Revenue & Benefit Services - Cambridge City Council
ANTI-POVERTY STRATEGY
1 Introduction
1.1
The Council’s Anti-Poverty Strategy approved in 1988 and updated in 2002
contains two principles, which have had particular importance in formulating
the Council’s approach to the collection of Local Taxes [
Council Tax &
Business Rates, Residual Poll Tax] and in the recovery of overpaid
Housing & Council Tax Benefit.
(a)
To maximise individual income levels through the provision of welfare
rights information and advice and the prompt, sensitive and accurate
administration of Housing and Council Tax Benefit.
(b)
To collect outstanding debts and charges in as sensitive a manner as
possible, to ensure that further hardship, distress or financial
difficulties are not created.
1.2
The approach advocated is one, which seeks to strike a balance between the
need to maximise income to the Council and the desire not to cause further
hardship to the poorest within the community. The main principles, which
underline this approach, are: -
(a)
the Council is trying to prevent debt occurring by maximising benefit
take-up.
(b) no
reasonable offer of payment should be refused.
(c)
the main measure of success should be those cases which are under
control. This will include, not only those people who are up-to-date
with their payments but also those who have made and are keeping
arrangements to pay arrears. This contrasts with the traditional use of
the percentage of cases in arrears as the Performance Indicator for
debt recovery.
(d)
clear information will be provided.
(e)
early contact [Reminders] will be made in the recovery process when
payments are missed.
(f)
the Council will work closely with independent advice agencies,
welfare rights agencies and other such organisations within the City.
(g)
a co-ordinated approach will be adopted when money is owed to more
than one Council department.
(h)
The authority will increase the range of payment facilities [e-payments]
and options to make payments.
M:\RevMGMT\JOHN\ANTI-POV\Anti-Poverty Strategy - Rev&Benefit Services.doc
Page 1
Created by John Frost
Revenue & Benefit Services
1.3 The
Council’s
Anti-Poverty Strategy acknowledged that many individuals
and whole households in Cambridge are living in poverty – some in absolute
poverty and many more in relative poverty.
2 Anti-Poverty
Strategy
2.1
The Council adopted an Anti-Poverty Strategy at the time of the introduction
of the Poll Tax (Community Charge) and asked all Committees to consider its
implementation, based on the following principles: -
• to provide services based on need, rather than ability to pay;
• to maximise individual income levels through the provision of welfare
rights information and advice and prompt, sensitive and accurate
administration of benefit;
• to collect outstanding debts and charges in as sensitive a manner as
possible to ensure that further hardship, distress or financial difficulties are
not created;
• to raise awareness of the general public, Council officers, individuals,
groups and communities of poverty in Cambridge, its origins, effects and
possible remedies;
• to ensure that lack of income does not affect a person’s ability to
participate in decisions about issues which affect them;
• to provide skills, training and encouragement to those people who need to
be able to express themselves and overcome their experiences of
dependency and powerlessness;
• to ensure that the benefits arising from capital and revenue expenditure
by the Council accrue to those in greatest need.
2.2
Whilst it is acknowledged that the Poll Tax (Community Charge) was replaced
by the ‘Council Tax’ in April 1993, the original principles agreed by Members
in relation to the Anti-Poverty Strategy, remain in place.
2.3
As part of the findings of the Income Wealth & Opportunity Report,
commissioned by the City Council and the Councils continued need to ensure
that there is equality throughout in its dealings with the collection of local
taxes and the administration of Housing and Council Tax Benefit, the City
Council remains fully committed to the principles of the Anti-Poverty Strategy.
2.4
A Corporate Objective of Cambridge City Council (“the Council”) is to remove
barriers created by poverty, ignorance and conformity.
2.5
The City Council recognise that many people within the community are
required to make regular payments to the Authority in relation to services
provided, or services supplied as part of its statutory functions.
M:\RevMGMT\JOHN\ANTI-POV\Anti-Poverty Strategy - Rev&Benefit Services.doc
Page 2
Created by John Frost
Revenue & Benefit Services
2.6
The Council also recognise that there is a need for a thoughtful, well
organised and efficient payment and collection system for Local Taxation
[Business Rates & Council Tax] and benefit overpayments, as well as
continued activities associated with the collection of residual Poll Tax and
they are under a duty to maximise the collection of these taxes/payments.
2.7
Some people will experience difficulties in paying local taxes and the City
Council will, as part of its ‘
Anti-Poverty Strategy’, wish to be aware of the
social implications in relation to any enforcement policy that it adopts in
relation to the services provided within Revenue & Benefit Services.
3 Procedures
3.1
As with all debts, the Council will wish to distinguish between those who
cannot pay and those who
will not pay local taxes.
3.2
The City Council will provide (within the framework of the Local Government
Finance Acts) an efficient and cost effective debt recovery procedure.
3.3
The City Council local taxation enforcement and recovery procedure must be
sufficiently effective to ensure that whenever they have the means,
tax/chargepayers pay their debts and are not able, or encouraged to
avoid their obligations.
3.4
As part of its ‘Anti-Poverty Strategy’, Revenue & Benefit Services’ staff will
consider debtor’s personal, family and social circumstances and will provide
clear, sensitive arrangements for those who need extra time to pay
outstanding debts.
3.5
Revenue & Benefit Services will provide clear, written, enforcement and
recovery guidelines to all staff, bailiffs, collection agencies, rent collectors and
others who may be involved in the collection, recovery and enforcement of
local taxes, recovery of overpaid benefit and residual Poll Tax (Community
Charge).
3.6
Staff will have easy access at every stage to Revenue & Benefit Services’
debt recovery procedure, to help them provide advice on debts to tax/rate
payers. Staff will also attempt to identify potential problems with regard to
debts and deal with them as soon as they arise.
3.7
Clear information about enforcement and recovery procedures will be
provided to individuals and advice agencies on request, so that
tax/chargepayers know where they stand and have a clear understanding of
the procedures that are followed by the Council.
3.8
Debtor’s will be protected from harassment and undue hardship and Revenue
& Benefit Services’ staff will seek to provide advice and guidance to debtors
to help resolve the debt problems at an early stage, rather than allow debts to
escalate out of control.
M:\RevMGMT\JOHN\ANTI-POV\Anti-Poverty Strategy - Rev&Benefit Services.doc
Page 3
Created by John Frost
Revenue & Benefit Services
3.9
Revenue & Benefit Services’ staff will, when consulting with debtors, consider
the differences, which may exist between the well-organised creditor and
badly, organised debtor and achieve a fair balance between any claims of
competing creditors.
3.10
Having identified between those who
cannot pay and those who
will not pay, staff within Revenue & Benefit Services will, during the stages of
enforcement, take into account an individual’s personal circumstances and
their ability to pay the charge.
4
Factors for Consideration
4.1
The Council will consider the following factors before initiating enforcement
proceedings.
a.
What is the status of the individual concerned;
Full Tax/Chargepayer,
Student, Exempt,
Resident
Tenant
Pensioner
Single Parent
Disabled person
In need of care
Asylum seeker
Severely ill
Homeless
b.
For Council Tax/Business Rates enforcement, is the individual liable for
Council Tax/Business Rates?
c.
Has a ‘demand notice’ (bill) been issued to the individual (by name),
d.
Has the individual paid the tax/rates/charge?
e.
Has the individual incorrectly paid into another account?
f.
Has the individual made an objection/appeal and paid a tax/rates/charge
to another authority?
g.
Has the individual requested/received Housing or Council Tax Benefit,
Council Tax discount, exemptions or Business Rate relief?
h.
Has the individual any outstanding debts with other departments within
the Council?
i.
Are the Council able to use their discretionary powers?
j.
For residual Poll Tax (Community Charge) enforcement, was the
individual entered on the Community Charge Register for the Authority?
4.2
The City Council has adopted a Corporate approach to debt recovery through
the Enforcement Concordat Working Group.
M:\RevMGMT\JOHN\ANTI-POV\Anti-Poverty Strategy - Rev&Benefit Services.doc
Page 4
Created by John Frost
Revenue & Benefit Services
J A FROST
Head of Revenue & Benefit Services
M:\RevMGMT\JOHN\ANTI-POV\Anti-Poverty Strategy - Rev&Benefit Services.doc
Page 5
Created by John Frost
Revenue & Benefit Services
Document Outline
