Agenda item

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with an update on performance in the Revenues and Benefits Shared Service.

Decision

That the report be noted, and an update be presented to the next meeting of the Committee on 23 February 2023.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided information on revenues performance for Quarter 2 2022/23 in respect of (a) council tax for the City of Lincoln Council and North Kesteven District Council; and (b) business rates for the City of Lincoln Council, North Kesteven District Council and West Lindsey District Council. Comparisons to the national and local position in terms of performance were provided, where possible.

The Revenues and Benefits Shared Service had now been in operation for more than eleven years since 1 June 2011, and performance had largely been maintained and improved whilst continuing to provide value for money.  Continual improvement and success was being achieved in both statistical and financial performance, as well as positive outcomes for customers of the partner local authorities. However, the Covid-19 pandemic had understandably impacted on some areas of performance and these impacts were likely to continue for many more months.

In respect of council tax, up to the end of Quarter 2 2022/23, in-year collection for Lincoln and North Kesteven was up by 2.58% and 0.90% respectively.  However it should be noted that in appropriate circumstances Council Tax Energy Rebate payments had been credited to Council Tax accounts, as well as Council Tax Hardship Fund monies being allocated, which would be ‘inflating’ collection performance. Officers continued to monitor and manage collection closely.

In terms of the trend in Council Tax (CTS) caseloads, it could be seen that caseloads rose sharply in 2021 as an outcome of the impact of Covid-19 on the economy and residents’ incomes. The caseload then plateaued somewhat and had been falling, however with the ongoing cost of living pressures on residents, there was the potential that these reductions in caseloads may not continue.

In terms of Business Rates, up to the end of Quarter 2 2022/23, compared to the same point in 2021/22 in-year collection was up for all three local authorities: Lincoln (by 7.29%), North Kesteven (by 8.86%) and West Lindsey (by 12.33%). Although this was positive, it should be noted that for all three local authorities Covid Additional Relief Fund (CARF) monies had been added to accounts – and where ratepayers paid in full last year – there may be a credit for 2021-22 which was offsetting against this year’s liability. Collection also continued to be ‘skewed’ somewhat in recent financial years due to varying criteria/awards of the Expanded Retail Discount (ERD).

As at the end of the Quarter 2 2022/23, the number of outstanding revenues customers stood at a total of 4,138, of which 2,945 were from the City of Lincoln and 1,193 from North Kesteven. This compared to 5,133 (split Lincoln 3,454, North Kesteven 1,679) at Quarter 2 2021/22. Despite this improvement from the same point in 2021/22, the outstanding figure had increased since the end of Quarter 1 2022/23. This was due to vacancies in the staffing establishment (which were in the process if being recruited to) as well as a significant amount of staff resource going into the Council Tax Energy Rebate Scheme during the last 6 months. It was anticipated It the position would improve during Quarter 3.

As at the end of Quarter 2 2022/23, in-period collection of Housing Benefit overpayments stood at 162.20% for City of Lincoln and 113.30% for North Kesteven Outstanding Housing Benefit overpayments debt also continued to decrease overall as at the end of Quarter 2 2022/23, at £2,538,654 for City of Lincoln and £1,327,854 for North Kesteven.

As at the end of Quarter 2 2022/23, there were 2,285 Benefit customers outstanding and awaiting assessment, (split Lincoln 1,553, North Kesteven 732) This figure was higher than the same point in 2021/22 (total 2,001 – split Lincoln 1,411, North Kesteven 590), but this showed a positive direction of travel from Quarter 1 2022/23 when at the end of June 2022 there were 3,654 Benefits customers outstanding (split Lincoln 2,544, North Kesteven 1,110). There continued to be a significant demand on the Benefits Team, particularly in relation to (but not exclusively) Universal Credit – related information impacting on Housing Benefit and Council Tax Support claims. At the same time, Benefits Officers continued to work on Discretionary Housing Payments, Council Tax Energy Rebate and Household Support Fund.

In terms of claims checked that were ‘correct, first time’ (with even £0.01p ‘out’ being classified as an incorrect assessment), at the end of Quarter 2 2022/23 the City of Lincoln figure stood at : 95.56% (409 out of 428 checked),and North Kesteven: 95.32% (448 out of 470 checked).

These checks were in addition to the significant amount of checks also carried out under the audit requirements of the annual Housing Benefit Subsidy claims.

Provision of welfare and benefits advice continued to be key as our Welfare Team continued to assist customers to access vital monies in the second quarter of 2022/23. Further detail was set out within the table at Paragraph 6.2 of the officer’s report.

It was further advised that since the report was written:

·       Council Tax in-year collection to end October 2022:  Lincoln 2.88% up, North Kesteven 0.90% up.

·       Business Rates in-year collection to end October 2022:  Lincoln 4.60% up, North Kesteven 6.55% up, West Lindsey 10.26% up

·       Outstanding Revenues customers at end October 2022:  Lincoln 2,921, North Kesteven 912.

·       Average number of days to process Housing Benefit New Claims:  Lincoln 16.34 days, North Kesteven 20.10 days

·       Average number of days to process Housing Benefit Changes of Circumstance:  Lincoln 6.13 days, North Kesteven 4.27 days

·       Outstanding Benefits customers at 23^rd November 2022:  Lincoln 950, North Kesteven 437, - working within 1 week