Minutes:
Committee members received a presentation on the Council’s Housing and Council Tax benefits system.
Members were advised that Housing Benefit to help individuals to pay their rent, both Council Tenants and Private Sector Tenants, was paid to over 14,000 residents at a total cost of £89,000,000 during 2012/13.
Council Tax Support was paid to over 19,000 residents at a total cost of £22,000,000 during 2012/13.
Members were given a detailed description of how new claims and changes to existing claims were processed.
Over the years the number of customers receiving HB / CTB (CTS) had increased. October 2008, saw the start of the recession and an increase in the number of customers claiming within Havering, particularly customers renting privately and claiming Housing Benefit. Between November 2008 and December 2009, Havering’s Housing Benefit caseload increased by over 14%, the largest of all London Boroughs. With no improvement in the economy the caseload had continued to rise over the years as has the expenditure.
Despite the increase in caseloads over the years the number of Benefit Officers employed within the Service hadn’t changed except where increased Admin (recession) funding was provided by Central Government for 2009 / 10 & 2010 /1. During those two years, despite the recession, owing to the funding and the increased number of staff the Council recorded its best performance figures. Recession funding from the Government had since reduced and with it the number of Benefit Officers affecting performance.
The cause of the backlog in outstanding claims was due to a number of reasons. The economy wasn’t improving and the number of claims being received continued to rise. In addition to the number of new claims being received there had been a significant increase in the number of records received from the DWP compared to 2011 / 12. In July 2011 the DWP started to automatically send the Council changes in customers Tax Credit entitlement (“ATLAS” records). From January 2012 the ATLAS records had increased to include changes to all state benefits and other changes the DWP have become aware of.
The end of February and throughout March were the busiest times of year due to “annual billing” as the new Council Tax Bills began to be received.
The Council have also introduced this year the new Council Tax Support scheme, replacing Council Tax Benefit and prepared for the other Welfare Reform changes including: Under occupancy rules within the Social Sector and the Benefit Cap.
Going forward funding had been secured to temporarily employ Liberata’s resilience processing team to help clear the outstanding work. Existing staff would continue to prioritise new claims, urgent cases, more recent Change in Circumstances and correspondence received via the DWP. Overtime would also be provided. With the introduction of Universal Credit over the next 12 months, the Council would not recruit into vacant posts but would continue to use Serco staff as an extension of the Council’s staff. New Initiatives implemented during 2012 / 13 including On line Claims and Risk Based Verification to increase the speed of processing should begin to be realised. During 2013 / 14 the Council intended on automating the assessment of the Atlas records received from the DWP.