1. Introduction
1.1 Norwich City Council aims to provide the most efficient and responsive service to maximise rent income from residential and garage tenancies and prevent / reduce arrears for the benefit of all our tenants. The council is committed to providing a high quality, reliable and accurate service for tenants and leaseholders. We will maintain and sustain tenancies by offering support and advice and will maximise the uptake of welfare benefits for tenants suffering financial hardship. We will be sensitive to customers’ needs but will pursue recovery action that is proportionate and fair, wherever necessary.
1.2 The recovery of Former Tenancy Arrears policy will assist the council to meet its corporate plan objectives; by reducing debt level and maintaining revenue it will contribute to the corporate themes of creating a fair, prosperous, and vibrant city. This follows the recovery from post covid pandemic and recognises challenges with cost-of-living pressures.
1.3 When a tenant vacates a property leaving a debt on their rent account, the debt they owe Norwich City Council (NCC) becomes former tenant arrears (FTAs). This document sets out the policy for dealing with these debts. It is the intention to minimise FTAs through good handling of current arrears; however, a certain number of FTAs will inevitably accumulate. We will investigate the reason for the arrears and where possible take necessary action to recover the debt.
2. Relevant legislation
2.1 The Regulators’ Code
2.2 Legislative and Regulatory Reform Act 2006
2.3 Housing Act 1985
2.4 Housing Act 1996
2.5 Human Rights Act 1998 and the European Convention on Human Rights
2.6 UK General Data Protection Regulation and Data Protection Act 2018
2.7 Children Act 2004 and related safeguarding legislation.
2.8 Care Act 2014
2.9 The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020
3. Policy details
3.1 Scope of the policy
3.2 This policy applies to all former tenants of NCC residential and garage properties who leave owing rent arrears or other related debts to the Council.
3.3 The council will have a sensitive but firm approach to collecting rent and other charges owed after a tenancy or contract ends. We understand that debtors’ circumstances change for a variety of reasons, and this often makes it difficult to pay debt owed.
3.4 Norwich City Council is committed to equality for all who owe money through the delivery of accessible, fair services, as an employer, contractor, and a community leader. The council celebrates diversity, and the contribution different groups make to the vibrant city of Norwich. This is about making sure we and the services that we contract out do not discriminate against someone because of perceived difference.
3.5 The council will pursue all possible avenues of recovery including those which may involve legal remedies. Legal action will only be taken when all other means of recovery of debts have been considered.
3.6 This policy has been formally adopted after consultation with stakeholders and customers.
3.7 To ensure that all customers are treated fairly and consistently
3.8 We will achieve this by:
- Promoting the rights and responsibilities of persons who owe debt through clear and consistent messages, actions, and regular and clear information.
- Offer signposting to all customers who are struggling to repay debts owed.
- Use appropriate communication methods based on information we hold
about the customers’ needs. - Regularly review and update policy and procedures in line with legislations to provide a fully inclusive service to all customers.
3.9 To substantially reduce the debt owed by former tenants
3.10 We will achieve this by:
- Regularly reviewing and implementing new technologies available in the market to improve methods of payments.
- Norwich City Council will minimise the amount of arrears becoming former tenancy debts by taking early action to prevent the accrual of debt whilst the tenancy is active.
- Reviewing and procuring alternative delivery methods where they will add value.
- Make contact attempts at the earliest opportunity with the debtor to plan for repayment. Early contacts will provide the most relevant contact details resulting in a higher possibility of negotiations taking place.
3.11 To develop high quality staff with clear goals and priorities
3.12 We will achieve this by:
- Supporting staff through training, performance appraisal and ongoing review.
- Training staff in all aspects of debt and its impact and ensuring that staff are knowledgeable in partnership working to support customers. Our external debt collection agency partners will provide this training to ensure we use current techniques, align with current legislative requirements, and maximise income.
- Involving staff in the development of high-quality services.
- We will benchmark our performance with all local authorities via Housemark yearly submissions and regularly review the Housemark Pulse reports.
- Sharing individual and team good practice to encourage consistently high standards of customer care.
3.13 To provide criteria for writing off former tenancy arrears
3.14 We will achieve this by:
- Setting out the procedure for identifying cases suitable for write off and reviewing this on a regular basis.
- Criteria for writing off debts will follow Council wide guidance on the recovery of debt owed.
- Ensure that debts are written off once all reasonable attempts have been made to recover. Should the circumstances of the debtor change, debts can be written back on at any time and recovery action will recommence.
3.15 How we will achieve our ains and objectives
3.16 We will:
- Provide the tenant/s with the date and circumstances under which their liability for rent ends. Information will be provided in writing either by letter or email determined by the preferred method of contact for the customer.
- Customers who require adjusted communication methods will be identified from records held by Norwich City Council and information will be tailored to support their needs.
- Provide regular training and coaching for staff to allow them to discuss debt in a firm but sensitive manner.
- Review and implement technologies which allow staff to vary communication methods so to maximise the possibility of recovering debt owed.
3.17 This will involve:
- Sending liability ending notifications at the earliest possible opportunity and ensuring that all reasonable attempts have been made to deliver the information to the current location of the tenant.
- Investigating and updating all held records for a debtor to reflect their support or adjustment needs. Where a need is identified, ensuring subsequent communications are relevant and appropriate.
- FTA recovery will utilise all in-house staffing, systems, and resources to recover debt owed. Where these avenues are exhausted, debts will be considered for referral to external agencies in line with the non-commercial debt policy and corporate policy regarding debt management.
3.18 If a debtor fails to maintain an agreement with us for repayment:
- We will continue to encourage them to contact us to discuss the circumstances leading to the broken arrangement and discuss an affordable and sustainable agreement at any stage and to find alternatives to legal action wherever possible.
- We will offer signposting to external agencies who can assist with debt management and support needs.
- Where necessary we will take legal action to recover debt. We will explain the legal rights to the debtor/s before action begins.
- We will, where appropriate, use alternatives methods for collecting debt.
- We will support the Housing Options policy regarding any outstanding debt and the affect this will have should they require further social housing.
4. Review
4.1 We will review this Policy to address legislative, regulatory, best practice or operational issues.
Published: August 2024
Next review date: August 2026
