Hillingdon Improvement Programme
Options for a Resident
Entitlement Card
Full Report Version
14th September 2007
Property of the London Borough of Hillingdon
Darryl Wallace – Report Author and Project Manager - contact ex 7689
Paul Feven – Project Sponsor – contact ex 7771
Options for a Resident Entitlement Card - D Wallace
Page 1 of 38
Contents
1.0 Section One - Summary
Pages 3 – 4
1.1 Five Key Tests
Page 3
1.2 Summary of recommendations
Page 4
2.0 Section Two – Research and Information
Pages 5 - 30
2.1 Business Case for a Smartcard
Page 5
2.2 National and Regional Smartcard Organisations
Page 9
2.3 Local Authority Smartcard Schemes
Page 14
2.4 Private Sector Smartcard Schemes
Page 19
2.5 Sounding Out Hillingdon Residents and Business
Pages 21 – 28
2.6 What did residents think?
Page 21
2.7 What did business think?
Page 26
2.8 Existing Hillingdon Cards
Page 29
2.9 Which Type of Card
Page 30
3.0 Section Three – Options for a Hillingdon Card
Pages 31 – 38
3.1 The Five Key Tests for a Hillingdon Card
Page 31
3.2 Options for a Hillingdon Card
Page 36
3.3 Step One: Which council services should be included?
Page 36
Property of the London Borough of Hillingdon
3.4 Step Two: Which partner services and features should be
Page 37
included?
3.5 Step Three: Which additional features and benefits should be
Page 37
included?
3.6 Step Four: Which type of card?
Page 38
3.7 Step Five: Which back office systems should be included?
Page 38
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1.0 Section One - Report Summary
The Hillingdon Improvement Programme (HIP) is currently implementing
improvements to the council’s customer relationship management systems. In
June 2007 members asked officers to look at the options for introducing a
Hillingdon resident’s smartcard.
The option of introducing a Hillingdon smartcard is being explored as part of
the HIP customer focus project. This report will provide members with relevant
up to date smartcard information covering the options and benefits of
implementing a resident’s entitlement ‘smart-card’.
This report has been constructed in three sections. The first section gives an
overall summary, including objectives and recommendations. The second
section will provide members with research and information. The third section
will look at whether a resident’s smartcard is available that can satisfy five key
tests set down by members. It will then take members through a series of
options and possibilities for introducing a Hillingdon resident’s card: a ‘build
your own card’ menu.
There is also a summary version of this report for the HIP steering group and
a third document containing full details of the evidence gathered during the
research.
The research for this report included a ‘sounding out’ programme to get views
from residents and local business. The results of this are summarised in
section two and referred to throughout the report where relevant. The full
results of the consultation are in the separate evidence document.
1.1
Five Key Tests
When asking officers to look at the feasibility of a resident’s card, members
set down five key tests that should be met if a card is to be introduced. These
are:
1. A card scheme that will enable us to build up the basics first, so that we
can be sure it will work. Then it can become bolder in its ambition in the
medium to longer term.
Property of the London Borough of Hillingdon
2. A card that is fit for the 21st century customer experience. Many residents
now prefer to ‘self serve’ and access council services at a time that suits
them.
3. A card that is helpful and delivers what residents need, without appearing
paternalistic.
4. A card that will help us be one council internally and 'team Hillingdon'
externally.
5. A card that assists us to build effective partnerships.
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The research and information contained in this report demonstrates that a
card can be introduced in Hillingdon that passes these five key tests. This
report will return to explore this further once the reader has been briefed on
background context and current card schemes in operation.
1.2 Summary
of
Recommendations
• A Hillingdon resident entitlement smartcard should be introduced as the
five key tests can be passed.
• The card should be introduced in phases to minimise risk.
• A pilot first phase should be implemented with staff ID badges and access.
This has lower public profile risk and will assist with overcoming any initial
teething issues.
• The second (public launch) phase of the card should be with library
services and multi-storey car parks, plus six larger car parks. Street
parking and smaller car parks do not currently provide a viable business
case for inclusion.
• The card should include an e-purse to enable the cardholder to purchase
goods and services with the card. A commercial partnership should be
entered into with either the council’s current banking partner or one of the
credit card organisations to provide this, depending on where best value
can be achieved.
• The public launch phase should include discounts for cardholders in local
shops and restaurants / cafes.
• Phase two should include web site back up for card services including
card e-purse top up. This should be improved over time to include useful
information and recommendations.
• Phase three should include leisure services, rent and sundry payments,
civic amenity sites and a pilot at Ruislip High School.
• Phase four should include council tax payment and schools
Property of the London Borough of Hillingdon
• Each service / project added should be business case led and funded by
the identified savings, unless otherwise instructed as a council priority.
• Further consideration to be given to including the Oyster functionality for
travel on London transport from phase three onwards.
• Additional services, such as access to adult social care can be explored
and included as opportunities arise.
• Further phases can include additional rewards and benefits linked to
council and local area agreement priorities.
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2.0 Section Two – Research and Information
2.1
Business Case for a Smartcard
The qualitative business benefits to local authorities introducing a resident’s
smartcard are well publicised and promoted by smartcard organisations.
Some members may be aware of them from a previous report presented to
the HIP steering group in February 2006. A summary is given below:
Qualitative Business Benefits
• Citizens desire for smartcards that enable them to self serve at a time
suitable to them
• Contribution to the E-government agenda
• Branding and Public Relations – the council may be perceived as more
modern
• Better management information and customer intelligence, to target
services and resources more effectively
• Social inclusion – reducing stigmas attached to claiming benefits and free
school meals
• Facilitate cross boundary services
• New partnership opportunities – for example with TFL and local business
Business benefits for specific services are:
Library Services
As a single application the business case for a smart library card would never
“stack up”, however there are many benefits and added values to libraries in
being part of a multi-application card scheme
• Use of a purse for fines and purchases
• Allow self-service including payments for PC’s, photocopying
• Increased number of service users / members
• Out of hours access to areas of the library
• Joint promotions / discounts with other services
• Enrolment process no longer required.
• Auto entitlement to concession from card
Property of the London Borough of Hillingdon
Leisure
Similarly, the leisure service can also achieve benefits and added value from
being a part of a corporate scheme
• Fast
track,
unmanned
access for pre paid bookings
• Auto entitlement to concessions
• Cashless
environment.
• Promotions and discounts e.g. frequent user
• Joint schemes e.g. healthy life style reward schemes
• Increased number of service users / members
• Enrolment process no longer required
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Schools / Cashless Catering
Cashless catering in already in place in a
number of schools in the borough
bringing with it the potential benefits of:
• free meals without stigma,
• reduced bullying,
• increased sales
• Less cash handling.
• Each school could also add value by extending the scheme to include
other services such as
• registration,
• door access to improve security
• Reward schemes e.g. merit points for extra curricular activities or healthy
eating.
Less well publicised are business cases that have constructed a cost for
smartcards based on financial modelling.
West London Alliance Business Case
The West London Alliance commissioned RSE consulting to construct a
business case with a report published in November 2005. Some members
may have seen this previously as it was reported to the HIP steering group in
February 2006. The business case model looked at three options for a
smartcard:
• A single borough card
• West London boroughs introducing a card in partnership
• West London borough introducing a card in partnership with TFL
WLA Partnership vs. Single Borough Implementation:
This presents a comparison of the base-case payback per authority working in
partnership with all other WLA authorities, versus the base-case payback per
authority working individually (in both cases with authorities issuing cards with
multiple functions).
Property of the London Borough of Hillingdon
The difference in payback stems from the economies of scale exploited from
working in partnership; economies that are impossible for an individual
authority to enjoy.
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£000's
Setup
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Single Borough (Base-
The payback from a single WLA borough issuing multiple-function Smartcards in
case) isolation (using base-case assumptions)
Cost 531
1,002
333
505
274 274
2,918
Benefit 0 7
60
118
128
134
448
Cashflow
-531
-994
-273
-388
-145
-139
-2,470
Payback
-531
-1,525
-1,798
-2,185
-2,331
-2,470
Partnership (Base-case) The payback from a single WLA borough issuing multiple function Smartcards in
partnership with all WLA boroughs (using base-case assumptions)
Cost 432 851
259
426
235 235
2,437
Benefit 0 7
60
118
128
134
448
Cashflow
-432
-844
-199
-308
-106
-100
-1,990
Payback
-432
-1,276
-1,475
-1,783
-1,889
-1,990
WLA Best-case TfL partnership scenario:
Partnership (Best-case) The payback from a single WLA borough issuing multiple function Smartcards
in partnership with all WLA boroughs (using best-case assumptions). This
model assumes that existing Oystercard top-up technology is used and
therefore no extra top-up machines are required
Cost 225 471
145
216
160 160
1,377
Benefit 0
24
121
260
303
334
1,042
Cashflow
-225
-447
-24
44
143 174
-336
Payback
-225
-672
-696
-653
-510
-336
This business case shows a best-case scenario of a smartcard costing
£336,000 after 5 years, if all the WLA boroughs work in partnership with TFL.
The option to develop a card alongside other west London boroughs may be
more cost effective, but currently only Brent are actively involved in
developing a smart card.
The WLA business case was based on an implementation strategy that would
include services in a smartcard scheme in the following phases:
1. Level one authentication – this is for service transactions such as paying
Property of the London Borough of Hillingdon
fines or identification to benefits staff
2. Parking Services
3. Leisure Services
4. Library Services
No other local authority has introduced parking services as the first phase
service on a smartcard due to the start up and implementation costs.
Smartcard use for multi-storey parking schemes is more cost effective than
street parking machines, particularly in Hillingdon where customers are often
only paying 40p for each transaction.
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The most cost effective service for local authorities to include is leisure
services and then payment of rent and council tax followed by library services.
Both Waltham Forest and Bolton have constructed business cases for
introducing smartcards that follow alternative phased programmes. These are
summarised later in this report.
Property of the London Borough of Hillingdon
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2.2
National and Regional Smartcard Organisations
The government set out a policy framework for Smart Cards in July 2003 as
part of their Modernising Government agenda. The policies developed in this
framework are:
• To achieve a compatible infrastructure for smart cards throughout
government and industry. Suitable smart card standards and specifications
will be mandated through the e-Government Interoperability Framework
(e-GIF).
• To promote an integrated and coordinated approach to smart card
schemes within the public sector. Any business case for smart card
schemes should consider wider government objectives, partnerships with
the private sector and harmonisation with neighbouring public sector smart
card schemes.
• To safeguard citizens rights and guarantee data transparency. As well as
complying with the Data Protection Act, any data stored on the card should
be readily accessible by the cardholder.
• To enable the delivery of secure government services and e-commerce.
The National Smart Card Project (SMART) was established in 2002 as part of
a series of national projects forming part of the overall e-government
programme identified in the National Strategy for Local e-Government.
The National Smart Card Project involved English local authorities, central
government departments, and private sector organisations. The project was
structured around the delivery of ten work packages:
Work Package
Lead Organisation
1
Project Management
Bracknell Forest Borough Council
2
Business Case / Model
Southampton City Council
3
Standards
London Connects
4
Procurement Models
North East Regional Smart Card
Consortium
5
Links to Central Government and
Department of Education and
Property of the London Borough of Hillingdon
other National Initiatives
Science
6
Commercial Applications
Southampton City Council
7
Cross Region Delivery
Bolton MBC
Applications – e-purse, Transport
& Authentication
8
Legal/Data Privacy
London Borough of Newham
9
The Smart Card Starter Pack
Cornwall County Council
10 Dissemination
Doncaster MBC
Bracknell Forest Borough Council took ownership and control of the project
and its products, including the SmartConnect software, on 20 July 2005.
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SmartConnect – Bracknell Forest Borough Council
SmartConnect, is a citizen registration database and card management
system developed for local authorities.
SmartConnect enables organisations to upgrade and modernise their existing
card schemes so they can meet current and anticipated Government
requirements.
The software can register citizens and authenticate them, track data and
record entitlements, issue cards - which can be smart, magnetic stripe or bar
code - and store scanned documents. There is the option to modify the printer
drivers to allow compatibility with existing card scheme systems (such as
magnetic stripe or bar code).
Some of the local authorities involved in the project have introduced
smartcard schemes in their boroughs. A summary of some of these is
provided later in this report.
There are a number of national organisations that can assist local authorities
to develop and implement smartcards:
Local Authority Smartcard Standards e-Organisation (LASSeO)
LASSeO was created to maintain and update the output information from the
National Smartcard project. LASSeO is concerned with developing smartcard
standards and specifications for the public sector and as such reduce the
risks caused by a lack of agreed standards.
Smart Card Networking Forum (SCNF)
The SmartCard Networking Forum is a group of public sector representatives,
currently from 347 organisations throughout the UK. Representatives are
involved in using, planning to use or simply interested in exploring the use of
smart cards to improve services to their customers. The Forum's objectives
are to:
• exchange ideas and information about the use of smart cards in local
government
•
Property of the London Borough of Hillingdon
share implementation experiences and issues
• explore the potential uses of smart cards
• investigate ways of working within both public and private sector
• research external funding possibilities
Integrated Transport Smartcard Organisation
ITSO was set up in 1998 to build and maintain a common specification for
tickets used for public transport. This enables customers to use different
transport operators with one ticket. The income received from the customer
can then be distributed to the relevant transport operators.
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The Membership of ITSO is broadly based and includes PTE's, Local
Authorities, Passenger Transport Operators and Suppliers of equipment,
systems and services.
A national concessionary travel pass scheme is being proposed by the
Department for Transport to be implemented from April 2008. This scheme
requires smartcards used for concessionary travel purposes to be ITSO
compliant.
There are also a number of London regional organisations that are promoting
the use of smartcards and that can assist local authorities to develop and
implement smartcards.
London Connects
London Connects is an organisation funded and created by London Councils
and the London Development Agency to support and encourage the adoption
of new technology throughout the public sector. London Connects brings
together local and regional partners to support the delivery of the e-
government agenda across the capital.
London Connects are promoting the creation of a single smartcard scheme for
London called ‘Your London Card’. In 2006 they facilitated two working groups
to develop this concept further. More than 20 local authorities attended as well
as representatives from regional bodies such as Transport for London and
London Libraries Development Agency. This led to the creation of the Your
London Card Executive Group with boroughs represented sub-regionally. The
project has so far:
• Adopted a London-wide card specification, the 4K Mifare card
• Obtained international APACS numbers to enable payment functionality
• Applied to PASS for a proof of age scheme
• Procured 50,000 4K Mifare cards through LB Kingston. Other boroughs
can access surplus cards and procure more cards through this framework
without needing to procure separately.
• Obtained an initial proposal from Transys/Tfl to include the Oystercard
functionality
Property of the London Borough of Hillingdon
London Connects proposes that the Your London Card should be multi-
branded so that individual boroughs can promote their identity, as well as
including other brands such as Oyster. One side of the card will be borough
branded and the reverse side Oyster branded.
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London Libraries Development Agency (LLDA)
The LLDA commissioned Price Waterhouse Cooper to explore the feasibility
of a single membership card for London’s public libraries. The
recommendations of the report are only just being taken forward. They include
establishing how many boroughs wish to proceed, funding sources,
communication strategy, market research, developing a more detailed
business case, establishing protocols, minimum standards for membership
and researching the likely level of stock transfer and movement across
boroughs.
Seven London boroughs that currently use the DS ‘Open Galaxy’ Library IT
system are now collaborating to develop a cross borough scheme. Brent and
Richmond are the only west London boroughs involved in this collaboration.
Hillingdon does not currently use the DS Open Galaxy system.
Resident Sounding Out – Library Services
When asked which services residents would find it most useful to access with
a smartcard, Library services was the most frequent response, with 318 out of
387 residents stating this would be useful or very useful.
Transport for London Oyster Card (TFL)
TFL, on behalf of the Greater London Authority, have introduced a London
wide transport smartcard scheme called Oyster. Transys Ltd carries out
operational delivery and administration of the Oyster scheme on a long term
contract. The Oyster scheme has a rigorous approach to branding that
encourages consumer confidence, as well as offering significant travel
discounts that increases usage.
The inclusion of Oyster functionality is logical for London borough cards as
the technology is already proven to work, there are many London resident
service users who access borough services as well as travel on public
transport.
Four London boroughs have run pilot smartcard schemes that included Oyster
functionality. However, the addition of Oyster was not successful due to a
variety of reasons including cost, card supply and printing issues.
Property of the London Borough of Hillingdon
Having Oyster on the card is good from a customer recognition value, but for
the great majority of local authority services customers, it may not add
practical value. There was a low take up of less than 4% of customers using
the Oyster function of their borough card in the pilot schemes.
London Connects is negotiating a proposal for the inclusion of Oyster in the
Your London Card. Oyster currently utilises a 1K Mifare card and is
compatible with the 4K Mifare card. The costs given by Transys for the
proposal are proving to be the main barrier to agreement. These are:
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• £256,000 London wide costs, for development of a generic legal
agreement, testing and project management, plus,
• £78,000 costs to each borough, for testing, communications, encoding and
amendments to the legal agreement.
Officers contacted Transys to establish the costs for a partnership with
Hillingdon. Costs for a single borough card based on 10,000 cards is still
£78,000 as per the London Connects proposal. Transys estimate that each
additional card thereafter will cost £1.
Resident Sounding Out – Travel on public transport
When asked which services residents would find it most useful to access with
a smartcard, Travel on public transport was the second most frequent
response, with 300 out of 387 residents stating this would be useful or very
useful.
Property of the London Borough of Hillingdon
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2.3
Local Authority Smartcard Schemes
As part of the HIP project officers visited and surveyed other local authorities,
both in London and nationally, who have introduced smartcard schemes.
Some of these authorities were participating in the SMART project mentioned
previously. Full details of the surveys of other local authorities can be found in
appendix C.
Outside London
Bolton MBC
Bolton Smart was introduced in 2006, although it was initially piloted using
staff ID cards in 2005. Bolton Smart enables residents to access Library and
Leisure services as well as bus travel, including the concessionary bus pass.
There are currently 11,000 cards in circulation with a target of 40,000 by April
2008.
Bolton Smart is also an e-purse enabling purchases on the card by pre-
payment at many local commercial and council outlets. Bolton has formed a
partnership with SQUID who operate the e-purse function. Local shops have
SQUID readers integrated with debit/credit card chip and pin machines.
SQUID provided the card readers and technology in exchange for a 1.5%
commission on transactions. This is fairly consistent with the charges Visa
levy. 6% of the total commission earned by SQUID is paid to Bolton council,
estimated to be £27K per year.
Business Sounding Out – Pre pay card and commission charges
As part of the HIP project local business was asked whether they would
support a pre pay card scheme that would enable residents to purchase
goods in their premises. 75% of business responded yes.
Businesses were also asked whether they would still support card
transactions if there was a 1.5% commission. 12 out of 20 responded yes. 2
others responded that they would like to negotiate this down to around 1%.
Another feature of Bolton Smart is the inclusion of the Youth Opportunities
Scheme; where to promote positive activities SQUID is programmed to only
accept ‘positive’ purchases made with the card e.g. leisure and libraries
Property of the London Borough of Hillingdon
Bolton Smart is a high specification Java card, the JCOP31 with 72K of
memory. Bolton estimates that the cards cost £7 each, including printing,
postage, management and enrolment.
Bolton received £600K of funding from the government as part of the SMART
project covered previously in this report. Their work package as part of the
project was to pilot card use for e-purse, transport and resident authentication.
The Bolton Card project implementation strategy is in the following phases:
1. Libraries and leisure services
2. Transport
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3. Staff ID and Access
4. Rent payments
5. Schools
6. Car Parking
7. Voting and digital certificates
Set up costs were estimated at
• Capital Costs £261,000 over 5 years - to be offset against existing e-
government provision
• Revenue Costs £426,000 over 5 years – to be offset against £365,000
existing revue budget for card services
There is no initial charge to residents for the card. Residents are charged for
lost or broken cards.
Bracknell Forest BC
E+ was introduced by Bracknell Forest in 2001 and there are now 56,000
cards in circulation. The card enables residents to access library and leisure
services as well as benefiting from discounts in local shops. E+ was also part
of a Pathfinder scheme for the Department for Education and Science to
introduce smartcards into schools. E+ enables children to register their
attendance at schools and enables cash-less catering. In LB Hillingdon,
Ruislip High School has already introduced a similar scheme, which this
report will cover later on.
E+ received external funding from DfES for the schools element and funding
from the ODPM for the leisure services element.
E+ is a Java card, the JCOP30 that has now been superseded by the
JCOP31 used by Bolton MBC. E+ cards cost an average £6 each.
Bracknell Forest led the ODPM supported National Smartcard Project.
Residents are charged not charged for the first card but are charged for lost or
broken cards on a discretionary basis.
Property of the London Borough of Hillingdon
Southampton City Council
Smart Cities was originally introduced by Southampton in 2002 but was re-
launched with more functionality in 2005. Phase one in 2002 enabled cash-
less school vending. In 2005 the Smart Cities also incorporated bus passes,
library and leisure services, as well as a proof of age and donor card. There
are now 30,000 cards in circulation.
Smart Cities opened up new partnership working opportunities with UK
Transplant, the NHS Organ Donor Register, and PASS for proof of age. In the
future Smart Cities will include shopping discounts, parking payment schemes
and extended travel usage.
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Smart Cities was originally based on the Java card costing an average £6.
Smart Cities has now switched to using the 4K Mifare card reducing costs
considerably to 85p per card per 10,000 cards ordered.
There is no charge to residents for the card.
Aberdeen City Council
Accord Card was introduced by Aberdeen at the end of 2003, with over
63,000 cards now in circulation. Accord is mainly aimed at younger people
including cashless vending and catering in schools, concessionary bus and
rail pass, access to leisure services, proof of age (PASS hologram
accredited), rewards and information for young people.
Accord also has a points reward system to encourage healthy eating in
schools.
Accord card is currently a Slumberger card but is being changed to the Java
JCOP card so that it is ITSO compliant for the Scottish National Entitlement
Card (concessionary travel). Cards cost Aberdeen an average £5 each.
There is no charge to residents for the card. Residents are charged for lost or
broken cards.
London Region
No London boroughs have yet introduced a truly multi-functional smartcard
scheme. Several boroughs have introduced cards that they aim to develop
into multi-function smartcards.
LB Waltham Forest
OneCard was introduced by Waltham Forest in 2007, with 11,000 cards in
circulation. OneCard enables residents to pay council tax, rents and sundry
charges and is also a staff ID and access card. The next phase will enable
library services followed by leisure services and schools. Waltham Forest is
one of the boroughs using the DS Open Galaxy Library system.
Property of the London Borough of Hillingdon
OneCard is a 4K Mifare card costing an average of £1.30 per card. The card
is procured through the London Connects contract with one side of the card
already branded. Waltham Forest then uses a contractor called Unicard to
print the other side with their brand.
They budgeted £125K for project start up costs and predict they will save
£150K over 5 years. The OneCard project implementation strategy is in the
following phases:
1. Payment of Council tax, Rent and Sundries and a pilot of staff ID and
facilities access
2. Libraries
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3. Staff Access
4. Leisure Centres
5. Schools
6. Migration to a potential London Olympic Card
Feedback so far from Waltham Forest is that they are on track to achieve their
business case aims. They employed a consultant to assist with
implementation and project management, for which they budgeted £70K.
Waltham Forest employed a consultancy called SmarTran to provide
smartcard expertise and implementation.
There is no charge to residents for the card.
LB Newham
The Newham Connects card was introduced around four years ago. The
original plan was for the card to come with Oyster functionality. Newham used
the same card supplier as Oyster, but this caused problems. Oyster had a
very high new take up rate at the time and their card supplier could not meet
their demand. As Newham was only ordering a comparatively small amount of
cards compared to Oyster, their supply of Newham branded cards was
unpredictable.
Currently Newham Connects enables residents to access libraries and leisure
centres.
Newham Connects is not a multi-functional smartcard where one microchip
houses several functions that enable access to services. Newham Connects
is one card using different technology systems, meaning that residents have
to activate the card by making a new application when accessing different
services. For example, if they currently use the library but want to use a
leisure centre, they will still have to make an application and give their details
to leisure services even though they can use the same card.
There is no charge to residents for the card.
LB Greenwich
Property of the London Borough of Hillingdon
The Greenwich Card was originally launched in 1994 but its momentum faded
until the Millennium Dome exhibition opened in 2000. Greenwich Card holders
benefited from a discounted admission to the Millennium Dome that resulted
in a significant boost in subscriptions to the card. There are now 40,000 cards
in circulation. The Greenwich Card enables residents to access leisure
facilities and benefit from discounts in local shops.
Greenwich run promotional campaigns and competitions through the card and
have set up email alerts to card holders informing them of borough events,
special discounts and council information.
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The Greenwich is a barcode swipe-card rather than a smartcard. The
Greenwich Card uses the technology systems of Greenwich Leisure, the
contractor they tendered to run their leisure services.
However, there was a pilot to integrate Oyster onto the Greenwich Card and a
pilot scheme with 2000 cards was launched. This was not successful due to
the associated costs and necessary change in technology.
The Greenwich Card costs an average £2 per card. Residents are charged an
annual subscription fee to join the scheme. This is currently £2, with a £1
concessionary rate for those on benefits. There is also a corporate
subscription to the scheme costing either £100 or £1000. This is mainly
marketed through the ability of subscribers to use the borough’s corporate box
at the O2 venue (previously known as the Millennium Dome) and the Excel
venue.
Key Points for Hillingdon
There are some advanced smartcard schemes nationally which Hillingdon can
learn from.
Although no London borough currently has a multi-function smartcard, the
various schemes introduced offer experience that Hillingdon can learn from.
Waltham Forest is the most advanced and feedback from their officers was
positive. They have introduced a card that is basic in the first phase and will
add services in later phases.
It should also be noted that, despite partnerships with TFL/Oyster not being
successful so far, all these boroughs still aim to include Oyster functionality on
their cards in the future.
Boroughs do not charge residents for their smartcards, although a
discretionary fee is often charged if a card is broken or lost.
Property of the London Borough of Hillingdon
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2.4 Private
Sector
Smartcard Schemes
Loyalty Reward Cards
The bulk of card use in the private sector is based on the reward and loyalty
card concept. There are many well-known brands in the retail market.
However, all but one of them uses swipe card technology, the exception being
the Boots Advantage Card. The main purpose of these cards is to encourage
brand loyalty and profile customer purchases to target advertising and
promotions effectively.
As part of the research for this report, officers tried to contact a number of
private sector organisations that run card schemes, including Boots, Nectar
and Shell. However, as with the business sounding out surveys, it proved very
difficult to engage with the private sector. Only Boots were willing to discuss
their card.
Boots Advantage Card
Boots introduced their Advantage card in 1997. It was created as a way of
encouraging brand loyalty and is used for most of their services, including
healthcare and parenting products.
They have not entered into any partnership arrangements with their card.
They point out that it is not used to profile customer purchases, as they prefer
to carry out surveys for that purpose. Boots order the card from a contractor
and then print their brand on.
Boots feel their card has helped their business grow and is very useful to
customers, from whom they receive positive feedback.
Payment Cards
Most bank credit and debit cards now use chip and pin smartcard technology,
the main driver being security. However, large card payment organisations,
such as Visa and MasterCard are now launching contact-less smart card
products that allow purchases of up to £10 without needing to enter a pin
number. They believe this system will cut queues and the need to carry cash.
Property of the London Borough of Hillingdon
Customers pay for their goods by touching the card on a reader and the
money is then deducted from their bank account or added to their credit card
bill.
The new contact-less bankcards have created a commercial partnership
opportunity for public sector organisations using smart cards. Bolton MBC has
entered into a partnership with SQUID, as covered in the previous section of
this report. Oyster has recently launched a partnership with Barclaycard.
Customers can use their Oyster/Barclaycard to travel on public transport,
make purchases of goods without a pin up to a value of £10 and make
purchases using a pin over a value of £10. Kent County Council have also
linked up with RBS to provide a payment card for vulnerable adults through
the Direct Payments for social care scheme.
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Key Points for Hillingdon
Engaging with larger high street businesses will require the use of a
consultant, who has access to the key people in head offices. Organisations
involved in the national smartcard project that officers talked to as part of this
research also found it difficult to engage with larger chain businesses. Most of
these businesses will not want to share their loyalty card brand.
Business Sounding Out – Existing Loyalty Cards
75% of businesses surveyed stated they would not consider combining a
Hillingdon card with a card they currently operate. However, it should be
noted that nine businesses also gave this answer even though they have
commented that they do not currently operate a card scheme.
The most obvious commercial partnership opportunity is to combine a
Hillingdon resident card with a payment card. This will involve local
businesses when placing card readers in their shops and allow people to pay
for council services in local shops. As stated in the previously in this report,
75% of business stated they would be prepared to have card readers installed
on their premises that would allow customers to purchase goods and
services.
Other commercial opportunities for consideration are:
• Membership of clubs – cardholders could access the facilities at local Golf
clubs, fishing permits or football clubs
• Access to premises – partnerships with local companies to reduce the cost
of their staff access and ID schemes, combined with a borough employee
version of the Hillingdon card.
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2.5
Sounding Out Hillingdon Residents and Business
As part of the HIP project, officers devised a ‘sounding out’ plan to find out the
views of Hillingdon residents and businesses to a residents smartcard.
Officers felt that it was valuable to provide members with views and
comments from residents and business while considering the options for
introducing a card.
The resident sounding out plan involved:
• Hillingdon residents being surveyed by researchers across the borough
• The project manager attending the Older Peoples Assembly to survey
delegates.
• The project manager attending the Connecting Communities event to
survey delegates
• Resident surveys posted on the council website and intranet
• The project manager presenting the concept to the senior managers
conference
The business sounding out plan involved
• A survey attached to the business e-newsletter bulletin
• The project manager and an assistant surveying shops in Uxbridge town
centre
• Surveys emailed to head offices of larger organisations
• Surveys emailed to local business in the Hillingdon local business
directory
2.6
What did residents think?
There were 387 respondents to the resident’s survey. (Approximately half of
respondents were not approached directly but chose to give their views via
the Internet or Intranet). This reveals a high level of interest in the concept of
a Hillingdon resident’s card.
Residents were asked five questions about the introduction of a Hillingdon
card. The responses to these questions are summarised below. Full details of
the responses and additional comments made by residents are available in
Property of the London Borough of Hillingdon
appendix B.
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Question 1:
We would like the card to enable people to use lots of different services,
please state which ones would be the most useful to you and your family?
This chart represents respondents who thought a card to
access the services listed would be useful or very useful?
350
Library Card Services
300
Travel on public transport
Leisure Centre Card
250
Car parking payment on
200
streets
Car parking payment multi-
150
storey
Paying council tax
100
School Meals and Vending
50
Paying rent or service charges
0
The chart shows that in respect of a card being useful to access services,
there are four service areas that are high prioty for residents. These are
library, leisure, parking (both multi-story and street) services and travel on
public transport.
Around 46% of residents thought that it would be useful to be able to pay
council tax with the card.
Although only 102 residents stated it would be useful to pay rent, it should be
noted that many residents surveyed do not pay rent.
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Question 2:
We would like this card to give rewards and benefits to residents, which ones
would be most useful to you and your family?
This chart represents the rewards and benefits that the respondents
felt were either useful or very useful?
Discounts in local shops
300
Discounts in local restaurants
and cafes
250
Discounts on parking
Discounts on leisure centres
200
NHS prescription entitlement
150
card
Rewards for healthy living
activities or volunteering
100
Organ Donor Card
50
Ability to pay council tax or rent
at pay points at local shops
0
Rewards for children when they
eat healthy food at school
The most popular rewards and benefits for residents were discounts in local
shops and restaurants.
In respect of council services, the most popular rewards were parking
discounts, closely followed by leisure centre discounts.
NHS services were also popular with more than half the residents surveyed,
implying that a useful partnership could be forged with one of the council’s
statutory partners.
Although rewards for children eating healthy food was the least popular, it
should be noted that not all resident’s surveyed may have children.
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Question 3:
A series of statements were presented to residents and they were asked
which ones they agreed or disagreed with.
This chart represents the respondents who agreed or strongly agreed
with the following statements
I don’t like the idea of a Hillingdon card, as I am concerned
about data protection issues.
I don’t like the idea of a Hillingdon card, as I am worried about
what happens if I lose it or it gets stolen.
I like the idea of having a Hillingdon card but I am worried
about what happens if I lose it or it gets stolen.
I like the idea of a Hillingdon Card but I am worried that I will
find it difficult to understand how it works
I like the idea of having one card that I can use to access
many services, instead of having lots of cards.
0
50
100
150
200
250
300
350
The chart shows that residents like the idea of having a card, especially one
that can be used to access many services. However, the majority of residents
do have concerns about their card being lost or stolen.
About a third of residents asked are concerned about data protection issues.
It should be noted that even though these residents stated they don’t like the
idea of a card due to data protection issues, in a later survey question most of
the same residents stated that a card was a good idea overall.
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Question 4:
Overall do you think a Hillingdon Card is a
good idea?
400
300
200
100
0
Yes
No
No Reply
This chart demonstrates that the overwhelming majority of Hillingdon
residents that took part in the survey think a Hillingdon Card is a good idea.
Question 5:
If there were a small charge for this card,
would you still be interested?
200
150
100
50
0
Yes
No
No Reply
This chart reveals that around half of all residents surveyed would consider
paying a small charge for a Hillingdon card.
Property of the London Borough of Hillingdon
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2.7
What did business think?
There were 20 respondents to the business survey. It proved difficult to get a
response from the majority of shops in Uxbridge town centre, as they are part
of larger chains, where surveys and enquiries have to be agreed by head
office. Many larger companies also have their own store cards with reward
schemes.
Businesses were asked five questions about the introduction of a Hillingdon
card. The responses to these questions are summarised below. Full details of
the responses and additional comments made by businesses are available in
appendix B
Question 1:
Would you consider supporting a pre-pay card
that would enable residents to purchase goods or
services using a pay point in your business
premises?
15
10
5
0
Yes
No
No Reply
The chart shows that 75% of businesses that responded would support a pre-
pay card that enables residents to purchase goods and services from their
businesses.
Property of the London Borough of Hillingdon
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Question 2:
Would you support card transactions if there
was a 1.5% commission on purchases taken by
the card provider?
12
10
8
6
4
2
0
Yes
No
No Reply
The chart shows that 60% of businesses would support card transactions if
there were a 1.5% commission taken by the card provider. This is a fairly
typical commission rate also charged by other companies such as Visa and
Mastercard. Two of the businesses that said no, would re-consider if they
could negotiate the charge down to 0.9%.
Question 3:
Would you like to offer discounts and/or loyalty
rewards to cardholders?
12
10
8
6
4
2
Property of the London Borough of Hillingdon
0
Yes
No
No Reply
The chart shows that 60% of businesses would like to offer discounts and
loyalty rewards to card holders. Five businesses commented that their head
office would have to agree any discounts and rewards.
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Question 4:
What would be the most useful aspects of a card for your
business?
Using touch card purchase
14
transactions for speed and
convenience
12
The opportunity to promote
10
my business with discounts
and loyalty reward
8
A card for employees as a
6
benefit of working in
Hillingdon
4
The opportunity to attract
2
customers to purchase
additional items paying rent
0
or council tax
The chart shows that the two most useful aspects of a card for business are
the speed and convenience of using a smartcard for transactions and to
promote their businesses through a reward and discount scheme.
Question 5:
Would you consider combining any smartcard
transactions your business currently operates
with a Hillingdon card?
15
10
5
Property of the London Borough of Hillingdon
0
Yes
No
No Reply
The chart shows that 75% of businesses would not consider combining a
Hillingdon card with a card they currently operate. It should be noted that nine
businesses also gave this answer even though they have commented that
they do not currently operate a card scheme.
If members decided to canvas business to participate in a Hillingdon card
scheme, consideration should be given to employing an external organisation
to assist with this process.
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2.8
Existing Hillingdon Cards
There are a number of non-smart cards being used across Hillingdon
services:
Service
Card
Approximate Number
Libraries
Fob - bar code
65,000
Leisure Swipe
Card
6,100
Rent Payment
Swipe Card
15,000
Council Tax
Under Tender
35,000
Asylum
To be tendered
1,150
E Procurement
Visa card
275
Staff ID/Access
Fob card
4000
Parking (Multi-Storey)
Swipe Cards
N/a
Schools (Ruislip)
4K Mifare
330 (rising to 900)
Appendix A provides a more detailed map of existing Hillingdon service cards
and services with potential for smartcard use.
Ruislip High School – Cashless Vending
The new Ruislip High School was opened for its first year intake in September
2006. The school was developed with smartcard technology.
The card being used is the 4K Mifare. It costs the school an average £1.50
per card. Pupils are charged £5 for a replacement if it is lost or broken
negligently.
The card enables pupils and parents to:
• Top up the e-purse for school catering and vending. This can either be
done on-line with a debit card or with cash in the top up machine.
• Have the card topped up to receive concessionary school meals where
entitled.
• Access the building.
• Access the printing and photocopy machines.
A library card system is being introduced that will be compatible with the
borough’s library systems
Property of the London Borough of Hillingdon
The card could also be a register for pupils but this feature is not currently
included. It could also be used to reward pupils for healthy eating, but this is
not currently required as the school has ‘excellent’ status for healthy school
meals.
There have been no issues with theft of cards. A photo is stored on the
database and is displayed at the canteen till when activated by the card chip.
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Which Type of Card?
The project manager was advised by contacts in other boroughs, where a
smartcard has been introduced, that the back office IT systems are more
important than the choice of card. Back office systems should be ‘future proof’
to enable all the proposed services to be phased in. Technology is constantly
evolving and there may be desirable to upgrade and replace cards in the
future.
4K Mifare vs Java Card
The choice of the 1K Mifare card for the Oyster scheme means that the
choice of a London smartcard has essentially been made. The Your London
Card Executive Group has already adopted the 4K Mifare card specification.
The most secure smartcard is the JCOP Java Card. However, this card is
significantly more expensive than the Mifare card.
The Mifare card provides a good compromise between security and expense.
It offers security sufficient for services required but not top level, mostly Tier 2
on the national security standards.
The newer 4K Mifare card has a chip that can be partitioned. It can have
Oyster technology on one side of the chip and council services on the other.
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3.0 Section Three – Options for a Hillingdon card
3.1
The Five Key Tests for a Hillingdon Card
Is it possible for Hillingdon to introduce a smartcard that passes the five key
tests?
1. A card scheme that will enable us to build up the basics first then become
bolder in its ambition over time
2. A card that is fit for the 21st century customer experience.
3. A card that is helpful and delivers what residents need, without appearing
paternalistic.
4. A card that will help us be one council internally and 'team Hillingdon'
externally.
5. A card that assists us to build effective partnerships.
Based on the context and information provided in this report the answer is that
Hillingdon can introduce a card that passes these tests.
Key Test One:
A card scheme that will enable us to build up the basics first, so that we can
be sure it will work. Then it can become bolder in its ambition in the medium
to longer term.
The introduction of smartcard schemes by other local authorities
demonstrates this is possible. Hillingdon can learn from the experience of
Waltham Forest’s the OneCard scheme.
By phasing in services to a smartcard risks can be minimised.
Recommendations for introducing a Hillingdon card are as follows:
Phase One (Oct 2008) - Pilot a smartcard using Staff ID/Access.
• This is a lower risk to the council’s reputation.
• 4K MiFare smartcards at £1.50 are considerably cheaper to produce than
the existing staff ID card at £6 each. In the financial year 2006/07 993
cards were issued. This could represent cash savings of £4,468 per year.
Property of the London Borough of Hillingdon
Phase Two (April 2009) - Launch the card to include Library Services and
include Car Parks (Multi-storey and large car parks). Backed up with web site
area for card top up and payments. Include discounts in local shops and
restaurants.
• Hillingdon residents that were surveyed as part of the sounding out plan
stated that a smartcard for Library services would be most useful to them.
Library Services already has a ‘card culture’ and there is scope for mass
circulation of cards amongst residents. Consideration would have to be
given to a non-resident version without other benefits, as non-residents
are also entitled to use Hillingdon library services. Library service senior
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managers have expressed a desire to be involved with a resident card at
an early stage.
• 77% of residents surveyed stated that a smartcard giving discounts on
parking would be useful to them.
• The council has two multi story car parks at the Cedars and the Granges.
There are also a further six larger car parks around the borough which
have a large number of residents and non-resident usage. These are at:
o Fairfield Road, Yiewsley
o Devonshire Lodge, Eastcote
o Long Drive, South Ruislip
o Civic Hall, Pump Lane, Hayes
o Green Lane, Northwood
o St Martin’s Approach, Ruislip
• There is currently a scheme allowing 30 minutes of free parking to
encourage people to use local shops. This could be replaced with 30-45
minutes of free parking for card holders, combined with price freezes to
encourage card sign-up. Consideration can be given to raising prices for
non-residents parking to offset costs.
• The inclusion of street parking and small car parks would currently be too
expensive. The West London Alliance business case in 2005 stated that a
single borough including parking services as a whole would face costs of
£1,180,850 against potential savings of £251,313.
Phase Three (April 2010) – Include Leisure Services, Rent and Sundry
Payments and Civic Amenity Sites. Also pilot schools with Ruislip High
School.
• 72% of residents surveyed stated that a smartcard for Leisure services
would be useful to them.
• Rent and sundry payment cards have recently been re-tendered on a 3-
year contract. This will tie in with the time this needs to be re-tendered.
• A smartcard to prove residency could prevent non-residents using
Hillingdon civic amenity sites without paying.
Property of the London Borough of Hillingdon
• Ruislip High School already uses a 4K Mifare card and could be a pilot for
other schools.
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Phase Four (April 2011) – Council Tax, Schools and Parking Fines
• Council Tax are currently tendering a new payment card with a contract to
commence in April 2008. This contract will expire in 2011. 46% of
residents surveyed stated that a resident card to pay council tax would be
useful to them.
The inclusion of Oyster functionality for public transport could be included
from phase two onwards. 77% of residents surveyed stated that a resident
card that is also an Oyster card would be useful to them.
One third of residents surveyed expressed concern that they will not fully
understand how a resident card works. This may be overcome by phasing in
services so as not to over complicate from the outset.
Key Test One:
PASS
Key Test Two:
A card that is fit for the 21st century customer experience. Many residents
now prefer to ‘self serve’, so that they can access council services at a time
that suits them.
• Accessing multiple services supplied by different organisations with one
card is pioneering new technology. A Hillingdon resident may be able to
use just one card to make payments, purchase goods in shops at a
discount, work out in the gym, borrow a DVD and library book and travel
home on the bus.
• A smartcard with an e-purse maximises cashless purchases.
• Residents will not need to complete as many forms when accessing
services and entitlements. A smartcard can store their information and
auto complete back office application and claim forms. It can be a proof of
entitlement.
• A resident’s entitlement card can be backed up with a comprehensive web
Property of the London Borough of Hillingdon
site. This can enable residents to access services at a time of their
choosing.
• Promotional
campaigns, discounts and event publicity can be targeted at
residents based on their consumer preferences and profile.
Key Test Two:
PASS
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Key Test Three:
A card that is helpful and delivers what residents need, without appearing
paternalistic.
• Residents can be persuaded over time to enrol for the new card through
the use of publicity campaigns, discounts and rewards. The Oyster card
has been very successful using these promotional methods.
• A smartcard scheme with an e-purse can include an auto top-up function
so that residents don’t have to remember.
• Profiling of card use can ensure residents receive information and publicity
that is more useful to them. This could be through email alerts they sign up
for or text messaging.
• 4K Mifare cards offer sufficient security at a lower cost. Java cards are
really only required for cards that may feature services requiring security
access that may be perceived as more paternalistic.
• One third of residents surveyed stated that they did not want a residents
card due to concerns about data protection. If a card were to be introduced
residents would need to be reassured that their personal information is
safe. Residents should be able to access the information stored on their
card on-line, possibly by accessing a password protected personal web
area.
• 22% of residents surveyed also expressed a concern about their card
being lost or stolen. A robust mechanism for cancelling lost or stolen cards
will need to be implemented. Residents should be able to call a 24 hour
number to report and block a missing card.
Key Test Three:
PASS
Key Test Four:
A card that will help us be one council internally and 'team Hillingdon'
externally. Property of the London Borough of Hillingdon
• One card with one Hillingdon brand for access to multiple council services.
Residents can access multiple council services using their card without
needing to be aware that different council directorates administer these
services.
• The card branding could be linked to the council magazine and publicity,
as well as the council website.
• A resident card can store personal information that can automatically
populate applications for services. This will negate the need for customers
to provide their details again when accessing different services.
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• A resident card could become a focal point by which service areas in
different council directorates collaborate, share information and
standardise procedures.
Key Test Four:
PASS
Key Test Five:
A card that assists us to build effective partnerships.
• A resident’s smartcard can be developed in partnership with both public
and private sector partnerships. Examples include:
o Developing a card through London Card Executive Group will develop
partnerships with other boroughs.
o Including Oyster for transport will develop a partnership with Transport
for London.
o Including discount and reward schemes in shops and restaurants will
create business partnerships. Local attractions and sporting clubs
could also be included.
o Including cashless vending and library services in schools will improve
partnerships with schools independent from the council
o Including NHS services such as prescription entitlement
Key Test Five:
PASS
Property of the London Borough of Hillingdon
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3.2
Options for a Hillingdon Card
Section one has established that it is possible for Hillingon to introduce a
resident’s smartcard that can pass the five key tests. This section will now
take members through a series of options and considerations.
Officers have included recommendations for building a card based on the
example given in the key test one section above.
3.3
Step One: Which Council services should be included
Which council services should be included in the resident’s card and what
phase should they be introduced?
Service Sounding
Out
Estimated
Phase
Yes / No
Results
Customer
Base
Library Services
The most useful
65,000 2
Yes
service for residents
Leisure Services
72% of residents
6,100 3
Yes
stated useful
Staff ID
N/a 4,000
1
Yes
Car Parking (Multi-
71% of residents
All resident
2 Yes
storey and large)
stated useful
car owners
Car Parking
72% of residents
All resident
- No
(street)
stated useful
car owners
Council Tax
46% of residents
35,000 4
Yes
stated useful
Rent and Sundry
26% of residents
15,000 3
Yes
stated useful
Civic Amenity
N/a All
residents
3
Yes
Sites
Asylum Payments
N/a 1,150
-
No
Benefit
N/a 1,900
-
No
Entitlements
Direct Payments
N/a 400
-
No
Property of the London Borough of Hillingdon
Scheme
Procurement
N/a 275
-
No
Cards
Youth
N/a N/a
-
No
Opportunities
Scheme
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3.4
Step Two: Which partner services and features should be
included
Which partner services should Hillingdon aim to include in the resident’s card
and what phase should they be introduced?
Service
Sounding Out Results
Phase
Yes / No
Public Transport
The second most useful service for
2+ Yes
(Oyster)
residents
Schools / Cashless 32% of residents stated useful
4
Yes
Vending
Discounts in local
60% of business surveyed will
2 Yes
shops and
support this. This is the most popular
restaurants
feature for residents.
E-purse
75% of businesses will support this
2 Yes
NHS prescription
63% of residents stated useful
4+
Yes
entitlement
Organ Donor Card
52% of residents stated useful
4+ Yes
Proof of Age
N/a 4+
Yes
(PASS)
3.5
Step Three: Which additional features and benefits should be
included
Feature
Sounding Out Results
Phase
Yes / No
Discounts on parking
77% of residents stated useful
4 Yes
Discounts on leisure
74% of residents stated useful
3
Yes
centres
Rewards for healthy
37% of residents stated useful
3
Yes
eating at school
Council Magazine linked N/a 2
Yes
to the brand of the
residents card
Property of the London Borough of Hillingdon
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3.6
Step Four: Which type of card
Consideration should be given to the choice of smartcard. These cards are
the two choices specified by the national and regional smartcard
organisations.
Card Choice Cost (approx)
Security
Other Factors
Yes/No
4K Mifare
£1.50
Tier 2
Already used by:
Yes
card
• London
Connects
• Oyster
• Ruislip High School
JCOP Java
£6 Tier
1
• Used successfully in
No
card
Bolton and Bracknell
Forest
3.7
Step Five: Which back office systems should be included
The card should be linked to a dedicated web site. What features should the
website include?
Features
Phase
Yes / No
Individual card holder log-in page to access information
2 Yes
such as recent purchases and card use
Individual card holder log-in page to access
3 Yes
recommendations based on consumer preferences
Email alerts about council information and forthcoming
3 Yes
events
Top up of card e-purse
2 Yes
Auto top-up of card e-purse
3 Yes
Reserving library stock
2 Yes
Making payments for services on-line
3 Yes
Property of the London Borough of Hillingdon
Options for a Resident Entitlement Card - D Wallace
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