

Challenge
Solution
Impact
The Cabinet Office’s Reimagine Debt pilot sought to prove whether proactive approaches are more effective in tackling debt and reducing arrears
LIFT pinpointed households in arrears eligible for the pilot. Policy in Practice tracked debt journeys and compared the impact of interventions with a control group
Arrears across all cohorts in the treatment group fell significantly and additional social impacts proven, alongside economic benefits for councils and families
A tale of debt prevention in two cities
Policy in Practice carried out analysis using the Low Income Family Tracker (LIFT) platform. By identifying, analysing and tracking changes in household income and arrears on a monthly basis, councils improved customer engagement, targeted support proactively, and were able to see each customer’s journey on a single screen.
LIFT tracked 18 out of 28 households in Barking and Dagenham and 10 out of 20 in Newcastle. Both councils took different approaches to support their individual cohorts.
LIFT compared these households to a control group to show whether arrears fell more than similar households, and to prove the effectiveness of the intervention.
65%
Average arrears per household in Newcastle fell by
£160
Average arrears per household in Newcastle fell by
Outcomes for Newcastle City Council
Of the households LIFT tracked, the following outcomes were found:
- Proportion of rent or council tax arrears greater than £250 fell from 74% to 58%
- Average benefits income increased by £115 per month
- Average rent and council tax arrears fell by £1,216
- 17% became wholly arrears-free
- Arrears fell by £200 more in the treatment group than in the control group
Return on Investment: Newcastle City Council
Fiscal savings | £113,682 |
Economic savings | £61,415 |
Total savings | £175,097 |
Total cost | £6,873 |
Total benefit | £168,224 |
Return on Investment | 24x |

29%
Average arrears per household in Barking and Dagenham fell by
£1,081
Average arrears per household in Barking and Dagenham fell by
Outcomes for London Borough of Barking and Dagenham
Of the households LIFT tracked, the following outcomes were found:
- Average benefits income increased by £171 per month and average rent and council tax arrears fell by £174
- 50% became arrears free and average earned income increased by £108 per month
- The proportion of rent or council tax arrears greater than £250 fell from 18% to 8%
- Unemployment fell from 91% to 67%
- Arrears fell by 3x more in the treatment group than in the control group
Return on Investment: London Borough of Barking and Dagenham
Fiscal savings | £246,449 |
Economic savings | £78,835 |
Total savings | £325,284 |
Total cost | £9,545 |
Total Benefit | £315,739 |
Return on Investment | 34x |
“Often, residents have other challenges to deal with which can affect how they’re able to deal with the financial aspects of their lives. Proactive and holistic debt interventions can support them to do this, helping people to get back on their feet and have a more stable life.”
Claire Horton
Newcastle City Council

“Debt is not about numbers, debt is about people, behaviours and circumstances. We fix debt problems by focusing on people.”
Steve Coppard
Cabinet Office

“Debt is almost always a symptom of a deeper challenge. Data allows you to quickly identify that there’s a problem, and face to face interaction allows you to get to tackle the root cause and find solutions.”
Mark Fowler
Barking and Dagenham

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