Luton Borough Council used to have the dubious distinction of being in the top ten worst profiles for aged debt in Council Tax and Business Rates. Current revenues debt has since reduced by £13.8m.
At the end of financial year 2011/2012 total aged debt going back to 1991/1992 stood at a total £27million, and was growing by £2million per year — an average year by year increase of 2-3%. In 2008/9 collection rates were at a low of 92.5%. Now the collection rate is around the national average of 97% and rising. So, how did Luton turn their revenues recovery around?
The plan was based on moving to Capita's Revenues and Benefits Efficiency Version software and creating a dedicated team to focus on aged debt recovery. Using the functionality available both within the core system and by using optional modules such as RISC, Arrangement Manager, Recoverview and Capita Decision Support (CDS) provided the information needed to identify and target the worst debtors.
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