Issue - meetings

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the third quarter’s (ending 31 December 2023) performance for the Revenues and Benefits Shared Service for 2023/24, as detailed at Appendix 1 to the report.

Decision

That the actual position at Quarter 3 as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The forecast outturn for 2023/24 predicted there would be an underspend against the approved budget of £34,940, which included the newly confirmed 2023/24 pay award, which was paid in December 2023.

The approved budget for 2023/24 was agreed by the Shared Revenues and Benefits Joint Committee on 23 February 2023, which set a budget of £2,878,930 for the service.

At Quarter 1 the budget was increased to reflect New Burdens grants totalling £61,950, giving a revised budget of £2,940,890, there were no further changes as at Quarter 2. At quarter 3 further new burdens received totalled £13,300.

Financial performance for the third quarter of 2023/24 as detailed at Appendix 1 of the officer’s report resulted in an underspend against the approved budget of £9,000.

The forecast outturn for 2023/24 predicted that there would be an underspend against the approved budget of £34,940, which included the impact of the National Pay Awards paid in December 2023, which reflected an improvement of £35,250 from quarter 2.

The main forecast year-end variations against the approved budget for 2023/24 were noted within the table at paragraph 4.3 of the officer’s report.

A Job Evaluation Panel held on 11 July 2023 had evaluated and approved the Benefits Appeal Officer role at Grade 6 (previously Grade 5). This was now reflected in the current forecast outturn position. The impact of this job evaluation totalled £1,485.88, which had been split as follows: City of Lincoln £861.81 and North Kesteven £624.07

Each Council had received a new burdens grant from Central Government to administer the Energy Support Scheme to the value of £14,950 for City of Lincoln Council and £21,790 for North Kesteven. By agreement these grants sat outside of the shared service budget.

The key factor behind the improved position as at quarter three was the ongoing staffing vacancies which, as at quarter two, were expected to be recruited to during the second half of the year but were now expected to remain vacant until the end of the financial year. These savings were partly offset by the National Pay Award, which was significantly higher than the budgeted pay award estimate of 3% assumed within the Medium Term Financial Strategy (MTFS), alongside overtime costs which had been incurred due to the volume of vacancies that remained within the teams.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the second quarter’s (ending 30 September 2023) performance for the Revenues and Benefits Shared Service for 2023/24, as detailed at Appendix 1 to the report.

Decision

That the actual position at Quarter 2 as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The forecast overturn for 2023/24 predicted there would be an underspend against the approved budget of £112,170, however after accounting for the newly confirmed 2023/24 pay award, due to be paid in December , there was a minor overspend of £310.

The approved budget for 2023/24 was agreed by the Shared Revenues and Benefits Joint Committee on 23 February 2023, which set a budget of £2,878,930 for the service.

At Quarter 1 the budget was increased to reflect New Burdens grants totalling £61,950, giving a revised budget of £2,940,890, there were no further changes as at Quarter 2.

Financial performance for the second quarter of 2023/24 as detailed at Appendix 1 of the officer’s report resulted in an underspend against the approved budget of £112,760.

The forecast outturn for 2023/24 predicted that there would be an underspend against the approved budget of £112,170 a deterioration of £17,930 from Quarter one. This, however, excluded the impact of the recently agreed national pay award which was, again, well in excess of the MTFS assumption of 3%. The impact of this had been calculated at £112,480, split between each authority as follows: City of Lincoln £56,470 and North Kesteven £56,010. The pay award was expected to be implemented in December 2023, and backdated to April 2023 and would therefore be fully reflected within the Quarter 3 report.

The main forecast year-end variations against the approved budget for 2023/24 were noted within the table at paragraph 4.3 of the officer’s report.

A Job Evaluation Panel held on 11 July 2023 had evaluated and approved the Benefits Appeal Officer role at Grade 6 (previously Grade 5). This was now reflected in the current forecast outturn position. The impact of this job evaluation totalled £1,485.88, which had been split as follows: City of Lincoln £861.81 and North Kesteven £624.07

Each Council had received a new burdens grant from Central Government to administer the Energy Support Scheme to the value of £14,950 for City of Lincoln Council and £21,790 for North Kesteven. By agreement these grants sat outside of the shared service budget.