Item 09 - The Provision of Managed Work for Housing Benefit and Council Tax Reduction
West Dunbartonshire Council · 4 February 2026
Back to Corporate Services Committee — 4 February 2026 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Corporate Services Committee: 4 February 2026 ___________________________________________________________________ Subject: The Provision of Managed Work for Housing Benefit and Council Tax Reduction 1. Purpose 1.1 The purpose of this report is to seek Committee approval to procure the provision of managed work associated with the processing of Housing Benefit and Council Tax Reduction claims. 2. Recommendations 2.1 It is recommended that the Committee approves the procurement of the managed work associated with the processing of Housing Benefit and Council Tax Reduction for a 2 year period with the option on the Council’s part to extend for a further 2 x 12 month period subject to continued funding from Department for Work and Pensions as per paragraph 4.2 of this report. 3. Background 3.1 The Council processes Housing Benefit and Council Tax Reduction claims and change of circumstances for claimants in our area that require assistance towards their rent and/or council tax. 3.2 The impact of welfare reform and other UK Government initiatives has resulted in an increase in demand and workload for the teams involved in processing these claims and changes of circumstances. 3.3 The performance of the Council in relation to processing time for new claims and change of circumstances is monitored extremely closely by the Department for Work and Pensions and is subject to both internal and external audits. It is also essential to point out that timely processing of Housing Benefit and Council Tax Reduction is critical to the Council maximising its rent and council tax collection. 3.4 On 8 September 2021, the Committee approved the tender for the provision of managed work for Housing Benefit and Council Tax Reduction with an annual spend up to £75,000 which is currently in the final year of the contract. 4. Main Issues 4.1 It was anticipated that councils would see a reduction in caseload due to the introduction of Universal Credit however this has not been the case as the ITEM 9
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workload has increased due to the additional work required to obtain and process Council Tax Reduction claims from Universal Credit claimants. 4.2 The Department for Work and Pensions is providing Councils with new burdens funding on an annual basis and the intention is to use the new burdens funding towards the managed work contract up to £60,000 per year. At this point it is anticipated that this funding will continue to be available for the next 4 years, however any change, i.e. reduced levels of new burdens funding from Department for Work and Pensions, could lead to reductions in the scale of the managed work contract used each year. 4.3 The use of a managed work contract allows the section to manage the demands of the service, assisting with reduction in staff because of turnover and sickness absence/maternity leave, whilst maintaining performance at expected levels. Housing Benefit and/or Council Tax Reductions applications or change of circumstances are allocated to the company, who process these in line with legislation requirements in the same way a member of the Revenues and Benefits team would. 4.4 It is anticipated that in any single financial year no more than £60,000 would be required and any use of this external resource would be a last resort and used only as necessary. 5. Options Appraisal 5.1 Consideration has also been given to realigning the Revenues and Benefits team (moving staff) between the three areas i.e. Housing Benefits, Council Tax and Corporate Debt. Whilst there are some similarities between Housing Benefits and Council Tax there are differences which will require a level of training if staff are moved to Housing Benefits and movement of staff would also impact on Council Tax performance, which would not be acceptable. In relation to Corporate Debt, the work is very different from Housing Benefits team and would require full training and this would impact the monies brought in by this team in terms of Rent, Council Tax and Sundry debt. Therefore, this was ruled out as a viable option. 6. People Implications 6.1 There are no people implications. 7. Financial & Procurement Implications 7.1 The Department for Work and Pensions provides funding to mitigate the welfare reform changes which will be used to fund this along with the budget held until vacant posts are filled. There will therefore be no additional cost to the Council. 7.2 All procurement activity carried out by the Council in excess of £50,000 is subject to a contract strategy. The contract strategy for the provision of
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managed work for Housing Benefit and Council Tax Reduction will be produced by the Corporate Procurement Unit in close consultation with Revenues and Benefits officers. The contract strategy shall include but may not be limited to; contract scope, service forward plan, the market, procurement model and routes – including existing delivery vehicles, roles and responsibilities, risks, issues and opportunities and ongoing contract management. 7.3 The provision of managed work for Housing Benefits and Council Tax Reduction will contribute to delivery of the Council strategic priorities through continuing to provide high quality Housing Benefit and Council Tax Reduction services and support individuals, families and carers live independently and with dignity by ensuring Housing Benefit and Council Tax Reduction claims and change of circumstances are processed efficiently and accurately. 8. Risk Analysis 8.1 The Department for Work and Pensions no longer set national targets however they monitor the speed of processing new claims and change in circumstances performance on a quarterly basis. If there is an increase in the processing times, the Department for Work and Pensions Performance Development Team will contact the Council to discuss this and would be placed on performance monitoring framework. Failure to improve, could result in intervention by the Performance Development Team and there could be a financial risk to the Council in terms of lost subsidy. Any processing delays can result in overpayments of benefit which require to be recovered and impact the subsidy levels received from Department for Work and Pensions. 9. Equalities Impact Assessment (EIA) 9.1 An equalities screening carried out did not identify any equality considerations. 10. Consultation 10.1 The views Procurement and Legal Services have been requested on this report and have advised there are neither any issues nor concerns with the proposal. 11. Strategic Assessment 11.1 Sound financial practice and budgetary control are imperative to assist with the governance of the Council and supports officers of the Council in achieving the five strategic priorities of the Council’s Strategic Plan. This report forms part of the financial governance of the Council.
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…………………………………………… Laurence Slavin Chief Officer - Resources Date: 12 January 2026 Person to Contact: Ryan Chalmers, Section Head, Church Street, Dumbarton. Email: ryan.chalmers@west- dunbarton.gov.uk Appendices: None Background Papers: Report to Corporate Services Committee, 8 September 2021 Wards Affected: All Council wards.