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 27 June 2023.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided information on revenues performance for Quarter 3 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 3 2022/23, in-year collection for Lincoln and North Kesteven was up by 1.76% and 0.75% 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. As at the end of January 2023, Council Tax in-year collection was up by 2.13% and 0.62% for City of Lincoln and North Kesteven respectively, compared to the end of January 2022.

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, however, with the ongoing cost of living pressures on residents, there was the potential that these caseloads may rise again.

In terms of Business Rates, up to the end of Quarter 3 2022/23, compared to the same point in 2021/22 in-year collection was up for all three local authorities: Lincoln (by 1.40%), North Kesteven (by 4.57%) and West Lindsey (by 7.62%). 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).All three collections were less ‘up’ compared to the end of Quarter 2 2022/23, so was perhaps starting to demonstrate a more accurate position on collection as the inflated performance due to CARF started to ‘even out’ as the financial year continued to progress. As at the end of January 2023, Business Rates in-year collection was up by 0.73%, 4.01% and 5.28% for City of Lincoln, North Kesteven and West Lindsey respectively, compared to the end of January 2022.

As at the end of the Quarter 3 2022/23, the number of outstanding revenues customers stood at a total of 656, of which 444 were from the City of Lincoln and 212 from North Kesteven which was a significant reduction from the end of Quarter 2 2022/23 (where 4,138 items were outstanding). This had taken place due to a number of reasons - staffing vacancies, being filled (further appointments to follow within establishment), “trawling” of outstanding work queues to complete items which had already been processed through other routes, as well as the intensive resources that had been required by the Council Tax Energy Rebate Scheme having reduced. With annual Council Tax billing due to take place in Quarter 4 for 2023/24, being as up to date as possible with Revenues work was vital to enable accurate bills to be issued. As at the end of January 2023, outstanding Revenues customers stood at 348 (City of Lincoln) and 139 (North Kesteven) – total 487.

As at the end of January 2023, for the year 2022/23 to date, Housing Benefit New Claims were being processed in an average of 15.87 days and 19.95 days for City of Lincoln and North Kesteven respectively. As at the end of January 2023, for the year 2022/23 to date, Housing Benefit Changes of Circumstance were being processed in an average of 4.96 days and 3.62 days for City of Lincoln and North Kesteven respectively.

As at the end of Quarter 3 2022/23, in-period collection of Housing Benefit overpayments stood at 137.75% for City of Lincoln and 139.43% for North Kesteven Outstanding Housing Benefit overpayments debt also continued to decrease overall as at the end of Quarter 3 2023/24, at £2,403,988 for City of Lincoln and £1,303,080 for North Kesteven. As at the end of January 2023, Housing Benefit overpayment in-year collection was 134.51% for City of Lincoln and 140.18% for North Kesteven. At the end of January 2023, outstanding Housing Benefit overpayments debt was £2,395,888 and £1,286,244 for City of Lincoln and North Kesteven, respectively.

As at the end of Quarter 3 2022/23, there were 1,859 Benefit customers outstanding and awaiting assessment, (split Lincoln 1,373, North Kesteven 486) The positive direction of travel with regard to outstanding workload reduction continued, as with Revenues work it was vital to be as up to date as possible before annual Council Tax billing and benefits uprating’s for 2023/24Demands on the team would be significant in Quarter 4 as annual changes in circumstances were reported e.g. rent increases, pension increases. There also continued to be a significant demand on the Benefits Team, particularly in relation to Universal Credit related information impacting on Housing Benefit and Council Tax Support claims, as well as Discretionary Housing Payments and Household Support Fund. As at today, 23^rd February 2023, outstanding Benefit customers stood at 1,006 (City of Lincoln) and 358 (North Kesteven) – total 1,364.

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 3 2023/24 the City of Lincoln figure stood at: 95.69% (1,087out of 1,136 checked),and North Kesteven: 96.41% (833 out of 864 checked).)As at the end of January 2023, these figures were 95.72% for City of Lincoln and 96.36% for North Kesteven

Further analysis had been undertaken on the level of ‘incorrectness’ in assessment as requested by this Committee on 24 November 2022, as detailed at paragraph 5.3 of the officers report.

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 third quarter of 2022/23. Further detail was set out within the table at Paragraph 6.1 of the officer’s report.

The Lincolnshire Financial Inclusion Partnership (LFIP) Conference was held at Boston United Football Club this week chaired by Martin Walmsley, Assistant Director, Shared Revenues and Benefits Service. It had been a very successful event. One speaker had noted that welfare advice teams contribute more to customers’ pockets than the amount spent on their administrative expenses.