Please note the Appendices will be subject to regular review and update.

Appendices Corporate Debt Policy Contents Appendix 1 Debts owed to the council and prioritisation Appendix 2 Payment methods Appendix 3 Financial inclusion partnership Appendix 4 Bailiff Code of Conduct Appendix 5 Advice Centres Appendix 6 Advice leaflets Appendix 7 Complaints Appendix 8 Drafty Corporate Support Protocol Please note the Appendices will be subject to regular review and update. Appendix 1 Debts owed to the council and prioritisation The policy covers all debts owed to the Council, including but not limited to: Council tax Domestic rent (including former tenant arrears) Tenant freehold and leasehold debt Commercial rent Housing Benefit overpayments Business rates Trade waste Sundry debts, including residential and non-residential debts, unpaid fees and charges (nursery fees, truancy fees, work in default, library fees etc.) Legal costs Penalty charge notices (for parking fines) YHN residential related charges (e.g. heating etc.) The following are priority debts: Rent arrears as it can result in eviction Council tax as it can result in imprisonment Business rates as it can result imprisonment The following are non-priority debts: Housing Benefit overpayments Former tenancy rent arrears (YHN) Parking penalty charges and permits Repairs and maintenance (YHN)

Care at Home and Meals at Home Early education and childcare (nursery fees and school meals) Care alarms Pest Control Library publications Membership schemes (Love to learn) Hire of facilities Appendix 2 Payment Methods To ensure convenience and choice for the customer when paying for services, the Council offers a range of accessible payment methods which are summarised below: 2.1 Direct debit Direct debit is the easiest and most convenient way to pay and gives customer control. To pay by Direct Debit the customer will need a Bank or Building Society account. Not all services currently accept payment by Direct Debit. Please refer to www.newcastle.gov.uk for further details. 2.2 Via the customer s bank We accept payments via internet banking, our Bank details are: Branch: Cooperative Bank Plc., Newcastle upon Tyne Sort Code: 08-90-06 Account number: 61145043 Account Name: Newcastle City Council General Account Customers will need to quote their reference number to make sure payment is allocated correctly. 2.3 Standing order A standing order can be set up via a customer s Bank. 2.4 Swipe card Some services can be paid via a swipe card for example council tax or domestic rent. Customers can pay by cash or cheque at the Post Office, or by cash only at any PayPoint outlet.

2.5 Cash Payments can be made in person at Customer Service Centres (CSCs), rent can also be paid at Walker Centre, Churchwalk. Up to date information about CSC opening times and locations can be found at www.newcastle.gov.uk 2.6 Phone Payments can be made over the phone using a Debit or Credit card free of charge by phoning 0191 278 7878. Customers will need to have their reference number in order to make a payment. 2.7 Online Payments Customers can make an online payment with their credit or debit card. Not all services currently offer this facility. Please refer to www.newcastle.gov.uk for further details. 2.8 YHN Rent Payments When customers sign a tenancy agreement with YHN, one of their responsibilities as a tenant is to pay rent regularly and on time. Rent can be paid in the following ways: Direct Debit In person Swipecard Standing Order Telephone Post Pay a bill online on the Newcastle City Council website. QR code Personal Internet Banking For further information please refer to http://www.yhn.org.uk/housing_services/paying_your_rent.aspx Appendix 3 Financial Inclusion Partnership The Newcastle Financial Inclusion Partnership brings together 47 agencies that provide information, advice and assistance to help people to better cope with reduced income and increased expenditure. They have acknowledged the interrelated nature of issues related to money and financial inclusion. With that in mind, they have developed an integrated approach to information and advice that helps people to maximise income, reduce expenditure, keep their home and

access digital support. For example, by increasing access to affordable credit rather than just tackling problems associated with excessive debt. Their learning over the last two years has been to build on this approach to create a solid foundation for financial inclusion information, advice and support in the city. Their aim is to have a sustainable and embedded approach which can make a meaningful difference to local people s lives. This gives them a stronger chance of encouraging people to request support earlier and to deal with problems before they reach crisis point, which in turn will have better outcomes for mental health and wellbeing. A key element of this approach is providing consistent, coordinated information for use by all partner agencies in the city. They have carefully considered the reasons for producing information, together with who the audience is, so that our messages are targeted and have the best chance of reaching the right people at the right time. Appendix 4 Bailiff Code of Conduct 1. Introduction 1.1 This code of practice sets out procedural and other standards for any contractor employed by Newcastle City Council to assist in the recovery of debt due to the Council. 1.2 It relates to action taken during personal visits, in telephone calls, correspondence or any other communication relating to a debt due to the City Council. 1.3 The City Council is committed to tackling social exclusion and any contractor acting for the Council must recognise the following: 1.3.1 The recovery process must not cause undue hardship. 1.3.2 Operations must be structured and able to distinguish between those who find difficulty in paying and those who wilfully refuse to pay. 1.4 Correspondence must be in plain English and standard letters and forms approved by the City Council. 1.5 All contractors acting for the City Council must act within the law and the guidelines set out by the City Council. Any instructions issued by any officer to the contrary should not be complied with and ought to be reported back to the Council s nominated officer or to his/her manager.

1.6 Any person attending a property must carry photographic identification showing that he/she is authorised by the person for whom he/she is working to act on his/her behalf. They must follow any legal requirement for introducing themselves and producing identification and authorisation to act for the Council. 2. Collection of amounts due 2.1 Payment arrangements may be made and the reasons stipulated in any report. Guidelines for subsequent arrangements are the same as those for initial arrangement. 2.2 The collection agent must try to make an arrangement for periodic payments which will clear the debt within six months. If a debtor claims financial hardship and cannot afford to pay the debt within 6 months the debtor will be given the Council s financial statement to complete and a list of debt advice agencies available. The bailiff agency will use the same affordability assessment principles as the council and YHN. 2.3 No charge should be made to the debtor or the Council for costs associated with arrangement to pay. 2.4 The collection agent may return at a specific date in order to obtain payment or make an arrangement, a letter should be left on the first visit indicating what has been done and what might happen if there is no subsequent offer of payment. 2.5 The Council recognise that there are circumstances where debtors may be particularly disadvantaged and in some cases unable to deal with repayment of their account without additional assistance. There is no straightforward way to determine vulnerability and individual cases will need to be determined on their own merits. The following groups are those that may fall into the vulnerable area:- (a) (b) (c) (d) (e) (f) (g) Elderly and / or infirm Physically or mentally disabled person(s) Have a medical illness that may impair their ability to manage on a day-to-day basis Persons suffering from a serious or long term illness Illiterate individuals and individuals for whom English is not their first language Recently bereaved person(s) Single parents

(h) (i) (j) Pregnant women Victims of domestic abuse People in serious financial hardship and people facing imminent crisis (e.g. repossession and eviction) If vulnerability is identified then the bailiff dealing with the account should seek to take a more understanding approach, judge the requirement of each case on its individual merits, and consult with the Council where appropriate to agree whether the account needs to be returned to the Council. Where possible the bailiff should endeavour to adhere to the criteria set out within this Code of Practice. However, if the circumstances dictate that a payment arrangement is to fall outside these criteria, then the bailiff should consult with the Council before finalising any agreement. These cases must be handled with extreme sensitivity. In particular, if it is felt action would cause undue hardship or the debtor has extreme difficulty understanding what might happen or has happened, the matter should be referred back to the Council as no or insufficient effects. 2.6 The Contractor must still recognise that the Council is committed to tackling social exclusion and must still comply with the guidelines contained it the introduction to this Code of Practice. 2.7 Some costs for collecting money may be met by the debtor (e.g. cost of a credit card transaction or a bank Giro payment). These must not exceed the costs agreed from time to time with the Council s nominated officer. 2.8 No visits shall be made before 7.30am to after 9.00pm unless on the instruction of the Council s nominated officer or his/her manager. Any request to visit outside these hours must include the reasons for doing so. 2.9 When a collection agent visits a debtor there must be a phone number available for him to contact his/her office if support or advice is required by him or any person he is visiting. This includes times when the agent is working outside normal office hours. 2.10 A translation service must be provided by the contractor when requested where a debtor s first language is not English. 2.11 Documents must be available in audio, braille or in large print. All documents left should indicate this and state how the person to whom the letter is addressed can obtain a copy.

Appendix 5 Advice Centres If a customer has a problem with debt it is important not to panic but it shouldn t be ignored either - it won t go away. Every year in Newcastle hundreds of people work with a debt adviser to deal with their debts. Customers with a debt need to take action or they could end up losing out financially or getting into deeper into debt. There may be a risk of further enforcement action being taken, for example by the court and bailiffs. Newcastle Citizens Advice Bureau and the council s Council Tax, Welfare Rights and Money Matters teams are working together to help people manage their council tax payments and other debt. The Council wants to help customers through difficult times and can put in places things like payment plans, or help you maximise income through benefits to help resolve debt problems. There are also a number of organisations that can provide independent advice. Please visit any of the websites below to find out more information Help available from the Council to prevent or respond to a money crisis There is a variety of practical help available, some of which has eligibility criteria. Housing Benefit and Discretionary Housing Payments towards rent www.newcastle.gov.uk/housing/housing-benefits/housing-benefit-0 and www.newcastle.gov.uk/benefits-and-council-tax/benefits/discretionaryhousing-payments Council Tax Support and discounts to reduce council tax payments - www.newcastle.gov.uk/benefits-and-council-tax/benefits Energy Best Deal check to help people to find a cheaper energy deal - www.newcastle.gov.uk/ebd Free school meals - www.newcastle.gov.uk/education-andlearning/grants/free-school-meals-frequently-asked-questions Crisis Support Scheme (CSS) provision of food, clothing, fuel for heating and expenses for emergency travel to cover short term periods of crisis or disaster - www.newcastle.gov.uk/css Supporting Independence Scheme (SIS) provision of basic household goods to help sustain independence and prevent homelessness - www.newcastle.gov.uk/sis

YHN Advice and Support Team There is a dedicated team within YHN offering benefits advice; debt counselling; help moving into your new home; and advice on rent arrears problems. Customers can contact the team via an online request form, or by visiting a community housing office. Free debt advice There are several organisations that provide trustworthy free debt advice to residents. They can be accessed in a variety of ways: online, by phone or faceto-face. Online and telephone debt information and advice is provided by: Citizens Advice Bureau (CAB) - www.adviceguide.org.uk, phone 0844 245 1288 DAWN Advice - www.dawnadvice.org.uk, phone 0300 333 3445 Payplan - www.payplan.com, phone 0800 716 239 StepChange Debt Charity - www.stepchange.org, phone 0800 138 1111 Local telephone and face-to-face debt advice is provided by: Newcastle Debt Advice Line (shared between Newcastle CAB and the Council s Money Matters team) phone 0191 278 2774 Monday to Friday 9.30am to 11.30am and 1pm to 3.30pm (except Wednesday mornings) Targeted debt advice for people at risk of homelessness through eviction or repossession phone line and drop-in sessions at the Housing Advice Centre. For further details, visit www.newcastle.gov.uk/housing/housingadvice/housing-advice-centre

Appendix 6 Advice leaflets 6.1 Are you worried about money leaflet May 2013

6.2 Borrow Wisely Leaflet March 2013

6.3 Replacement Social Fund Leaflet March 2013

Appendix 7 Complaints We aim to provide high-quality services for all our customers. But we realise that things can sometimes go wrong, so we need to know when a customer is not happy with our service. We see any complaint as an opportunity to improve our service. What is a complaint? A complaint is when a customer tells us they are not happy. For example if: we do not deliver a service on time; we give the wrong information; the customer receives a poor-quality service; or the customer has a complaint about a member of staff. Our promise to you We are committed to putting the customer first and providing a quality customer service. This includes dealing with any complaint they may have. We will deal with any complaint quickly and fairly. We will tell the customer what is happening with their complaint and will do everything we can to help them. We will do our best to treat the information the customer provides in confidence. We will explain our decision. We will use complaints to review and improve the way we provide services. The customers right to a council service will not be affected if they make a complaint. How do I make a complaint? Complaints can be made in person, by phone, by letter or E-mail. If preferred, the customer can ask a friend or relative to speak or write to us on their behalf. In any contact, it is important the customer: Provides their name, address, and phone number; and tells the person they speak to what their complaint is. If a complaint is about a member of staff, it should be directed to the manager, not to other members of staff.

Complaints Officer Newcastle City Council Civic Centre Newcastle upon Tyne NE1 8QH Phone: 0191 211 5116 Email: complaints@newcastle.gov.uk If you feel unhappy at any stage with how the City Council is dealing with your complaint, you can ask the Commission for Local Administration in England - known as the Ombudsman - to investigate the matter. YHN Complaints Customer Service Team YHN House Benton Park Road Newcastle upon Tyne NE7 7LX Phone: 0191 278 8600 Email: yhnccc@yhn.org.uk

Appendix 8 Draft Corporate Debt Support Protocol Please note that this protocol is still being developed y the Newcastle Advice Compact and is not yet finalised. 1. Summary This policy describes how we will work to prevent debt and support people who get into debt to the Council. This complements the Corporate Debt Recovery Policy, which describes how the Council will develop a single approach to recovering debt. The policy aims to facilitate a consistent approach to providing support which will help prevent people accruing priority debts to the council. This is made up of two parts: i. The Common Financial Approach (CFA) which facilitates a common approach to supporting people to meet their priority debts, and: ii. The recommendation of a consistent process for responding to people who do get into debt with the Council. This includes: a. The Common Financial Statement (CFS); b. Guidelines for people who are facing serious financial hardship. 2. Why do we need this policy? There are currently several strands of debt owed to the Council and it can be confusing for clients and their advocates trying to support people to cope with these debts. Similarly there is not a consistent approach to helping people understand the importance of paying their priority debts or of responding to those in debt. This report focuses on complementing the Corporate Debt Recovery Policy, to help people avoid priority debts. The non payment of priority debts can lead to loss of housing, freedom, fuel supply and essential goods, for example, rent, council tax and fuel arrears. Further information can be found here: Priority debts 1. It can be hard for people in debt to know what to do and what offer of advice to trust in the face of expensive advertising encouraging them to take on more debt. The Council recognises these difficulties and believes that people are best helped by being honest that we have to be fair to everyone and of the need to support people to prioritise the payment of their rent, utilities and council tax. We understand it can be hard for people to juggle competing priorities and want to help them meet their obligations in difficult times by: 1 http://www.adviceguide.org.uk/scotland/debt_s/debt_help_with_debt_s/dealing_with_priority_debt s_scotland.htm#which_debts_are_priority_debts

Making the prevention of debt everyone's business; Preventing further debt problems by offering suitable payment options; Protecting and supporting vulnerable customers; Maximising the use of discretionary funds to support people in crisis; Maximising income e.g. through employment opportunities and benefit maximisation; The aim is to prevent excessive debt by promoting financial inclusion and budgeting to reduce the impact of poverty. This should help the positive support provided in the city to focus on supporting their clients to prevent debt rather than advocating against action being taken once the debt has accrued. This has been developed in partnership with the Newcastle Advice Compact and our work to increase financial inclusion by encouraging consistent conversations about the support available and the positive alternatives to more expensive options e.g. promoting credit unions as an alternative to payday loans. Corporate Debt Support is divided into two related areas: 3. a. Common Financial Approach (CFA) This facilitates a common approach to supporting people to meet their priority debts. It will make it easier for front-line staff to help people to prioritise their money management. The Council s Active Inclusion Unit (AIU) coordinates the provision of financial inclusion information, briefings, training and advice to make it easier for support providers with other specialisms to help their clients become financially included and to avoid the consequences of the nonpayment of priority debts. We know that financial problems are best prevented by increasing financial capability. However we also know that this is difficult when people are faced with conflicting messages and constantly changing tariffs and benefit entitlements. Therefore the AIU will work with partners, to develop a consistent approach that will provide: Trigger point conversations and answers to frequently asked questions for support providers to routinely raise debt and financial inclusion with their clients; (see appendix 1) Briefings to support teams on the promotion of debt awareness and money management skills to promote the prevention of debt; Information and weblinks on how people can help themselves and of Newcastle s financial inclusion offer see www.newcastle.gov.uk/welfarereform; Training for front line staff on financial inclusion and money management; The development of collaborative approaches to reducing poverty through our financial inclusion seminars; Self help materials e.g. budgeting guides

Information on where to get expert advice when people get into trouble (see appendix 2 for Financial Inclusion Debt Toolkit 2 ); Monitoring to help people see what makes a positive difference, where the gaps are and what we need to do differently. The CFA is being developed by piloting the approach with the learning disability, children s social work, Family Intervention and Sure Start teams, this started in November 2013. This will then be extended to other partners. In addition the Council will continue to provide proactive support to people in arrears. This will include continuing the close work between the Council s Revenues and Benefits and Money Matters debt advice team with Newcastle Citizens Advice Bureau to improve council tax collection. This resulted in the Council formally adopting the Local Government Association s Good Practice Guidance in the Collection of Council Tax Debts, the establishment of drop-in sessions for people in council tax arrears and the promotion of free and trusted debt advice agencies within the council tax correspondence. Where the Council and YHN provide services to people such as, for example, home improvements and nursery places, the Council will endeavor to assess whether the client can afford these services before providing them to ensure that people can afford to pay and to promote budgeting to enable people to access these services. 3. b A consistent approach to negotiating repayments with people in debt The approach consists of two parts: i. Common Financial Statement (CFS) The CFS should be used by the Council, Your Homes Newcastle (YHN) and the Council s debt collection agents as a standard income and expenditure statement to be used in assessing debtors ability to pay. All departments are encouraged to use the standard CFS compliant income and expenditure statement. The CFS is the budgeting tool that is used by the majority of debt advisers and creditors to assess debt repayment offers. The CFS provides an accurate overview of debtors income and expenditure and gives creditors confidence about how proposals have been calculated as any unreasonable expenditure would have been challenged. The CFS contains preagreed levels for discretionary household expenditure called trigger figures. The trigger figures are calculated using research from the Government s Living Costs and Food Survey that is based on a random sample of lower-income UK households. 2 http://www.newcastle.gov.uk/benefits-and-council-tax/welfare-rights-and-money-advice/debtand-money-advice-0

The CFS is widely used by the free and independent debt advice agencies and the credit industry. The Insolvency Service uses CFS to assess Debt Relief Order (DRO) applications. The CFS is also referred to in the Lending Code, the Office of Fair Trading (OFT) Debt Management Guidance, the Individual Voluntary Arrangements (IVA) protocol and the Money Advice Liaison Group (MALG) Mental Health Guidelines. Further information about the CFS can be found at the Money Advice Trust website 3. Repayment plans to pay debts owed to the Council should be based on sustainable budgets that can stand the test of time. The CFS based financial assessments facilitate this and ensure that priority creditors take precedence over non-priority creditors. ii. Negotiation guidelines for people who are facing serious financial hardship. Many people who owe priority debts to the Council are in receipt of means-tested benefits and low wages and are left with very little to live on. For people on income-related benefits in debt upon request the Department of Work and Pensions (DWP) can apply a standard Third Party Deduction (TPD) rate that is currently set at 3.60 per week for repayments of council tax and rent arrears. This is in many cases the appropriate minimum repayment amount. However for some people who are on the verge of serious financial hardship the standard TPD rate of 3.60 may put them and their health and wellbeing at risk and bring about an eat or heat dilemma. In these cases a lower rate of repayment may be agreed. It is recommended that where debtors have less than 30% of the CFS maximum trigger figure housekeeping allowance (food and clothing) the Council supports those people by agreeing to accept repayments of less than the standard DWP TPD rate for payments of priority debts. These debtors should complete a CFS income and expenditure statement so that the Council and YHN can make a sustainable agreement for debt repayments. If the debtors do not engage or default on the arranged payments the Council and YHN will then have no option but to apply for the DWP TPDs at the standard rate. For people with non-priority debts to the Council who are in extreme hardship consideration will be given to suspending the collection or writing off the debts. In the debt collection process the following will be considered: Where there is a benefit application pending the recovery action is put on hold Where the debtor reports financial difficulties the debt recovery will be put on hold for 28 days to give the debtor time to get debt advice. For rent arrears and council tax arrears the debtor should be advised to pay the ongoing charges where possible as they are priority debts. 3 http://www.cfs.moneyadvicetrust.org/

Where a debtor has been overpaid Housing Benefit and they are in receipt of Housing Benefit for their ongoing rent charges, the Council will not apply the standard rate of recovery (currently set at 10.80 per week nonfraud cases) without trying to establish the debtor s financial position and assessing affordability. 4. Monitoring and maintenance of the policy The AIU will monitor and maintain this policy to ensure that information is kept up to date. Engagement with partners and the identification of potential changes will continue through the Newcastle Advice Compact and Financial Inclusion Partnership.