Councillor Seema Chandwani, Cabinet Member for Resident Services & Tackling Inequality, approved the initiation of a procurement process to select multiple enforcement agencies for the collection of Penalty Charge Notice (PCN) related debt. This decision aims to mitigate risks associated with relying on a single agency and to enhance debt recovery through competition and improved performance monitoring.

Procurement of Enforcement Agency Services

The meeting approved the initiation and execution of a procurement process via the YPO Framework to select several enforcement agencies to assist with collecting PCN-related debt for the Authority. This decision was made to address the risks associated with having only one enforcement agency, CDER Group, and to foster healthy competition among providers to improve collection rates.

The report presented highlighted that in 2023/24, the Council issued 397,000 PCNs, generating approximately £20 million in income, with £2 million collected by the existing sole enforcement agency. The current reliance on a single agency, CDER Group, was identified as an unacceptable risk should their services become unavailable. Appointing multiple providers aims to remove this risk.

Key reasons for the decision included:

• Risk Mitigation: Diversifying to multiple agencies reduces the risk of service disruption.
• Improved Collection: Competition among agencies is expected to enhance overall debt recovery. The revised contract specification includes a robust governance and Key Performance Indicator (KPI) structure, with new casework allocated based on operational and financial performance.
• Cost Savings: The revised specification makes the enforcement agency responsible for the Traffic Enforcement Centre (TEC) registration fee of £10.00 per PCN, with an anticipated budget saving of approximately £600,000.
• Ethical Debt Collection: The specification includes enhanced provisions to protect vulnerable individuals and is based on the principles of ethical debt collection, balancing firmness with compassion.
• Framework Alignment: The YPO framework is already in use for other debt types within Haringey and other councils, including council tax, business rates, and social care debts.

Alternative options considered were:

• Do nothing: This would maintain the existing risks and not provide potential revenue improvements.
• Joint procurement with other Council services: This was not possible as the overall contract value would exceed the YPO ceiling of £5.3 million.
• Undertake an alternative public procurement exercise: The YPO framework was deemed the most suitable option.

The procurement process will involve selecting several enforcement agencies, with the top three being designated as active and others as reserves. Performance will be monitored through financial and operational KPIs, with underperforming agencies potentially having their case allocation reduced or being moved to reserve status. The contract will be for two years, with no option for extension.

The decision aligns with the Council's commitment to recovering legitimate parking debt in a compliant and ethical manner, as outlined in the report. The specification for the new contracts includes detailed requirements for service providers, covering areas such as data security, vulnerability protection, and complaint handling, as detailed in the Enforcement Agency Specification and Code of Practice. An Equality Impact Assessment (EIA) screening tool was completed, concluding that a full EIA was not required due to existing statutory protections for vulnerable debtors and no anticipated negative equalities impacts.