WORCESTERSHIRE DISTRICTS REVENUES AND BENEFITS SHARED SERVICE DETAILED

WORCESTERSHIRE DISTRICTS REVENUES AND BENEFITS SHARED SERVICE DETAILED BUSINESS CASE Wyre Forest District Council

WYRE FOREST REVENUES AND BENEFITS SERVICE REVENUES Ø Council Tax - Ø Business Rates - Issue of 42, 000 Annual Council Tax bills, administer and recovery of overdue bills. Issue of 3, 500 Annual Business Rate bills, administer and recovery of overdue bills. BENEFITS Ø Benefits Paid - Housing and Council Tax Benefits £ 25 m p. a. Ø Number of Claimants - 8, 700 average at any one time 4, 800 new claims each year 13, 100 change of circumstances STAFF NUMBERS - 60 members of staff (53 FTE’s) are employed in Revenues & Benefits.

GIVENS The following “givens” have been agreed…. . . Ø Retain the original Shared Service Principles (Local Government solution not outsourcing) Ø The Shared Service must have a single management structure Ø Improve Service Delivery and Performance Standards for everyone Ø The Shared Service must be located in Worcestershire Ø The performance target will be ‘Better than the Best’ Ø The model must deliver savings for all Districts Ø There must be clear and agreed Service Level Agreements between: w The Shared Services Organisation and the Worcestershire Hub w The Shared Services Organisation and each of the member Council’s Ø There will be a Joint Committee for Governance, including arrangements for a host Council Ø The model must be scalable (for e. g. 6, 5, 4 Districts) Ø Retain Local Identity

THE BUSINESS CASE Ø The Business Case proposes a Revenues and Benefits Shared Service for the 6 Worcestershire Districts which will be seen as a pilot for future national service provision Ø Detailed Business Case nearing completion (31 st August 2006) Ø Produced by Countywide Project Board, Chaired by Patrick Birch WCC with project management provided by PWC Ø The Business Case has been compiled using research and information provided by the following Work Streams: w Governance w Revenues and Benefits (Performance, Staffing Levels, Hub) w ICT (New systems and networks) w Human Resources w Support Services w Financial Analysis and Modelling w Communications

WHAT IS BEING PROPOSED THE BUSINESS CASE PROPOSES: Ø The Worcestershire Hub at the heart Ø A Shared Service Organisation which includes single management, Specialist Services and Common Processes Ø A Host Authority Ø Support Services provided by a single authority probably the Host Ø Streamlined Management Structure Ø Streamlined Flexible Staffing Structure Ø An assumed start date of 1 st April 2007 Ø Two year implementation period

WHAT IS BEING PROPOSED SERVICE IMPROVEMENTS Ø The Business Case assumes the following service improvements: w Quicker processing of benefits w Improved accuracy of benefit claims w Improved Revenue Collection for Council Tax and Business Rates w Improved customer focus Ø Wyre Forest current performance for Revenues and Benefits was national top quartile in 2005/2006 and on average second in the County

WHAT IS BEING PROPOSED COST SAVINGS Ø Savings in the region of £ 8 m for all partners over a ten year period after allowing for investment of £ 5 m for new ICT and Business Process Re-engineering Ø For Wyre Forest our assumed savings over a ten year period are £ 2. 5 m after allowing for an investment contribution of £ 650, 000 w These savings assume that we can reduce our current Support Services costs currently charged to Revenues and Benefits to 25% w These savings will not be a contractual commitment and therefore any over or under estimate of cost will amend the projected savings

GOVERNANCE ARRANGEMENTS Ø The proposal establishes a Joint Committee of elected members with one member from each Council including the County Ø An Officer Shared Services Steering Group including Secretary and Treasurer will provide support to the Joint Committee Ø Revenues and Benefits Shared Services Manager will report to both the Officer Shared Services Steering Group and the Joint Committee

EMPLOYEE ARRANGEMENTS Ø Centrally located Management Structure at Host Authority Ø Flexible Working envisaged for Council Tax and Benefits: w H. Q. Working (at Host Authority) w Local Working (at District Council Offices) w Home Working w Mobile Working Ø Specialist located teams (probably at Host) for: w Business Rates w Debt Recovery w Benefit Fraud w Systems Administration Ø Managerial Posts/Team Leaders will be advertised Ø Wherever possible all other staff will be allocated to new posts Ø Existing staff will initially be seconded to Host Authority with the longer term intention to TUPE transfer Ø Overall reduction in staffing numbers will be handled sensitively. There is strong evidence to suggest that the level of natural staff turnover is such that the need for redundancies will be negligible or not at all.

SUPPORT SERVICES A Revenues and Benefits Shared Service would have a significant impact on Support Services currently provided for the Revenues and Benefits Sections Ø Currently we have the following areas of recharge to the Revenues and Benefits Sections: w Finance Accountancy Support Services Internal Audit w Human Resources ICT Payroll Personnel w Legal and Democratic Services Legal Services Ø 40 Staff currently charge their time to Revenues and Benefits equivalent to 9 FTE’s Ø Recharge approximately £ 600, 000 per annum Ø Financial model assumes 75% of above cost can be saved Ø A decision to commit to Revenues and Benefits Shared Services is likely to lead to further Countywide Shared Services Initiatives for the above services

PROPOSED TIMETABLE FOR CONSIDERATION/DECISION MAKING Ø Countywide Chief Executive’s Panel Ø Presentation to Trade Unions / Workforce representatives Ø Consultation with Unions/Staff at County and Local Level Ø Scrutiny of proposals by Efficiency Policy and Scrutiny Panel Ø Countywide Leaders and Chief Executives Panel Ø Cabinet Ø Council 8 th Sept. 2006 13 th Sept. 2006 Sept/Oct. 2006 24 th Oct. 2006 26 th Oct. 2006 15 th Nov. 2006

THE DECISION Ø Revenues and Benefits Shared Services is the biggest single issue the Council will have to consider with regard to the transfer of services and staff since the transfer of the management of the Leisure Centres. Ø A decision to transfer Revenues and Benefits will be the catalyst for the transfer of other services. Ø Could change the future nature of service delivery for Wyre Forest.