16 words with $1.7m payoff

A single sentence deploying guilt against people with overdue fines has the Ministry of Justice expecting a $1.7 million payoff.

‘‘Most people pay their fines, you are in the small minority that still needs to pay,’’ was added to a letter sent to people with unpaid fines during a trial in 2018.

The 16-word prompt increased the rate of paid fines by 7.2 per cent, which the ministry estimates will collect $1.7m more in fines annually.

The ‘‘nudge’’ is a measure taken from behavioural psychology, a technique increasingly in vogue among government agencies.

It’s hoped that such small, simple measures can influence people to pay fines, debts and drink less alcohol.

Ministry of Justice research and evaluation manager James Swindells said three new letters were tested on a sample of 29,000 people with court fines or infringement fees overdue by more than 28 days.

One letter was simplified using colour and a clear ‘‘call to action’’, while another had a ‘‘fresh start’’ message: ‘‘So far we have treated this as a simple mistake but if you fail to pay now, we will treat it as an active choice.’’

And while all three had a small increase in payments, the ‘‘social norm’’ letter was the most successful.

‘‘Social norms work because most people prefer to behave in line with what others do but overestimate how many people don’t behave like others.’’

Swindells said that 78 per cent of people did pay their fines on time.

Another trial is under way to improve the envelopes containing the letter, and other similar projects hope to improve community work attendance and adherence to bail conditions.

The Ministry of Social Development (MSD) has also revised its letter with warmer language, including a debt collection letter that now informs people of their debt rather than demanding payment.

MSD general manager of client communications Louise Beaumont said it was about ensuring people knew the ministry would help, rather than focus on a specific outcome.

British-based consultancy firm Behavioural Insights Team has worked with several departments interested in behaviour, including MSD and the Health Promotion Agency.

Research conducted for the agency showed advertisements targeted to specific groups, such as ‘‘most young Ma¯ ori don’t drink more than four drinks per week’’, would be more effective at reducing drinking than displaying alcohol’s impact on a person’s appearance.

‘‘Most people pay their fines, you are in the small minority that still needs to pay.’’