Revenues and Benefits Update
North Lanarkshire Council · 24 May 2023
Back to Finance and Resources Committee — 24 May 2023 and its agenda
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK / GT Date 24/05/23 Revenues and Benefits Update From Elaine Kemp, Chief Officer (Finance) E-mail kempe@northlan.gov.uk Telephone 01698 302408 Executive Summary This report provides an update on the performance within the Revenues and Benefits functions of Financial Solutions as at 31 March 2023. Key points to note include: • As at 31 March 2023, 94.89% of Council Tax due for 2022/23 had been collected. This is an increase of 0.28% on the same period last financial year. • Non-Domestic Rates collection has shown a year-on-year increase from 93.68% to 31 March 2022 to 94.43% to 31 March 2023 • The service continues to meet statutory timescales for administering benefits applications and changes of circumstance. • The service continues to support the administration of Cost-of-Living support measures. Recommendations It is recommended that Committee: (1) Acknowledges the content of the report. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions
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1. Background 1.1 Financial Solutions is responsible for the administration and collection of all local taxation in North Lanarkshire in the form of Council Tax and Non Domestic Rates. 1.2 In addition, the service administers a number of Benefits for residents of North Lanarkshire including Housing Benefit, Council Tax Reduction, Scottish Welfare Fund, Discretionary Housing Payment, Free School Meals and Clothing Grants. 1.3 During the course of the Covid-19 health pandemic and with the current cost of living crisis, the Service has supported thousands of North Lanarkshire’s residents with support payments for schemes such as Self Isolation Support Grant, Fuel Hardship Payment, Pensioner Fuel Grant and the North Lanarkshire Child Payment. 2. Report Council Tax 2.1 The graph below shows the cash collected at 31 March for each financial year. It is worth noting that cash is allocated to specific Council Tax years so the graph represents cash received against the initial billing year (i.e. billed and received in 2021/22) and does not include cash collected in subsequent years (i.e. billed in 2021/22 but received in 2022/23). This ensures a like for like comparison. 2.2 The collection figure for the current financial year of 94.89% is 0.28% higher than the same period last financial year. However, the current year collection figure has benefited from the impact of the Scottish Government’s Cost of Living Award. Total cash received from the Scottish Government of £18.6m has been allocated to 2022/23 which may be improving Council Tax collection figures for 2022/23. 2.3 Members will recall that this one-off £150 credit to Council Tax accounts for eligible households will reduce Council Tax bills throughout 2022/23. 2.4 It should be noted that in-year collection of Council Tax is a Statutory Performance Indicator. However, it does not reflect the overall collection rate of Council Tax which includes collection of prior year arrears. This latter measure has a greater bearing on the Council’s finances and is reflected in the regular budget monitoring reports to Committee. 90 91 92 93 94 95 96 97 98 99 100 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Percentage of annual billing collected (%) Financial Year Council Tax Collection Rate at 31 March
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Non-Domestic Rates 2.5 The following graph shows the cash collected at 31 March for each financial year. 2.6 The collection figure for 2022/23 at 31 March is 94.43%; 0.75% higher lower than the same period last financial year; demonstrating greater in year collection for NDR during 2022/23. Revised recovery processes for Non-Domestic Rates were implemented during 2022/23 which has led to earlier recovery action in the financial year. This earlier engagement with businesses has improved overall collection rates, 2.7 The Scottish Government has now ended the 100% rates relief for the retail, hospitality, and leisure sectors for the 2022/23 financial year. In a change from the previous scheme, 50% relief is awarded to one property for the period 1 April to 30 June 2022. Housing Benefits 2.8 The data below highlights the Statutory Performance Indicators measuring the speed of processing for new Housing Benefit claims and for changes in circumstances. The table shows the cumulative figures for the year to 31 March 2023. The Scottish average comparator is based on the latest information published by DWP at Q4 2021/22. Days to Process 2021/22 2022/23 Quarter 4 2021/22 Scotland Average New Claims 13 15 17 Change of Circumstances 7 8 3 2.9 The service continues to perform well in the speed of processing for new claims compared to the previous financial year and the most recent Scottish average. The service also continues to meet statutory requirements for the speed of processing changes of circumstance. Council Tax Reduction Scheme 2.10 As at 31 March 2023 a total of £24.383m in Council Tax Reduction has been awarded for the 2022/23 financial year. This compares to £23.989m to the same period during 2021/22, representing a small increase of £0.394m (1.6%). 90 91 92 93 94 95 96 97 98 99 100 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Percentage of annual billing collected (%) Financial Year Non Domestic Rates Collection Rate at 31 March
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2.11 The service received 6,685 applications between 1 April 2022 and 31 March 2023 compared with 6,623 during the same period during 2021/22, representing a small increase of 0.9%. 2.12 The service continues to see a downward trend in the volume of changes in circumstances requests. From 1 April 2022 to 31 March 2023 a total of 92,711 changes were processed compared to 133,403 the previous financial year; a decrease of 30.5%. Discretionary Housing Payments 2.13 From 1 April 2017 funding for DHP has been devolved to Scottish Government. This funding supports both the Scottish Government’s commitment to fully fund the implications of the Bedroom Tax and an additional sum available for other reasons such as the Benefit cap and the restrictions on Local Housing Allowance rates. 2.14 From 1 January 2023 the Scottish Government is fully funding the implications of the benefit cap as per the Scottish Ministers wishing to see the benefit cap mitigated as far as possible within devolved powers. This was announced as part of the tackling child poverty delivery plan; Best Start, Bright Futures in March 2022. Local authority Leaders have agreed to fuller benefit cap mitigation through the DHP scheme from 1st January 2023. The Scottish Government is adding funds to the 2022/23 DHP budget to cover the cost of claimants’ benefits removed by the cap between the periods 1st January to 31st March 2023. 2.15 As at 31 March 2023 the total paid in respect of Bedroom Tax was £5.374m. In comparison this sum was £5.351m as at the same point in 2022. 2.16 In addition the Council also receives £0.603m in respect of non-bedroom tax related issues. The Scottish Government also provided an additional £0.131m of an underspend funding distribution. Then late into 2022/23, an additional £0.146m was provided as part of an overall allocation of £2.5m across Scottish local authorities, which part of could be carried forward to be used in 2023/24 if not fully spent. This increased the annual budget to £0.881m. As at 31 March 2023 £0.759m (86%) has been paid or committed from the fund; the remaining £0.122m (14%) will be carried forward for use in 2023/24. 2.17 The Service will continue to liaise with colleagues in Housing Solutions and Housing Associations to encourage applications to the fund. Scottish Welfare Fund 2.18 The Council has administered the Scottish Government’s Scottish Welfare Fund (SWF) since 1 April 2016. 2.19 The Scottish Government provides an annual award budget of £2.760m to North Lanarkshire Council. In recognising the current cost of living crisis, the Council’s Investment Budget for 2022/23 allocated an additional £0.500m on a one-off basis. In addition, the Council allocated £1.142m on a one-off basis from the Scottish Government’s Financial Insecurity Fund to support the maintenance of Scottish Welfare Fund at Medium priority during 2022/23. In addition, additional Scottish Government funding of £0.195m was received late in the financial year in recognition of the continuing impacts of the cost-of -living crisis. Therefore, the total award budget for 2022/23 was £4.597m. 2.20 There are two grant schemes and their relative performance during 2022/23 and prior year comparison is as follows:
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2022/23 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 20,876 15,942 4,934 76.4% Community Care Grants 6,246 4,533 1,713 72.6% Total 27,122 20,475 6,647 75.5% 2021/22 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 18,258 13,557 4,701 74.2% Community Care Grants 6,472 4,965 1,507 76.7% Total 24,730 18,552 6,208 75.0% 2.21 As at 31 March 2023, the total financial value of grants paid from the Scottish Welfare Fund amounted to £4.807m which represents 104% of the total budget for the current financial year. The year end overspend of £0.210m is reflective of the increased demand for grants with an increase in awards for Crisis Grant of 17.6% in 2022/23 compared to 2021/22. In addition, the average value of awards has increased during 2022/23; with a 6.5% increase in average award for Crisis Grants and 11.1% increase in average award for Community Care Grant. 2.22 The overspend on Scottish Welfare Fund is fully offset by additional administration grants received by the service to support UK Government and Scottish Government grant schemes. 2.23 Despite fluctuating demand, the Service continues to assess applications within the timescales outlined within Scottish Government guidance. Crisis applications are assessed within the two working day time limit and Community Care Grants within the fifteen working day limit recommended by the Scottish Government. Self-Isolation Support Grant 2.24 On 12 October 2020, Scottish Government introduced a self-isolation support grant. The grant was initially intended to provide a £500 payment to those employed or self- employed on a qualifying benefit who will lose earnings as a result of being required to self-isolate and are unable to work from home. This scheme was administered as a Crisis Grant. 2.25 The scheme was revised on 1 May 2022 to reflect changes in the public health advice relating to Covid-19 with the removal of asymptomatic testing on 18 April 2022 and symptomatic testing on 30 April 2022. Eligible applicants were then entitled to an award of £225 with it now being linked to the Real Living Wage. In addition, the Scottish Government introduced a three claim cap in a 12 month period. 2.26 In late December 2022 the Scottish Government confirmed the closure of the scheme to new applicants on 5 January 2023. Anyone who had booked a PCR test through the scheme portal on or before this date can apply for the grant up to 28 days from their positive PCR test result. 2.27 As at 31 March 2023, for the 2022/23 financial year the Council received 1,366 applications and awarded a total of 676 with a combined value of £0.246m.
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Cost-of Living Support 2.28 The Policy and Strategy Committee on 29 September 2022 considered three separate cost-of-living support payments for low-income households. These are being administered by Financial Solutions. 2.29 The Fuel Hardship Payment for working low-income households not in receipt of benefits or other government supports was launched in October. The funding available can support a maximum of 14,000 payments. 2.30 As at 16 April 2023, the Council had received 6,189 applications for the Fuel Hardship Payment. A total of 3,572 (57.7%) have been awarded totalling £0.536m and 2,606 have been rejected because the applicant was ineligible (42.1%),the service was awaiting additional information on 11 further applications. 2.31 The Pensioner Fuel Grant was initiated in November 2022 with the Council writing to 8,560 eligible households to provide bank details to ensure the £100 grant payment can be made directly to their bank accounts. 2.32 As at 16 April 2023, 7,886 payments have been made to eligible households (92%). A total of 515 (6%) eligible pensioners have not responded or died prior to returning a bank mandate. The service is currently dealing with 146 cases where additional information is required. 2.33 Finally, the North Lanarkshire Child Payment was processed in late 2022 for the parents / guardians of 12,487 eligible children. 2.34 Lower than anticipated demand for some of these schemes, particularly the Fuel Hardship Payment, has meant there was a year end underspend at 31 March 2023. This was considered at the Wellbeing and Tackling Poverty Committee on 5 May 2023 and agreed that £1.487m of residual resources would be transferred to the Scottish Welfare Fund to allow for priority levels to be maintained at ‘Medium’ level during 2023/24. 3. Measures of success 3.1 Continuous improvement in processing and collection rates. 4. Supporting documentation None Elaine Kemp Chief Officer (Finance)
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts have been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact?
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Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.