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 21 November 2024.

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 2024/25.

The Revenues and Benefits Shared Service had now been in operation for thirteen years forming on 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 2024/25, in-year collection for Lincoln was down by 0.60% and North Kesteven was down by 0.33% respectively. At the end of August 2024, City of Lincoln figures were down by 0.48% and North Kesteven down by 0.29%. At this early stage in the financial year, neither rate was a cause for concern, although, as previously flagged to this Committee, Council Tax collection was generally lower at both regional and national levels - seeming to indicate that some tax payers were struggling to pay their bills as a consequence of cost of living pressures.

In terms of the national context, latest figures for annual Council Tax in-year collection outturns 2023/24 saw City of Lincoln Council at 246^th (2022/23- 240^th) and North Kesteven 20^th (2022/23- 9^th) out of 296 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2023/24 City of Lincoln and North Kesteven achieved 6^th and 1^st highest collections, respectively.

In respect of Business Rates, up to the end of Quarter 1 2024/25 compared to the same point in 2023/24, in-year collection was down for Lincoln by 0.60%, North Kesteven up by 2.27% and West Lindsey down by 1.82%. At the end of August 2024, the figures painted a relatively similar figure for in-year collection with Lincoln collection down by 0.65% compared to August 2023, North Kesteven down by 0.87%, and West Lindsey down by 2.42%. There were no major concerns with in-year collection at this early stage of the year. It should also be noted that collection has 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 2023/24 saw City of Lincoln Council’s in-year collection at 96^th (2022/23 22nd), North Kesteven 39^th (2022/23 14^th) and West Lindsey 95^th (2022/23 162^nd) out of 296 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2023/24, City of Lincoln, North Kesteven and West Lindsey achieved 4^th, 2^nd and 3^rd highest collections, respectively.

The number of outstanding Revenues Customers at the end of Quarter 1 2024/25 was 3,005 (split Lincoln 1,834, North Kesteven 1,171) – this compared to 797 (split Lincoln 609, North Kesteven 188) at Quarter 1 2023/24. At the end of August 2024, the figures were very similar in nature. There had been, and continued to be, significant demands on the team plus recruitment having only just taken place in respect of vacant positions. It should also be noted that from 2024/25 Revenues items outstanding also included those from the Citizens Access Revenues self-serve portal, so there would effectively be a new ‘baseline’ for this measure of performance.

As at the end of Quarter 1 2024/25, in period collection of Housing Benefit overpayments stood at for City of Lincoln 124.63%, and North Kesteven 90.42%.

Outstanding Housing Benefit overpayments debt also continued to decrease overall. As at the end of Quarter 1 2024/25: at £2,135,045 for City of Lincoln and £1,190,944 for North Kesteven. At the end of August 2024, Housing Benefit overpayments collection debt stood at more than 100% for both authorities.

As at the end of Quarter 1 2024/25, there were 4,908 Benefits customers outstanding and awaiting assessment (split Lincoln 2,997, North Kesteven 1,911). This figure was higher than at the same point last year, Quarter 1 2023/24 (3,682 Benefits customers outstanding and awaiting assessment (split Lincoln 2,622, North Kesteven 1,060)). Demands on the team continued to be high, as well as there being a number of unforeseen staffing absences.

There continued to be a significant demand on the Benefits Team, particularly in relation to (but not exclusively) Universal Credit - related information impacting on Housing Benefit and Council Tax Support claims. At the same time, Benefits Officers were also working on other schemes, such as Discretionary Housing Payments, and Household Support Fund.

Direction of travel was positive at the time of writing this report, with overall outstanding work reducing to 2,842 (split Lincoln 1,936, North Kesteven 906) by 5 September 2024.

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 Quarter 1 2024/25 City of Lincoln turned around new benefits claims in 14.20 days and North Kesteven in 17.61 days respectively. Changes of circumstances notifications were dealt with by City of Lincoln in 4.54 days and 6.72 days for North Kesteven respectively. As at end of August 2024, figures for changes of circumstances notifications were similar to that at Quarter 1 the previous year.

The latest national data available showed that in Quarter 4 2023/24 New Claims were processed in an average of 19 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 decreased 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 2023/24) and not cumulative over the financial year – which was how officers reported these areas of performance for our shared service.

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 2024/25:

• City of Lincoln:    96.68% (466 out of 482 checked),
• North Kesteven:  98.14% (264 out of 269 checked).

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

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 2024/25.

Outcomes and demands had generally increased throughout the team, for both partner local authorities. 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).

Members offered their thanks to all members of staff in recognition of the performance achievements within the Revenues and Benefits Shared Service, particularly with added pressures.