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 30 May 2024.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided an update on Revenues and Benefits performance in respect of Quarter 3 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 3 2023/24, in-year collection for Lincoln was down by 1.47% and North Kesteven was up by 1.05% respectively. Figures for the end of January 2024 were similar again.

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. Officers were also looking into CTS take-up activity as it was felt that this possibly was being underclaimed by residents.

In respect of Business Rates, up to the end of Quarter 3 2023/24 compared to the same point in 2022/23, in-year collection was up for Lincoln by 0.09%, North Kesteven down by 2.92% and West Lindsey down by 0.24%. As at the end of January 2024, Lincoln and West Lindsey were still up, however, North Kesteven was down by 1.72%

The number of outstanding Revenues Customers at the end of Quarter 3 2023/24 was 849 (split Lincoln 550, North Kesteven 299) This was a slight increase from the figure at end of Quarter 2 2023/24 (total 782), however with significant demands on the team plus recruitment taking place in respect of vacant positions – the team had performed well to maintain (relatively) this position. Three newly recruited staff members were starting work in March 2024.

As at the end of Quarter 3 2023/24, in period collection of Housing Benefit overpayments stood at 107.42% for City of Lincoln, and North Kesteven 103.78%. These positive collection levels had continued in January 2024

Outstanding Housing Benefit overpayments debt also continued to decrease overall. As at the end of Quarter 3 2023/24: at £2,324,486 for City of Lincoln and £1,233,565 for North Kesteven.

As at the end of Quarter 3 2023/24, there were 2,099 Benefits customers outstanding and awaiting assessment (split Lincoln 1,481, North Kesteven 618). This was an increase from the total outstanding (1,696) at end of Quarter 2 2023/24. However, the team were working hard to further improve the position – which was generally positive, with significant demand on the Benefits Team not just in terms of ‘core’ processing work (i.e. Housing Benefit and Council Tax Support) but also in terms of cost of living support (including Household Support Fund), Universal Credit documents and Discretionary Housing Payments. We were working to a backlog within 3 weeks for the oldest benefit claims outstanding at the current time, although we were approaching a very busy time of year, with benefits upratings, etc.

Despite the significant demands on the Benefits Team, officers continued to turn around claims and reported changes of circumstance promptly, and accurately. As at the end of January 2024, Lincoln was processing new claims in an average of 14.92 days and North Kesteven in 18.48 days. For changes of circumstance as at the end of January 2024, Lincoln was processing claims at an average of 5.05 days and North Kesteven at 3.63 days

The latest national data available showed that in Quarter 2 2023/24 New Claims were processed in an average of 20 days by Councils, with Changes of Circumstance being processed in an average of 9 calendar days. Although, these national figures were for a specific quarter only (i.e., Quarter 2 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 3 , in terms of processing times for new benefit claims, City of Lincoln took an average of 15.24 days and North Kesteven 18.81 days 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 3 2023/24:

• City of Lincoln:    92.29% (1,641 out of 1,778 checked),
• North Kesteven:  98.26% (678 out of 690 checked).

As at the end of January 2024, accuracy figures stood at 92.58% for Lincoln and 98.5%

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 were being checked, which could mean more (small) errors being identified- and then corrected. Performance had improved by 4.44% from end of Quarter 1 to Quarter 3, demonstrating a positive direction of travel.

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 3 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 be reviewed on an ongoing basis.

Both City of Lincoln Council and North Kesteven District Council residents were affected either directly or indirectly by Storm Babet in October 2023, and/or by Storm Henk in January 2024 .

Three departments of the Government announced 5 separate schemes to help with flood victims:

1. Council Tax relief for a minimum of 3 months
2. Business Rates relief for a minimum of 3 months
3. Council Tax Community Support Grant of £500
4. Business Recovery Grant of £2,500
5. Flood resilience Grants of £5,000 – to future proof flooded properties.

Schemes 1-4 were administered by the Revenues and Benefits Service and scheme 5 was administered by the Lead Flood Authority, Lincolnshire County Council.

The statistics for grants awarded by the Revenues and Benefits Service, were shown in the table at paragraph 7.2 of the report.

The District authorities would be repaid for any of the Grants that they provided and for Council Tax and/or Business rate relief. The end date for the Council Tax Relief and the Business rate relief was when the customer returned to their property, or 31 March 2025. The Revenues and Benefits Service was tasked with continuing to monitor these properties until all residents had returned to their properties.

(Personal thanks were given to Tracey Parker, Revenues and Benefits Manager, for all her hard work during the recent storm damage).