The municipality of Utrecht is tired of waiting lists and will provide debt assistance for vulnerable residents with complex problems in-house from 2025. Stadsgeldbeheer, the party that has been providing this service for the municipality for over 25 years, finds it ‘difficult to digest’.
According to Stadsgeldbeheer, this was unexpected
The municipality’s decision comes unexpectedly for Stadsgeldbeheer, the organization writes on its website. In 2019 she won the tender for specialist debt services. According to Stadsgeldbeheer, this was fixed for a period of nine years, although inquiries with the municipality showed that it was a three-year contract with the option to extend three more times for two years.
Quality
‘This positive choice gave our clients and employees clarity and certainty. The quality of Stadsgeldbeheer was confirmed in 2022 by independent research (BMC) commissioned by the municipality of Utrecht.’ City money management falls under De Tussenvoering, an organization that does much more for the municipality of Utrecht. For example in the field of social care, assisted living, and guidance towards work.
Waiting lists
The aforementioned BMC investigation also showed that the cost price had been calculated too low in the tender. That is why the contract was broken up by mutual agreement. According to Stadsgeldbeheer, this has caused implementation problems. ‘Unfortunately, the result was that Stadsgeldbeheer was able to help fewer clients. Because the number of routes had to be reduced, there was a temporary longer waiting time.’ That waiting time is said to have been reduced by now.
Municipality not satisfied
The longer waiting lists are a reason for the municipality to break with the organization, although according to the council, these arose earlier. ‘There have been waiting lists every year since 2020. At the end of 2023 there was a waiting list of 70 clients. The longest waiting period is almost a year,” according to a letter to the municipal council. The municipality hopes that by taking the services in-house, economies of scale and specialization opportunities will arise. The municipality already carries out the regular debt assistance processes itself.
Economies of scale
‘You only have to deal with the Debt Junction connection, automation, expertise development, NVVK membership, overhead, etc. once. Relatively fewer managers, senior employees, quality advisors and administrative support staff are also needed.’ Utrecht also says that it is currently the only large municipality that outsources complete debt assistance for this specific target group.
Caring about clients
City Money Management absolutely does not see these advantages and mainly describes the choice as a cost-cutting measure. The organization points out that it has won the trust of clients through good services, and that a shift to the municipality may damage this. ‘The bond of trust between client and financial counselor, which is often built up with difficulty, is damaged. We are very concerned about the well-being of these vulnerable people.”
Municipality ambitious
According to the council, Utrecht can assist Stadsgeldbeheer clients, approximately 1,100 annually, without incurring additional costs. However, the municipality must improve efficiency. The letter to the city council shows that Utrecht is already struggling with capacity problems in the implementation of the ‘housekeeping booklet’, another form of service for residents with financial problems.
