REPORT TO THE HOUSING CONSULTATIVE PANEL

POOLE HOUSING PARTNERSHIP LTD

23rd FEBRUARY 2005

RENT PAYMENT CARD SERVICE

1.0 Executive Summary

1.1This report has been produced to advise of the options regarding the rent payment card service

1.2The rent service was subject to scrutiny in the recent Best Value review of the Rents Service

1.3Poole Housing Partnership has a clear commitment to providing a variety of payment options for residents but also to ensure that the costs of rent collection are kept as low as possible

1.4A recommendation will be made to PHP Board that the rent payment card service (swipe card) should be moved to a new supplier

2.0 Purpose of the report

2.1The purpose of the report is to outline the alternative rent payment card suppliers; the advantages and disadvantages of each supplier and to recommend the way forward.

3.0 Background information

3.1The Rents Service was subject to a Best Value Review in the summer of 2004 and a Service Action Plan was drawn up following that Review

3.2The Action Plan included the need for the rent payment card service to be market tested both in terms of the cost of the service and the convenience for residents

3.3Two Focus groups of officers, Board members and residents were convened in early December 04. Our current supplier and another market leader, were asked to demonstrate their product and to answer questions from the focus group members

3.4Following the focus groups, the suppliers were asked to send in details of their service and the costs

3.5References for the alternative new provider were requested via Housing Quality Network and two references were received

3.6As at 8th February 2005, 3193 tenants used the rent payment card (swipe card) as their primary method of payment

4.0 Comparisons of the two service providers

Current Provider / Alternative New Provider
Track record / Are regulated and covered by the FSA compensation scheme which guarantees the return of 90% of any funds being held immediately
As existing customers PHP has first hand experience of the services provided. / 450 clients and 650 schemes including Councils and Housing Associations.
References have been obtained from Bristol City Council and Nene Housing Society Ltd in Peterborough
IT links / Already has IT links in place for file transmission / Works over a secure internet site. It has been tested by other organisations. If we decide to migrate to this new provider we will thoroughly test all security issues
Outlets in Poole / Post offices only at the moment. 21 listed on the Post Office web site. (See Appendix 1) Post Offices normal working hours
The Post Office could work in partnership with PayPoint (18 outlets See Appendix 2) via Co-op to provide more outlets at additional cost / The Company works with the Post Office network, the PayPoint, and PayZone networks Total outlets including Post Office and PayPoint is 53
In addition the Company has joined forces with the PostTS service that may provide other pay points in the future
Provision of the cards / -Costs have been received from the supplier / Costs have been received from the supplier
Cards will be requested through the Company’s website and despatched directly to the resident
Associated costs / Costs have been received from the supplier / Costs have been received from the supplier

5.0 In Summary

5.1The current provider has worked with the Borough of Poole for some years and is a reputable organisation

5.2The current provider presently can provide just the Post Office network, although they are now exploring alternative networks. The Post Office network is available 9am to 5.30pm. There have been some Post Office closures in Poole and the current provider has admitted there is a network weakness at the moment

5.3The current provider has struggled to set up electronic transmission of data files to PHP. This has resulted in additional costs to PHP

5.4PHP currently uses a separate company to print and issue replacement and new swipe cards

5.5The new provider is a fast growing organisation. We have obtained documents relating to the companies financial security and references from other service users

5.6The new provider can provide additional pay points over and above the current provider’s network and many of those outlets are open outside of 9am to 5.30pm

5.7The new provider does not make a charge for sending the daily cash files. There is a per transaction charge only.

5.8The new provider would print new cards and despatch to residents with 24 hours of the request

5.9The new provider’s network will provide more payment outlets for our residents and a greater number of hours in which to make rent payments. The costs of the service, apart from the one off set up costs, are cheaper than the current provider.

6.0 Recommendation

6.1The new provider has a number of advantages over the current provider

  • The service is cheaper and there are no hidden costs
  • The service would be more efficient – new and replacement cards would be requested on line and be with residents within 24 hours and cash files would be sent to us electronically
  • Residents would have more places to make payment and some outlets are open outside 9am to 5.30pm

A recommendation will be made to the Board that Poole Housing Partnership transfer to the new provider for the rent card payment service, with effect from May 2005

Report prepared by Sue Phillips, IT and Systems Manager
Poole Housing Partnership

23rd February 2005

THE APPENDICES TO THIS REPORT ARE NOT AVAILABLE ELECTRONICALLY PLEASE CONTACT LEGAL AND DEMOCRATIC SERVICES SHOULD A COPY BE REQUIRED

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