'Is there something I should know?' is the title of a recent Audit Commission report into how public sector bodies might use information better to reduce costs without damaging frontline services.
Steve Bundred, chief executive of the Audit Commission, writes: "Giving decision makers the information they need will help councils make savings while improving services. This is all the more critical in recessionary times and some solutions have little or no extra cost … Information may not sound like an exciting topic, but right now too many councils risk making poor decisions because their information is inaccurate, irrelevant or incomplete."
Simon Martin
So what are these no-extra cost panaceas for efficiency and cash? How can we use information better to release resources and raise revenues? How do we turn information – or data – into knowledge?
Information can yield some curious results. A recent profile of BNP supporters revealed these people had a high propensity to own a caravan. It showed that they gave little or nothing to charity, owned dogs and made few international phone calls. An analysis of their surnames revealed they mostly have old English names, the sort you find in small town churchyards, localised in the same place for centuries.
When you think about it, it makes perfect sense. These are people who like to control their own space. They want to choose who lives next to them, even on holiday. They believe people should stand up for themselves and therefore shouldn't need hand-outs.
Should we ever wish to use it, this knowledge allows us to communicate better with this group. More seriously, it demonstrates how information can be used to understand different types of people and the sort of messages that are likely to be less or more relevant to them.
Better knowledge and citizen insight has enabled public sector organisations to move away from the 'one-size-its-all' approach to their communications. It has facilitated better targeting of services and provisioning. It has also enabled some to save considerable amounts of money.
So how well do you know your customers?
Better citizen insight can deliver real benefits through social marketing. For example, Tower Hamlets PCT recently used information on its hospital users to reduce inappropriate attendance at A&E by over 6%; South Tyneside PCT increased its screening of people vulnerable to chronic obstructive pulmonary disease by over 300% and, through early intervention, made a saving of £10,000 for each prevented hospital admission.
Information can also prove invaluable in revenue collection and fraud prevention. When collecting revenues, how well do you spot the early signs of default and communicate with people before it's too late? Can you make a distinction between people that can but won't pay their council tax from those that simply can't afford to?
We think at least 20% more council tax could be collected each year from people who have the means to pay but are not doing so. For the last financial year, this amounts to some £127m out of a total of £636m of uncollected council tax in England.
But don't take our word for it. Neil Harrison from South Tyneside council said: "A more analytical approach using Experian's score-based assessment has given us far greater insight into our citizens and helped us collect significantly more revenues to fund vital services."
What about information used to prevent fraud? The Audit Commission thinks local authorities could save over £100m a year by preventing single person discount fraud on council tax payments. It estimates that council taxpayers could be losing almost £2m a week to fraudsters who claim the 25% single person discount on their council tax.
We agree with the figures. Through the compliant and secure use of information we saved Edinburgh city council more than £3m in two years by preventing fraudulent single person discount claims. This is cash straight in the bank to fund vital services. If applied across all 380 local authorities we know we can save more than £150m a year.
The economic cycle has yet to impact fully on the public sector. We are heading into more austere times. The peak in unemployment normally lags several months behind the first signs of growth. The human fallout in terms of bad debt and demand on public services will peak several months after the spike in unemployment.
Local authorities and public organisations will need to brace themselves for the long haul and, as politicians face up to the reality of a £175bn deficit, the quest is on to find those ever illusive no-extra cost panaceas for efficiency and cash.
Some do exist. The proof is out there and information is the key.
Simon Martin is director of Experian Public Sector
