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 26 February 2025.

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 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 it continued 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 some time

In respect of Council Tax, up to the end of Quarter 2 2024/25, in-year collection for Lincoln was down by 0.20% and North Kesteven down by 0.36% respectively. At the end of November 2024, (comparing to end November 2023),all Lincolnshire Districts’ Council Tax and Business Rates in-year collections were down. The figures would be circulated to members of Shared Revenues and Benefits Joint Committee after this meeting.

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, the 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 of those 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 2 2024/25 compared to the same point in 2023/24, in-year collection was up by 1.44% for Lincoln; North Kesteven down by 0.42% and West Lindsey down by 1.32%.

In terms of the national context, the latest available figures were for annual Business Rates in-year collection outturns 2023/24. City of Lincoln Council’s in-year collection was 96^th (2022/23 22^nd), 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.

There were no major concerns with in-year collection at this early stage of the year. 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 2024/25 was 3,365 (split Lincoln 2,317, North Kesteven 1,048) – this compared to 1,376 split Lincoln 688, North Kesteven 688) at Quarter 2 2023/24. 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. Officers could report that direction of travel since the end of September 2024 had been positive, but challenging.

To give some context as to the workload of the Revenues Team, in Quarter 2 2024/25 10,643 items of post were received, 7,683 telephone calls taken, and 6,417 e-mails received.

As at the end of Quarter 2 2024/25, in period collection of Housing Benefit overpayments stood at City of Lincoln 127.16%, and North Kesteven 83.87%.

Outstanding Housing Benefit overpayments debt also continued to decrease overall. As at the end of Quarter 2 2024/25: at £1,918,146 for City of Lincoln and £1,167,258 for North Kesteven.

As at the end of Quarter 2 2024/25, there were 2,554 Benefits customers outstanding and awaiting assessment (split Lincoln 1,670, North Kesteven 884). This figure was higher than that at the same point last year (1,697 Benefits customers outstanding and awaiting assessment (split Lincoln 1,156, North Kesteven 540)). Demands on the team continued to be high, as well as there being a number of unforeseen staffing absences. However, direction of travel was positive – the outstanding figure had reduced by 2,354 from the end of Quarter 1 2024/25 to the end of Quarter 2 2024/25. As of today, 5 December 2024, there were 1,145 Benefits customers outstanding for Lincoln and 493 for North Kesteven.

There continued to be a significant demand on the Benefits Team, particularly in relation to (but not exclusively) Universal Credit - related information which  impacted 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 2 2024/25 City of Lincoln turned around new benefits claims in 13.78 days and North Kesteven in 17.46 days respectively. Changes of circumstances notifications were dealt with by City of Lincoln in 5.18 days and 6.93 days for North Kesteven respectively. As of today, 5 December 2024, figures for new benefits claims stood at approximately 13 days for Lincoln and 16 days for North Kesteven.

To give this position some context, the latest national data available showed that in Quarter 1 2024/25 New Claims were processed in an average of 21 days by Councils, with Changes of Circumstance being processed in an average of 8 calendar days.

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 2 2024/25:

• City of Lincoln:    95.13% (684 out of 719 checked),
• North Kesteven:  97.95% (525 out of 536 checked).

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

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 2 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 compared to North Kesteven.

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