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, with an update to be presented to the next meeting of the Committee on 7 September 2023.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided information on Revenues and Benefits performance in respect of annual outturns for the financial year 2022/23.

The Revenues and Benefits Shared Service had now been in operation for twelve 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 global pandemic and then cost of living challenges had understandably impacted on some areas of performance and these impacts were likely to continue for many more months.

In respect of Council Tax, for the financial year 2022/23, in-year collection for Lincoln and North Kesteven was up by 0.15% and 0.03% respectively compared to 2021/22. Net collectable debit for 2022/23 (compared to 2021/22) increased by £2,955,932 for Lincoln and £4,464,550 for North Kesteven.

Although performance had not yet returned to pre-pandemic levels of collection, the increase to both in-year collection rates was a positive achievement in light of the significant impacts of the well-documented cost of living challenges locally and nationally.

In terms of 2022/23 national in-year collection rates for Council Tax recently published, North Kesteven was the 9^th highest compared to the rest of the country, up from 28^th place the year before. Lincoln was ranked at 240^th, which was 26 places higher than the year before.

In respect of Business Rates, for the financial year 2022/23, in-year collection was up for Lincoln by 0.74%, North Kesteven down by 0.40% and West Lindsey up by 0.64%. It should be noted that performance in financial years since the start of the Covid-19 pandemic was not wholly comparable ‘like for like’ due to differing levels of discounts/reliefs available, - however all three collection outturns were positive – particularly in light of the economic climate and significant challenges for businesses over the last three years.

In terms of 2022/23 national in-year collection rates for business rates, North Kesteven achieved the highest in the country for 2021/22 and came 14^th in 2022/23, Lincoln achieved 48^th position in 2021/22 and improved to 22^nd place in 2022/23, and West Lindsey achieved 170^th position in 2021/22 and improved to 162^nd place in 2022/23.

As at the end of the financial year 2022/23, outstanding Revenues documents stood at a total of 935 (split Lincoln 637, North Kesteven 298). This figure was significantly lower than at the end of 2021/22 (total 3,022) – with progress being made in the latter half of 2022/23 due to a number of reasons; recruiting to vacant positions, resources reallocated to ‘core’ Revenues work following delivery of the Council Tax energy Rebate scheme, and recruitment to vacant posts. However, there were again currently vacant positions on this team – it was hoped these were recruited to as soon as possible to help curb the rising level of outstanding work in 2023/24 so far.

To give some context as to the workload of the Revenues Team, in 2022/23 51,585 documents were completed in our electronic document management system, as well as 44,846 telephone calls taken.

As at the end of the year 2022/23, in collection rates for housing benefit overpayments and outstanding monies were as follows:

Performance in this area continued to be positive – outstanding debt continued to decrease and in-period collection was exceeding 100% for both partner Councils

As at the end of the financial year 2022/23, there were 2,720 Benefits customers outstanding (awaiting assessment) – split Lincoln 1,792, North Kesteven 928. This was almost the same figure as at the end of 2021/22 (2,768) – a notable and positive achievement, when considering the demands on the team throughout the year – i.e., not only having to keep on top of the incoming workload, but delivering other schemes such as the Household Support Fund, Discretionary Housing Payments, as well advice to customers around cost of living support. The number of Universal Credit (UC) documents requiring processing continued to have a real impact on the team, too. To give some context as to the workload of the Benefits Team, in 2022/23, 62,714 documents were completed in our electronic document management system, as well as 3,179 telephone calls taken.

Despite the team’s workload, due to efficient and proactive processes in place, Benefit claims were assessed on a timely basis as detailed at paragraph 5.2 of the officer’s report.

The importance in processing Benefits claims accurately remained of paramount importance, – i.e., ‘getting it right, first time.’ In 2022/23, City of Lincoln’s ‘right first time’ assessment of cases checked was 95.26% (1,427 out of 1,498) and for North Kesteven 96.70 (1,113/1,151). A significantly higher number of checks took place in 2022/23 compared to 2021/22, with a focus on a number of areas including the assessment of homelessness cases, in line with the team’s robust quality checking mechanisms.

It should be noted that these checks were in addition to those required to be carried out under the requirements of the annual Housing Benefit Subsidy claims.

The table at paragraph 6.2 of the officer’s report showed the vital monies that our Welfare Team had continued to assist customers to access during 2022/23 (comparing to 2021/22). The demographics and demands were such in the districts, with Covid-19 undoubtedly having an impact in North Kesteven where home visits (which had pre-Covid been key in offering welfare/benefits advice) not being possible to deliver in the same way. As the new financial year 2023/24 moved forward, officers would further develop new ways of working to ensure customers could access the services of this team through a variety of different methods.

There were a number of key reasons why the levels of Welfare/Money advice in Lincoln was higher than in North Kesteven, including:

-          Differences in demographics;

-          ‘Customer journey’ different at each Council;

-          Significant number of foodbank vouchers issued at Lincoln (1,686) compared to North Kesteven (79).

A small working group of officers from both partner Councils was currently reviewing demands and processes for the Welfare Team.

Members queried the figure quoted at Appendix 1 for ‘total net arrears for council tax prior years for annual outturn 2021/22 - City of Lincoln Council’, which was about half the figure of that in 2022/23. The Assistant Director of Shared Revenues and Benefits agreed to check this entry.