payment Demonstration Project Six project areas with different characteristics and make up. Runs from June 2012, extended to December Independent external research ongoing through CRESR at Sheffield Hallam University and IPSOS/MORI. To inform policy and shape the way that payments are delivered.

delivering promises, improving lives Where is Wakefield?

delivering promises, improving lives 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

delivering promises, improving lives WDH’s Income Profile £54m – Pensioners £75m – Working Age Tenants - £30m – Low Income Household - £45m – Housing Benefit £129m – Annual Rent

delivering promises, improving lives Reasons for participating in the Direct 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.

delivering promises, improving lives 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.

delivering promises, improving lives 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.

delivering promises, improving lives Responsibilities! Cleared utility bills Banks paid debts Had a bereavement Cash machine limited withdrawal Paid Vet bills Bought school uniforms Didn’t know money had gone into account Paid a fine

delivering promises, improving lives 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.

delivering promises, improving lives 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.

delivering promises, improving lives 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.

delivering promises, improving lives £3,000,000 £3,500,000 £4,000,000 £4,500,000 £5,000,000 AprMayJunJulAugSepOctNovDecJanFebMar 2011/ /132013/14 Projected Debt…!

delivering promises, improving lives Viability

delivering promises, improving lives Mentoring Community Leadership Apprentices School Enterprise Employment Advisors Work Experience Dot.Com Shops Race Online Academy Fencing and Gates Community Learning Programme Health Inequality Workers Cash Wise Tenant Discount Scheme