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 22 February 2024.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided an update on Revenues and Benefits performance in respect of Quarter 2 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 2 2023/24, in-year collection for Lincoln were down by 1.70% and North Kesteven was down by 1.08% respectively compared to the end of Quarter 2 2022/23. At the end of October 2023, there had been little change for both Lincoln and North Kesteven.

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 2 2023/24 compared to the same point in 2022/23, in-year collection was down for Lincoln by 3.43%, North Kesteven down by 6.48% and West Lindsey down by 8.30%. Therefore, in-year collection for Quarter 2 2022/23 was effectively ‘inflated’. It was expected that the level of shortfall in 2023/24 in-year collection rate would reduce over quarter 3 and then into Quarter 4. 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).

The number of outstanding Revenues Customers at the end of Quarter 2 2023/24 was 797 (split Lincoln 402, North Kesteven 362) – this continued the positive direction of travel and position, achieved through improved processes and recruitment to vacant roles within the team.

As at the end of Quarter 2 2023/24, in period collection of Housing Benefit overpayments stood at for City of Lincoln 108.72%, and North Kesteven 97.02%.

Outstanding Housing Benefit overpayments debt also continued to decrease overall. As at the end of Quarter 2 2023/24: at £2,402,885 for City of Lincoln and £1,258,896 for North Kesteven. Although North Kesteven had fallen below 100%, and outstanding debt had risen (but only by £1,759) – there were no concerns as collection remained high.

As at the end of Quarter 2 2023/24, there were 1,696 Benefits customers outstanding and awaiting assessment (split Lincoln 1,156, North Kesteven 540). This figure compared favourably to the same point last year, Quarter 2 2022/23 (total 2,285 outstanding) and was a significant reduction from Quarter 1 2023/24 (3,682 items outstanding). This was an extremely positive achievement considering the significant ongoing demands on this team, although regular overtime had been in place due to gaps in staffing resources (which was being addressed) as wells as to help address additional demands on the service due to cost of living pressures.

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 1 2023/24 New Claims were processed in an average of 22 days by Councils, with Changes of Circumstance being processed in an average of 8 calendar days. Although, these national figures were for a specific quarter only (i.e., Quarter 1 2023/24) 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 Quarter 2 , in terms of processing times for new benefit claims, City of Lincoln took an average of 16.61 days and North Kesteven 18.58 days respectively. As at November, the team is working on incoming items within 9-10 days, which was the best position achieved for sometime.

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:    89.87% (639 out of 711 checked),
• North Kesteven:  97.77% (395 out of 404 checked).

City of Lincoln’s reduced level of performance in quarter 1 was due to  200 more checks during the quarter than in the same quarter last year, including due to less experienced officers being part of the team. 100% of claims being checked, which could mean more (small) errors being identified- and the corrected. Performance had improved by more than 2% from end of Quarter 1 to Quarter 2, demonstrating a positive direction of travel. As at today, the current claimed checked were 91.35% for Lincoln and 98.05% for North Kesteven respectively.

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 2 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) compared to North Kesteven)

Demands and processes for the Welfare Team continued to reviewed on an ongoing basis.