Glasgow Housing Association www.gha.org.uk Andy Ashcroft Area Director (East) Sustaining Tenancies early intervention for rent arrears Better homes, better better lives lives 7 February 2012
Our Arrears Journey- Where we were in 2007/8 with our rent collection 2007 Communities Scotland inspection report noted our performance in collecting rent was poor and worsening Since stock transfer we had failed to collect 26m (current & former tenant debt) We needed to fundamentally alter our approach and fast! 23,000 tenants in rent arrears Our business systems, not people, drove action for recovery: 8,000 Notice of Court Proceeding 6,500 Court Callings 1,000 Decrees for Eviction 575 Evictions-Leaving 1million of debt Lack of credibility with the Courts lots of activity, but wrong outcomes for customers and the business? 2
Where we were in 2007/8 the systems picture on rents GHA Lost Sight of Purpose? Push Customers through the Court system Not collect rent or reduce arrears Did Not set tenants up to succeed or sustain No assistance for customers with Housing Benefit Issues No upfront discussions about rent/ability to pay No Payment profiles/plans Staff chasing rent arrears Reliance on letter for contact no face to face Limited Payment Methods Too many court actions for little outcome We needed to fundamentally alter our approach and fast! 3
The Vanguard Method Vanguard were established 1981 by John Seddon In 1994 John developed a lean-service model for the service industry Most of their consultants have a background in Occupational Psychology They currently employ around 40 Consultants John has also published several books on Quality and Management Thinking: I want you to cheat, Freedom from Command and Control ; Systems Thinking in the Public Sector The Vanguard Purpose to add value to the client Building towards Accreditation of our Managers and Business Improvement Leaders
We Changed the way we did our Business System Redesign Capital Works Repairs Voids Allocations Homelessness GHA(M) Complaints Rental Income Housing Benefit Former Tenant Debt Legal
System Redesign Common Systems, Common Sense 3 week intervention in local offices Managers leading the experience Manager s walked through our processes (on the shop floor) the customer journey Targets drove the wrong behaviour (118 example cheating but achieved) Lost sight of our purpose: Let Houses/Collect Rent/Repairs as requested We captured why our customers were contacting us (demand analysis): In all business areas failure demand (waste) exceeded on average 70% Waste: I don t know how much rent to pay Value: I want to pay my rent FINDINGS: - we did not make it easy for customers and they were not our focus - Our staff were dealing with waste rather than value work = happy customers
Redesign: Design IN value, design OUT failure Switch emphasis to front end and away from legal process: Pre tenancy support affordability Early and personal action if things go wrong Range of Payment Options Payment profiles to include: how much, when, by what method, benefits True partnership working with City Council (benefits & homelessness) Remove targets that drive the wrong behaviours & count what counts to the customer! Put the customer at the heart of everything we do Frontline staff measure what matters to the customer Demand Analysis Consistency of approach (doing what we say, when we say, every time!) We get the work in clean all information to improve process times 7
System Redesign (cont d) We have expertise at the front end We aim to reduce hand-offs and deal with customers one and done We have new end to end measures related to the whole system KPIs are discussed at Senior Management level Consistent service provision learn from the best!
Helping Customers to Sustain their Tenancies Affordability discussions at - Housing Application/Offer/Sign Up Starter Packs/Welcome Bags New Void Standard Clean HB applications at Date of Entry and delivered to Rev Bens Partnership with Glasgow City Council Secure scanning and Verification Increased Payment methods; Chip and Pin, online and 24 hour CSC Welfare Benefits and Fuel Advice Service; maximising customers income Early (face to face) contact when payments missed Affordable repayment arrangements Effective Collections Training Pre Eviction Senior Management Arrears Panel meetings Annual Rent campaigns - Rent Don t Make it a problem - Rent First - Rent Matters
Rent Matters Leaflet
Radio Advert - Sample
Helping to Sustain Tenancies Managers involved in the work NPRP Authorisation (last resort) Effective Collections Training all staff Waste/hassles for staff and customers In house Debt Recovery Team to support frontline recovery activity - significant contribution to cleansing historical debt. Partnership working with RBC Managers locally and at senior levels to improve performance for customers Increase in DWP applications and maximise DHP applications CIH/Housing Advice and Information training programmes for staff Local Office Visual Measures Board meetings: - CSCS performance discussions/staff share learning - continually review processes and escalate to BEST groups to remove
Sample VMB
CSCS Measures We focus on end to end times: Notice of Tenancy Termination to First Accepted Offer Notice of Tenancy Termination to Relet Selection to Reselection Date of Entry to First Payment in Account - All Payments - Cash Payments - Housing Benefit
Winchart Example
NPRPs authorised March 2008 to Dec 2011 700 600 500 number of NPRPs raised 400 300 200 new financial year 09-10 new financial year 10-11 new financial year 11-12 100 0 period 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 19
Evictions 2007-08 to 2010-11 700 600 575 E v i c t i o n s 500 400 300 391 200 164 148 100 0 2007/08 2008/09 2009/10 2010/11 Financial Year 20
Striving for Continuous Improvement Organisational Review/Think Yes - more empowered front line staff working end to end - focus on customer satisfaction Shelter Pilot In house Money Advice Service from April 2012 New mandatory programme for all staff and key suppliers GHA first Vanguard accredited centre in UK Preparing for Welfare Reforms
Wider Tenancy Sustainment Better Homes Better Lives 1,107 tenants provided with fuel tariff advice - 129,000 tenant savings made. 94% of tenants surveyed rated the service good / very good 2,091 tenants supported to access money advice / financial capability services. 1,320,000 financial gain achieved for tenants Promoting Employability - Modern Apprentice Programme (30) 2011/12 Maximise jobs and training opportunities for Glasgow residents - 258 Community Janitor Programme 85% from GHA households - 112 trainees moved into work 73 from GHA households
Our performance context From inspection to January 2012 Sitting Tenant Rent arrears reduced from 5.14% in 2007/8 to 3.09% Current tenant arrears down from 10.1m in 2007/8 to 4.89m End to End re-let time down from 56 days in 2007/8 to 15.57 days for lettable property Letting performance is the best since inception of GHA lets within 4 weeks was 49.07% for the year 2007/8, now 86.58% Tenancy sustainment levels improved - 2007/8 = 84.95%, now 88.50% 23
GHA Tenancy Sustainment Levels
QUESTIONS/DISCUSSION