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 23 November 2023.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided an update on Revenues and Benefits performance in respect of Quarter 1 for the financial year 2023/24.

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, up to the end of Quarter 1 2023/24, in-year collection for Lincoln was up by 0.31% and North Kesteven was down slightly by 0.05% respectively, compared to June 2022. At the end of August 2023, City of Lincoln figures were up by 0.02% and North Kesteven down by 0.66%.At this early stage in the financial year, neither rate was a cause for concern.

In terms of the national context, latest figures for annual Council Tax in-year collection outturns 2022/23 saw City of Lincoln Council at 240^th (2021/22- 266^th) and North Kesteven 9^th (2021/22- 28^th) out of 309 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2022/23 City of Lincoln and North Kesteven achieved 6^th and 1^st highest collections, respectively.

Council Tax Support caseloads had recently been falling following a sharp rise during Covid-19, however, with ongoing cost of living pressures on residents there was potential this fall in caseloads may not continue.

In respect of Business Rates, up to the end of Quarter 1 2023/24 compared to the same point in 2022/23, in-year collection was down for Lincoln by 0.99%, North Kesteven down by 2.95% and West Lindsey down by 0.22%. There were no major concerns with in-year collection at this early stage of the year. For North Kesteven, a substantial amount of unallocated payments that had been made had now been identified, and these payments would be included as part of Quarter 2’s collection. It should also be noted that collection had been ‘skewed’ somewhat in recent financial years due to varying criteria/awards of the Expanded Retail Discount (ERD).

In terms of the national context, the latest available figures for annual Business Rates in-year collection outturns 2022/23 saw City of Lincoln Council’s in-year collection at 22^nd (2021/22 48^th), North Kesteven 14^th (2021/22 1^st) and West Lindsey 162^nd (2021/22 170^th) out of 309 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2022/23, City of Lincoln, North Kesteven and West Lindsey achieved 2^nd, 1^st and 4^th highest collections, respectively.

The number of outstanding Revenues Customers at the end of Quarter 1 2023/24 was 797 (split Lincoln 609, North Kesteven 188) – this compared to 2,323 (split Lincoln 1,838, North Kesteven 485) at Quarter 1 2022/23. This improvement was pleasing, achieved through improved processes and recruitment to vacant roles within the team.

As at the end of Quarter 1 2023/24, in period collection of Housing Benefit overpayments stood at for City of Lincoln 116.93%, and North Kesteven 108.29%.

Outstanding Housing Benefit overpayments debt also continued to decrease overall. As at the end of Quarter 1 2023/24: at £2,419,812 for City of Lincoln and £1,257,132 for North Kesteven.

As at the end of Quarter 1 2023/24, there were 3,682 Benefits customers outstanding and awaiting assessment (split Lincoln 2,622, North Kesteven 1,060). This figure was very close to same as at the same point last year, Quarter 1 2022/23 (3,654 Benefits customers outstanding and awaiting assessment (split Lincoln 2,544, North Kesteven 1,110)). Considering the significant ongoing demands on this team, as well as a number of unforeseen staffing absences, to keep the outstanding workload at this level was a real achievement. However, officers were aware the outstanding workload needed to reduce moving forward and would be targeting this aim in the remaining quarters of 2023/24.

Despite the significant demands on the Benefits Team, officers continued to turn around claims and reported changes of circumstance promptly, and accurately.

The latest national data available showed that in Quarter 4 2023/24 New Claims were processed in an average of 20 days by Councils, with Changes of Circumstance being processed in an average of 3 calendar days (although it should be noted for Changes of Circumstance the average normally decreases in Quarter 4, due to high volumes of ‘1-day’ changes processed due to annual rent, pension changes, etc). Also, these national figures were for a specific quarter only (i.e., Quarter 4 2022/23) and not cumulative over the financial year – which was how officers reported these areas of performance for our shared service.

As at the end of August 2023, in terms of processing times for new benefit claims, City of Lincoln took an average of 17.04 days and North Kesteven 18.80 days respectively.

As at today, in terms of benefits performance, City of Lincoln had 1,600 items outstanding and North Kesteven 643 outstanding respectively.

In terms of the claims checked that were ‘correct, first time’ (with even £0.01p ‘out’ being classified as an incorrect assessment), at the end of Quarter 1 2023/24:

• City of Lincoln:    87.85% (405 out of 461 checked),
• North Kesteven:  96.80% (212 out of 219 checked).

The reduction in City of Lincoln performance in this area could be explained by the team having carried out over 200 more checks during the quarter than in the same quarter last year – Of the 461 checks undertaken in the first quarter the team had made 405 ‘first-time correct’ decisions. Compared to last year, the team had only carried out 263 checks at the end of the first quarter. Also, due to less experienced officers being part of the team, 100% of claims were being checked, which could also mean more (small) errors being identified – and then corrected. The Subsidy Team had carried out considerably more checks through our Final Subsidy claim, which had also resulted in errors being reported.

The table at paragraph 6.1 of the officer’s report showed the invaluable support provided by the Welfare Team to the residents of Lincoln and North Kesteven in Quarter 1 2023/24.

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 offered their thanks to all members of staff in recognition of the performance achievements within the Revenues and Benefits Shared Service.