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Income collection needs to update practices in lockdown

Another lockdown poses fresh challenges for income collection. Michael Lynch considers what worked last time, and what could be done better now

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Tenants will be under greater pressure right now (picture: Getty)
Tenants will be under greater pressure right now (picture: Getty)
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Income collection needs to update practices in lockdown, says Michael Lynch from @LBofHavering #UKhousing

The COVID-19 pandemic has necessitated that we change our approach to income collection. In a global crisis, the immediate instinct is to shift to a support-based model. But this can risk normalising rent arrears. Conversely, focusing on enforcement carries the risk of damage to our reputation and our relationships with our residents, who may be struggling in a changing world.

Income collection is a behavioural science, and now more than ever we must strike the correct dynamic balance between enforcement and support.

“In the first lockdown, some social landlords gave residents the option of a payment holiday. In my view, this is simply kicking the can down the road and can cause problems with benefit assessments”

Some residents can’t pay, and others won’t pay. We must identify who is who, and tailor our intervention accordingly. Where somebody can’t pay, either they have other debts and priority bills, or they’re not claiming everything they’re entitled to, or they need support budgeting. If a resident is willing to engage, we can help in all three of these scenarios.


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In the first lockdown, some social landlords gave residents the option of a payment holiday. In my view, this is simply kicking the can down the road and can cause problems with benefit assessments. Every resident, however, has the right to an affordable repayment arrangement. An arrangement should be time-bound and a review point set at which a new affordability exercise is carried out to avoid residents being in debt for longer than they need to.

Likewise, a court-mandated repayment instalment is a minimum and not the maximum a resident should be paying towards their debt. Again, these should be reviewed regularly and an application made to have the order varied where a resident’s circumstances differ greatly from the time the judgement was entered.

“COVID-19 has also given us no choice but to embrace digital transformation and innovation. Working from home has been revelatory, and does allow us to widen our talent pool”

With widespread financial hardship and the very real prospect of a double-dip recession looming, local authorities and social landlords have seen an exponential increase in the number of residents in receipt of Universal Credit. While the extension of the government’s furlough scheme offers us somewhat of a reprieve, landlords that do not effectively manage their Universal Credit cases could see themselves facing cash flow crises.

Before any eviction, we have to follow the steps in the pre-action protocol. This states: “If the tenant meets the appropriate criteria, the landlord should apply for the arrears to be paid by the DWP [Department for Work and Pensions] from the tenant’s benefits.”

But increased wait times and a too-complex payment system would often see arrears increase and landlords reluctant to make extensive use of Alternative Payment Arrangements (APA). Thankfully, that DWP payment system is changing, but it may be a while before we understand that the APA truly is our friend.

“Nobody should be left behind, and it is of the utmost importance that we keep our residents in mind and not digitalise for the sake of it”

COVID-19 has also given us no choice but to embrace digital transformation and innovation. Working from home has been revelatory, and does allow us to widen our talent pool. It is also an opportunity for us to review our processes, remove unnecessary home visits and interviews, and reduce the cost of recovery.

We must, however, remember that we have residents who have no desire to sit down and speak with us over Microsoft Teams. I am advocating a future that drastically reduces but does not do away with face-to-face services. Nobody should be left behind, and it is of the utmost importance that we keep our residents in mind and not digitalise for the sake of it.

Nobody is happy about COVID-19. But income teams can seize this opportunity to change the way they work for the better and the benefit of staff and residents.

Michael Lynch, income services manager, London Borough of Havering

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