Background and Context
The case involved a family facing significant financial challenges, particularly council tax arrears of over £5,000. The family consists of the customer, her husband, and their 19-year-old son, who is disabled and requires significant care. Carer’s allowance is received due to their son’s condition. Despite the Local Authority’s (LA) efforts in profiling and segmentation, the customer had not engaged sufficiently to resolve the arrears.
Initial Encounter
The situation came to light after the customer received a letter from the Welfare Together, prompting her to reach out. A conversation with the customer revealed that the family might be eligible for specific financial reductions, which had not been previously applied to their account.
Upon further talks with the customer, Welfare Together identified that the family could benefit from the following:
Disabled Band Reduction – Given the home adaptations made for their disabled son, including a lift, the family was potentially eligible for a disabled band reduction on their council tax.
Carers Disregard – The fact that both parents receive carer’s allowance suggested eligibility for a carer’s disregard, which had not been considered before.
Intervention and Support
Welfare Together took the following actions to assist the family:
Guidance and Form Submission – The customer was guided to complete the necessary forms for both the disabled band reduction and the carer’s disregard. Welfare Together ensured these forms were submitted promptly to the council.
Liaison with Local Authority – Welfare Together communicated directly with the LA to expedite the assessment of the family’s eligibility for these reductions.
Outcome
The intervention led to a significant reduction in the family’s debt:
Debt Reduction – The council granted both the disabled band reduction and the carer’s disregard, resulting in a total debt reduction of £4,142.11. The remaining balance on the account was reduced to £857, making the debt much more manageable for the family.
Key Takeaways
Importance of Direct Communication – Direct communication with the customer was essential, allowing Welfare Together to identify specific needs and offer tailored support. This interaction uncovered eligibility for financial reliefs that had not been applied, leading to a significant reduction in the family’s debt.
Personalisation of Services – Understanding the unique circumstances of the customer, particularly the care needs of their disabled child, was crucial. This personalised approach enabled the family to access benefits they were entitled to but had not previously received.
Gaps in Profiling and Segmentation – The case highlights the limitations of relying on segmentation and profiling to engage customers. These methods may miss the nuances of individual cases, underscoring the need for direct human intervention, especially for vulnerable customers who may struggle to navigate complex systems.
Outcome and Impact – The successful outcome in this case demonstrates the effectiveness of combining segmentation with active case management. The debt reduction from over £5,000 to £857 significantly eased the family’s financial burden. The backdating of benefits was critical, showing that timely and informed intervention can have a substantial retrospective impact.
Lessons Learned
Customer Engagement – Effective engagement strategies should integrate both technological tools like profiling and personal, empathetic communication to achieve better outcomes.
Proactive Support – Local Authorities and similar organisations could consider more proactive outreach and support mechanisms for vulnerable customers to ensure they receive all the benefits and reliefs they are entitled to.
Continuous Review – Regular reviews and updates to customer data are essential in identifying potential entitlements and preventing arrears from escalating.
Recommendations
Enhanced Training for Staff – Ensure that staff members handling such cases are well-trained to identify and address unique customer needs through direct communication.
Integration of Human and Technological Approaches – Balance the use of segmentation and profiling tools with personal interaction to improve overall outcomes for customers.
Regular Check-Ins – Implement regular check-ins with vulnerable customers to reassess their situation and provide timely assistance as needed.