AI plan unveiled to cut council tenant rent debts

11 hours ago

Phil CorriganLocal Democracy Reporter

News image — Councillor Chris Robinson has backed the AI system proposals

Stoke-on-Trent City Council :Councillor Chris Robinson, cabinet member for housing, regeneration and planning at Stoke-on-Trent City Council. — Councillor Chris Robinson has backed the AI system proposals

A council has announced plans to use artificial intelligence (AI) to help its 18,000 tenants from falling into rent arrears.

The system, which Stoke-on-Trent City Council hopes to procure, would be used to spot who among tenants are facing financial hardship so they can benefit from earlier intervention.

The proposed AI programme will cost the authority £210,000 a year, but is expected to create around £430,000 in savings, through increased revenue collection, reduced recharges to the general fund and a drop in bad debt provision.

Cabinet members will be asked to back the plan on 19 May, and comes after a report said the current housing management system was "no longer fit for purpose".

Google Aeria view of council housing in Bentilee, Stoke-on-Trent — The local authority has 18,000 tenants across the city

Councillor Chris Robinson, cabinet member for housing, said he believes the AI system will benefit both tenants and the council.

In a statement included in the council report on the proposal, he wrote: "I totally support the decision and am happy for corporate director of housing, regeneration and operations to have delegated powers to approve the procurement of a cost-effective AI and analytical software solution to reduce current and former tenant arrears, increase revenue collection and reduce exposure to bad debt."

Data protection issues

Tenants' rent arrears have been increasing over the last few years, reaching a peak of 3.06 per cent between 2023 and 2024, although it has fallen back slightly since then.

No job losses are forecast as a result of the new system, as staff will be able to focus on the complex and high-risk cases, the report stated.

As the AI system will process tenants' personal information, the report suggested data protection issues will need to be investigated.

The council would also need to consider whether personal data held by the authority will be used to train the AI, it added.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.

Follow BBC Stoke & Staffordshire on BBC Sounds, Facebook, X and Instagram.