Deven Ghelani, Policy in Practice, was invited so speak at this year's Utility Week conference on the subject of debt and vulnerability.
He outlined the policy landscape that has lead to some working age households being worse off by over £40 per week by 2020.
As well as referencing innovative work being done by Cambridge City Council and South Staffs Water, Deven outlined practical software tools that utility companies can use to identify and support vulnerable customers.
For more details visit www.policyinpractice.co.uk, email hello@policyinpractice.co.uk or call 0330 088 9242
Utility week 2018: Customer Solutions: The debt landscape in response to a changing policy environment
1. Policy in Practice
Deven Ghelani Customer Solutions: The
debt landscape in response
to a changing policy
environment
Utility Week 2018
2. Agenda
• About Policy in Practice
• The impact of policy changes on low income households
• National and local initiatives to help support vulnerable consumers
• How we help the utility sector to identify and support vulnerable consumers
3. We make the welfare system
simple to understand, so that people can make
the decisions that are right for them
4. About Policy in Practice
Welfare Reform The Observer Policy
national impact
impact
Analytics
local impact
Software
individual
impact
5. Working age households
are hit hardest at £41.45 per
week
The main drivers are the
benefits freeze, losing
£33.54 per week on average,
rising rents and living costs
(2.4%) and the combined
impact of multiple reforms
hitting the same family.
People are going to be worse off
6. Universal Credit and other changes
Losses are not fully mitigated through
the National Living Wage, Personal Tax
Allowance, or Discretionary Payments.
Budget changes to Universal Credit
improve the situation.
• Ending 7-day wait
• Two week HB run-on
• Twelve month advance payment
• 63% taper & Living Wage
• Universal Credit on the frontline
It’s a complicated area - we can help!
8. Increase the reach of your social tariffs
• Capture your social tariffs into a single holistic assessment tool accessible
through GOV.UK.
• Use the tool and empower advisors to provide holistic support, making it
more likely that they will be able to repay in future.
• Work with local authorities!
• Use their administrative data to target support tariffs to vulnerable
consumers, including those less likely to reach out for support.
• Learn more about national initiatives to match data with central government.
10. Cambridge City Council’s
partnership with South Staffs
water
Connected to DHPs:
£55k to 210 people
Removed the income
threshold
Great partnership
Work with local authorities
11. • 36,443 low income families
Proactively target support using admin data
12. • 36,443 low income
families
• 217 families with
children, with a
disability who are in
arrears
Proactively target support
13. • 36,443 low income families
• 217 families with children,
with a disability who are in
arrears
• Drilldown to get a single
view or support, arrears
and barriers to work
Proactively target support
14. • 36,443 low income families
• 217 families with children,
with a disability who are in
arrears
• Drilldown to get a single
view or support, arrears
and barriers to work
• Link into a financial support
tool
Proactively target support
15. Safeguarding Tariff /
Warm Home Discount:
• Data sharing between the DWP
and licensed gas and electricity
suppliers.
• Good initiative – how is it
working? Could be more
proactive and holistic!
Re-Imagine Debt:
• Central government initiative to
link data across local, national
and utility providers.
Central government initiatives
16. Summary
• Universal Credit is rolling out, and rolling out fast
• The ‘real’ impact due to rising rents and the benefit freeze is significant,
putting pressure on consumers ability to pay
• We can help you to work proactively to make better use of public datasets, to
raise awareness of social tariffs and better target support
• Your vulnerability teams can check eligibility and increase take-up of support,
and work proactively with local authorities, making is more likely customers
will be able to pay their bills
• There is a lot going across the utility sector, and other sectors. talk to us if you
think your support for vulnerable consumers could be better targeted
N
Make government legislation relevant to people
Not just legislation, includes social tariffs affected by regulation
Identifying and supporting vulnerable households. And FIC. And UC.FIC says that vulnerability is a key issue that can be tackled through data. - pat them.on the back, you are providing data into CRAs / Some, letting them access mainstream credit. We are exploring how we do the same with benefits data.Fuel poverty / low income tariff / warm home discount.Who puts theirs hands up vs who needs it? Cambridge - Cambridge water / passport to DHP applicants. Show DHP targeting.Worked with utility companies on the past to design xyz, but want to coordinate and make sure support gets to those that need it most.You need SHBE data to identify and target. Where this isn't possible, v3!So advisors are prompted - struggle to spend.
£48.10 per month under legacy.
25% or personal allowance (if in work) 15% if out of work, but shared with other attachments, now a lower priority to rent.
Naomi and Cambridge water PIC
Using Benefits data to identify households eligible for the safeguarding tariff.
This is already happening – key points from the consultation response.
Price protection for an SVR after three years.
Cabinet office and BEIS / Enable data matching
Reference Trust for London /
DWP and suppliers - £140 or so
LINDA FIDDLER // Cabinet office // DEBT rules