The document discusses Policy in Practice's work on analyzing and managing local and central government debt through the Reimagine Debt pilot program. The program aims to consolidate household-level debt data to offer holistic debt guidance. Initial pilots in Newcastle and Barking manually pooled debt data on 39 families. The program is now looking to scale up this approach by using analytics on pooled household datasets to identify vulnerable families, engage them proactively, and track outcomes over time. The outcomes of the Barking pilot found that average arrears fell by £1,100 across 21 households tracked over 18 months, reducing total rent and council tax arrears by £17,600 and £5,500 respectively.
2. We make the welfare system
simple to understand, so that
people can make the decisions
that are right for them
We help people toward
independence by making
government policy simple to
understand
3. A team of
professionals
with extensive
knowledge of the
welfare system
who are
passionate about
making social
policy work
We help over 80
local
authorities use
their household
level data to
identify
vulnerable
households,
target support
and track their
interventions
Our benefit
calculator engages
over 10,000 people
each day.
We identify the
actions people can
take to increase
their income,
lower their costs
and build
resilience
9. Cost avoidance through reimagine debt interventions:
• Court costs of enforcement and better collection
• Eviction (referred to panel) and care costs for children
(direct care costs and impacts of moving schools)
• Improved wellbeing and better mental health
outcomes (17% of cohort), e.g. lower GP / Medication
costs (no longer losing sleep, less anxiety, depression,
leaving the house)
• Advisors had impacts on other outcomes too, clients
could be suicidal, facing domestic violence, have
language barriers to overcome, or parental conflict
(parents with non-dependant children)
The impacts of indebtedness
10. • 1.6 million people on Universal
Credit today
• A further 1.6m people moving onto
Universal Credit this year
• 2 million people moving on through
‘managed migration’ from 2020
Key recommendation:
DWP and councils can identify these
pressure points, and act proactively to
prevent hardship and ease the
transition to Universal Credit
Universal Credit is rolling out fast
11. Reimagine Debt
Policy in Practice has been asked by the
Cabinet Office to analyse the management and
collection of local and central government debt
Building on the successful ‘Reimagine Debt’
pilot, looks at the role of data to generate a
consolidated household level view of debt.
Consolidated debt data, in the context of a household’s wider finances, can create a
culture of holistic, proactive and effective service delivery across local & central
government
In Phase 1 Newcastle and Barking and Dagenham councils manually pooled debt data
on 39 families to offer them debt guidance
Phase 2 looks at how this approach can be scaled up
12. We pool your datasets on
low income families, and link
them over time to create a
single view
Our policy engine shows
the impact of all policies,
now and in the future, on
each family
The insights enable you to
proactively identify who
needs what support,
engage people and track
impact
Household data + advanced analytics
21. Lessons learned in LBBD
Policy / legislative awareness: Look into the 3 cases where DHPs were refused. If households
affected by welfare reforms had been made aware of DHPs earlier, then arrears may have been
avoided.
Ensure take-up of benefits: many of the improved cases started claiming Housing Benefit and / or
Council Tax Support for the first time.
What counts as an improvement?: There are cases where arrears have worsened, but their lives
may have improved in other aspects (ie they have started work, agreed a payment plan). We need
to track these households over a longer time period.
Many of the improved households had changed utility provider: Is this a large opportunity, and does
it have implications for the involvement of third parties eg. utilities?
Consider differences in outcomes between Advisors: 90% of Advisor 3's clients saw their level of
debt improve - compared to 63% of Advisor 2's and 43% of Advisor 1's. Are different Advisors
taking different approaches, and can improved approaches be scaled?
22. We tracked the debt severity, living standards, financial resilience and other outcomes for 21
households across Barking and Dagenham across 18 months
• 3 households moved out of arrears completely
• Average arrears fell by £1,100
• Across the 21 households, the total rent arrears balance fell by £17,600 and the total council tax
arrears balance fell by £5,500
The outcomes of reimagine debt
Three main areas:- Software
Analytics
Policy
I worked on Universal Credit, Policy into Practice –
Make sure policy can be understood by people and organisation on the frontline.
Ensure policy is informed by practical experience on the frontline.
Analytics – Software – Policy
Wider reforms are all lumped into Universal Credit
BRADFORDGovernments may know how one policy affects many people. We can show how all policies combined affect one person.
We work with household level data from over 40 different local authorities to
Welfare reforms we model, and how accurate we are.