Decision details

Kate Lee, Head of Exchequer Services attended and presented a report on Debt Management.

The outstanding debt position as at 31^st March 2016 was outlined and it was noted that the levels of outstanding debt continue to be high, with particular difficulties in collecting debts over 6 months old and a high number of debtors who recurrently do not pay their debts, particularly on Adult Social Care despite being chased by Debt Management.

An update was presented on a significant amount of work that has been undertaken over the last 12 months to put in place process, IT systems and policies that aim to increase the debt recovery rates over the next 12 months.

Members noted the main points:

·  The Corporate Income and Debt Management Policy, Processes and Responsibilities was reviewed in October 2015 and revisions approved by the Deputy Leader in March 2016. The new policy states that when all other debt recovery options have been exhausted, a referral is made to Legal Services, as it is acknowledged that those debtors contained within the care debt category could comprise vulnerable service users and a high degree of sensitivity surrounding the debtor. As a final resort a referral would be made to a Debt Collection Agency, again following a review process assessing the sensitivity and vulnerability of the debtor.

·  The non-residential charging policy is being revised to link to the revised Income and Debt Management Policy, Processes and Responsibilities and also changes are required in order to achieve increased income for the County Council as part of the budget savings programme, subject to consultation and Member approval.

·  The new Accounts Receivable System went live in July 2017, providing an automated solution for sending out reminders, statements and letters. The System is working well, providing the debt management Team with improved performance management information that allows the manager to see outstanding debts and individual collector performance.

·  All clients were encouraged to sign up to a direct debit mandate to ensure that care debt could be collected promptly. Lancashire's direct debit take up rate was above average for local authorities at circa 50%. Approaches were being looked at to increase the take up rate to nearer 90%, currently achieved by some local authorities.

·  The County Council's Legal Services team is undertaking a vital role in the recovery of debts. The revised Debt Management Policy contains options to take outstanding debts to court which will increase the number of cases Legal Services are involved in.

Resolved: - That the report now presented be noted.