While Covid-19 has undoubtedly meant many households are struggling to pay their council tax, arrears levels were already on the rise long before the outbreak. A recent report by Money Advice Trust explores the problems that persist within the current systems of council tax collection, as arrears levels reach a record-breaking £4.4 billion in England alone.
Money Advice Trust’s research shows more than 7 million people in Britain (14%) are worried that they won’t be able to afford their council tax bills over the coming year – and £4.4 billion is already owed in unpaid council tax.
Reviewing a customer's affordability will help to understand what they can afford to pay today. A completed budget will also show what outgoings they have including other debts, these can be discussed to identify areas where reductions can be made and also where non-priority debts are being paid before their council tax.
The operational overheads and burden associated with completing the SFS Income and Expenditure have a direct impact on your resource. By using IE Hub the customer is guided to share this information ahead of your call meaning you have a clear picture of the customer's affordability without a long and complicated convocation. This information can be used to set up a sustainable payment plan with the customer.
Our users tell us they prefer to work in this way….
• 71% of customers said they were better able to set up a payment plan after using IE Hub
• 83% of customers said they had a better experience with creditors who user IE Hub
• 94% of customers have maintained the payment plan they set up using IE Hub
*IEHub customer survey Q2
Letting the customer complete their own I&E allows them to better understand their finances and builds ownership of the debt repayment. IE Hub also allows the customer to share their I&E with multiple creditors which improves customer engagement and benefits you as a community member.
Joining IE Hub is quick, easy, and does not require any IT resources to set up.
For more information on how IE Hub can support your collections process, contact Poppy Muir.