Strategic Management
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Source: BFI inspection assessment
This and all subsequent radar graphs show the levels of performance for each of the elements of individual Performance Standards. The Standard score is the level of performance that needs to be achieved for the local authority to be at Standard. BFI assessment is the level of performance that has been achieved. Where the assessment score exceeds the standard score, for example, on ‘cost of claims’, the local authority is performing above Standard.
2.1 Benefit administration has to be set within the much broader context of a local authority’s overall strategies and responsibilities towards, for example, neighbourhood renewal, alleviating poverty, preventing homelessness, helping people into work and enhancing consumer choice.
The vision
2.2 We found that Rhondda Cynon Taf was not at Standard in this element because it did not have a strategic vision in relation to the Benefits service. A strategic vision would enable the Benefits service to build on the existing operational management arrangements and provide Members and particularly benefit managers and staff with a clearer sense of direction and focus for their work. This, in turn, has limited its ability to achieve the requirements of the Standards in many other areas.
2.3 However, components existed within other documents which could be brought together to provide the vision.
2.4 The Community Plan, dating from April 2000, is Rhondda Cynon Taf’s overarching strategic document, from which all other council strategies and plans are derived. It sets out the long-term goals for improvement in the 5 main areas of focus identified for the council’s activities:
- regeneration
- learning
- health
- a caring society
- a shared identity.
2.5 The plan also sets out key objectives:
- to put in place improved benefits advice and information services
- to create a new Social Inclusion Strategy, targeted to reduce poverty and other barriers to participation in society for children and the elderly
- to provide better support to families suffering deprivation, and to children and young people.
2.6 As this report shows, Rhondda Cynon Taf has been improving benefits, but at the time of our inspection, 2 years after the Community Plan was produced, the Social Inclusion Strategy, had not been developed. The Community Plan does not, despite the third objective, set out steps that might be taken to deal with deprivation, such as encouraging benefit take-up.
2.7 The Welsh Assembly Government Index of Multiple Deprivation shows that more than half of the Electoral Divisions within Rhondda Cynon Taf fall within the top 20% of the most deprived areas in Wales. Rhondda Cynon Taf told us that the Community Plan was under review and this would provide the opportunity to emphasise the role HB and CTB could play in alleviating poverty and social exclusion.
2.8 The Revenues and Benefits unit is part of the Finance Division, within the Corporate Services Group, which has the following mission statement:
To deliver efficient and effective financial services which reflect the needs and exceed the expectations of our customers and clients through the delivery of quality financial services.
2.9 The Revenues and Benefits unit itself has a mission statement as follows:
We aim to send accurate bills on time and offer a wide and flexible range of payment methods. We will pursue and collect all debts effectively, efficiently and at the lowest possible cost.
We aim to assist customers claiming benefit by developing a responsive Benefits service. To achieve this, the service will provide support where needed, encourage honesty, but will tackle fraud and abuse to protect public funds.
We will work with our customers to continually review and improve the services we provide. We aim to keep our promises and to get things right first time.
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Policy objectives
2.10 It is essential that authorities support the strategic vision with high-level policies and clear objectives for the Benefits service, which together should:
- eliminate the need for senior managers to make recurring or routine decisions
- provide a systematic way of delegating operational decisions in a manner that will sustain consistency of approach and equity of service
- be linked to its high level strategic and business plans.
2.11 Rhondda Cynon Taf was not at Standard in this element. However, the Revenues and Benefits unit has a business plan, which provides a firm foundation from which to develop. We also found that Rhondda Cynon Taf has good liaison with internal and external stakeholders and discuss with them service changes that impact on them.
2.12 To achieve Standard Rhondda Cynon Taf needs to develop policy objectives that:
- are directly linked to a vision
- include objectives to meet, over time, the full range of Standards
- are reviewed as part of the annual planning cycle
- are endorsed annually by Members
- specifically include minimising backlogs.
2.13 The existence and contents of the business plan need wider communication. The Revenues Manager developed the plan with minimal consultation with staff, to meet the timescale for completion of the plan. Future plans need to be developed through a participative process to ensure ownership and that the objectives are based on current reality. Members had not approved the business plan.
2.14 The business plan contains the strategic aims of the unit, to:
- provide a quality billing, collection and recovery service that maximises revenue collection and cash flow and minimises arrears and write-offs
- provide a Benefits service that aims to pay the right person the right amount at the right time
- be responsive to the needs of its customers
- provide a high quality service at an economic cost.
2.15 The business plan also sets out the Revenues and Benefits unit’s key service objectives under the following headings:
- development
- customer care
- building the Revenues unit
- integrated approach
- management
- quality initiatives
- professionalism
- efficiency
- equalities
- business objectives
- action plans.
2.16 The objectives do not include a target to specifically minimise backlogs (work in progress). At the time of our inspection Rhondda Cynon Taf’s Benefits service had a considerable amount of work in progress and whilst we were on-site, in September 2002, an initial project plan to reduce the amount of work in progress was produced.
2.17 The business plan only contains high level targets. There are no key milestones against which to measure progress.
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Operational planning
2.18 Operational planning ensures that resources are effectively managed and monitored to deliver service standards and performance targets.
2.19 An operational plan for administering HB and CTB translates the vision, policies and objectives into practical ways of providing a service. Effective operational plans will allow any changes that are required to improve the HB and CTB service to be managed.
2.20 Plans can only be effective if they are developed, used, monitored and adapted to meet changing circumstances. Managers and staff need to be convinced that the plans are realistic and achievable.
2.21 Rhondda Cynon Taf was not at Standard in this element. However, the business plan states that any targets set should be challenging, realistic and aspirational and should reflect the aim to put the performance of the authority within the upper quartile of Welsh Assembly Government Performance Indicators. Rhondda Cynon Taf told us that it aims to achieve upper quartile performance by 2006/07, but this was not made clear in any document.
2.22 To achieve Standard Rhondda Cynon Taf needs to develop its operational plans so that they:
- link to a vision
- take account of peaks and troughs in workload or resource availability and the resources needed to implement change
- refer to overpayment recovery and counter-fraud operations.
2.23 Rhondda Cynon Taf has a number of action plans for the Benefits service. They are contained in the business plan, the Best Value review and the HB and CTB action plan. This makes monitoring and reporting complex.
2.24 None of the action plans take into account the peaks and troughs in resource availability and workload. However, the Revenues Manager, with the approval of the Divisional Director, was able to appoint additional benefit staff, using funding made available from vacant posts throughout the Revenues and Benefits unit.
2.25 The action plans do not prioritise different objectives. The Best Value review acknowledged that key objectives need to be identified and properly monitored.
2.26 Responsibility for delivering the objectives was defined in all of the action plans. The Revenues Manager is accountable for delivery against each of the plans. However, we were told by a senior officer that at the time of the on-site phase of our inspection, monitoring of achievement against the plans had temporarily lapsed because of pressures associated with implementing a new document image processing system.
2.27 Whilst the impact of plans was not communicated to all stakeholders many issues were discussed with landlords and voluntary advice agencies on a regular basis.
2.28 Rhondda Cynon Taf identified a project manager to introduce its document image processing system and interim targets were set, monitored and revised where necessary. However, the Best Value review states a need to adopt more formal project management techniques, including project steering groups and the appointment of a specialist project manager.
2.29 Business cases put forward by the Benefits service were generally well reasoned and therefore obtained support from Members and senior officers. If the business plan was amended to include resource requirements and endorsed by Members then the allocation of resource, within budgetary constraints, could be better supported.
2.30 Rhondda Cynon Taf told us that performance against Welsh Assembly Government Performance Indicators was reported quarterly to Members and it planned for Members to resume monitoring of progress against action plans, through the Standing Task Teams that had been established.
2.31 Rhondda Cynon Taf has a documented and tested disaster recovery plan, but it had not been widely communicated to staff.
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Performance targets
2.32 Performance targets underpin policy objectives and service standards and give staff a clear view of the desired outcome, and management clear accountability for providing effective and secure administration.
2.33 Rhondda Cynon Taf was not at Standard in this element. However, it had set targets for all relevant Welsh Assembly Government Performance Indicators. The targets it included in its performance plan were limited to the Welsh Assembly Government Performance Indicators. These targets were Specific, Measurable, Achievable, Realistic and Time-Based. These were published to customers in the council’s Improvement Plan and in the council newspaper, Rapidly Changing Times, which was distributed to all households. These targets however, are only for 2002/03. They do not show future plans for improvement.
2.34 Rhondda Cynon Taf had targets, which were specific, measurable, achievable, realistic and time-based, in relation to response times to enquiries made in person, by telephone or in writing. These targets are published to customers in a Customer Commitment that, we were told, was sent out with all notifications and Council Tax bills but not with HB and CTB claim forms. None of its other local targets were found to be specific or measurable.
2.35 To achieve Standard in this element Rhondda Cynon Taf needs to:
- develop local targets that are specific and measurable
- ensure that its targets cover the whole range of its relevant policy objectives
- reflect targets in job descriptions and work programmes.
2.36 Appendix 4 of the business plan contains performance targets for benefit administration. However, these targets are not specific, measurable, achievable, realistic and time-based, nor do they cover overpayments or counter-fraud activity. A complete set of targets would produce a useful basis for performance monitoring and development.
2.37 Staff told us that they viewed performance targets as a positive means to improve performance, but Rhondda Cynon Taf did not set any individual performance targets.
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Performance monitoring
2.38 Performance monitoring provides assurance to Members and senior officers that HB and CTB administration is effective and secure. It is important that Members and senior officers receive reports on performance against the vision, objectives and plans to make the accountability process transparent. Performance monitoring can also encourage the development of a culture of continuous improvement.
2.39 Rhondda Cynon Taf was not at Standard for the performance monitoring element because of delays in providing the Department with management information and subsidy returns and weaknesses in reporting against policy objectives and action plans. This was mainly due to the deficiencies of the Benefits IT system.
2.40 Rhondda Cynon Taf was able to collect sufficient accurate management information to monitor performance targets. This included the Welsh Assembly Government Performance Indicators, other than those involving overpayments, where the information was held on more than one system and there was no automatic interface between them.
2.41 Information on overpayments is an important element of the Department’s management information needs and for the completion of subsidy returns. Rhondda Cynon Taf has had to ask the Department for additional time to complete both, and the Community Housing Division told us that a subsidy return to the Office of the Deputy Prime Minister had been qualified in relation to backdated awards.
2.42 Rhondda Cynon Taf did not use the management information on performance to provide reports to Members, other than the Annual report against Welsh Assembly Government Performance Indicators. We were told that reporting to Members had fallen away during 2002/03, partly due to the workload involved in the implementation of its new Constitution. Senior officers told us that the Scrutiny Panel had not been effective in fulfilling its scrutiny role and so Standing Task Teams had been set up to look at performance information it would require in the future.
2.43 We saw minutes of staff meetings which showed that information on performance had been provided to staff.
2.44 The document image processing system should help Rhondda Cynon Taf to more accurately define work in progress and target resources accordingly in future. However, when we arrived on site, we found that the exact extent and nature of the amount of work in progress was unclear. During the on-site phase of our inspection benefits staff developed a greater understanding of the document image processing system, and were able to provide us with an analysis of outstanding work by claim type. However, more work is required to improve the reporting capability and thereby inform performance monitoring from the document image processing system.
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Organisational structure
2.45 It is important that human and other resources are structured to provide a secure and effective Benefits service. Organisational design will obviously be influenced by council-wide policy on issues such as:
- service centralisation or decentralisation
- outsourcing
- the size and geography of the local authority
- the siting of benefits and counter-fraud work within Finance or Housing, or a combination within these or other departments.
2.46 It is important that the organisational structure adopted should not have an adverse impact on the administration of benefits. The Institute of Revenues, Rating and Valuation recommends therefore that the Benefits Manager should occupy a senior position within the authority with a direct reporting line to the Section 151 Officer.
2.47 Rhondda Cynon Taf was below Standard for the organisational structure element largely because the structures are in a state of flux and a settled organisation is not yet in place.
2.48 Until September 2001, benefit administration at Rhondda Cynon Taf was split between the Community Housing Division and the Revenues and Benefits unit. It is now all administered within the Revenues and Benefits unit. In addition the Benefit Fraud team moved from internal audit to the Revenues and Benefits unit in November 2001. We view the unification of benefit administration in one area positively.
2.49 The Revenues and Benefits unit structure had only been in place for a few months. The unit now operates with a front office, dealing with the public, and a back office processing claims. The structure was still evolving but benefits staff told us that they knew who to go to with any particular issue, an indication that the changes were being communicated and understood.
2.50 Figure 2.2 shows the organisation chart we were provided with prior to our on-site phase of the inspection. Figure 2.3 shows the corporate organisation chart and illustrates where the Revenues Manager sits within the local authority.
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Source: Rhondda Cynon Taf
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Source: Rhondda Cynon Taf
2.51 We found during our on-site work, that individual roles and responsibilities were still being re-allocated. For example, a Benefit Review team was created and the reporting line for the Customer Service Manager was changed, to report to the Local Taxation Manager rather than the Revenues Manager. We were also told that the Senior Benefits Assistants had been made aware that they should deputise for Benefits Officers in their absence but this was not specified in their job descriptions.
2.52 We found that the senior managers did not have time to manage as effectively as they would have liked due to regular involvement in day-to-day operational issues. Senior managers did not have time to fully analyse the available management information to plan development of the service. This limits the scope of senior managers to take a regular strategic view of the service.
2.53 The Benefits service had become reliant on overtime working. Ultimately this can lead to low morale and increased levels of administrative errors, although there was no evidence of this while we were on-site. The Best Value review report indicates that not enough staff transferred from the Community Housing Division to deal with the caseload that was transferred. Rhondda Cynon Taf told us that it plans to review resource allocation once the document image processing system has had time to bed in.
2.54 There was regular liaison between the Benefits service and the other parts of the organisation involved directly or indirectly with HB and CTB administration. For example there were regular meetings with Council Tax and Community Housing Division staff. The minutes from the meetings are sent to Benefits staff electronically.
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Procedural guidance
2.55 HB and CTB are important components of the national benefits system and it is important that staff and managers responsible for their administration are supported and guided by good procedures.
2.56 Rhondda Cynon Taf was not at Standard for the procedural guidance element because the only documented procedures it had were in relation to benefit overpayments. We found that Rhondda Cynon Taf relied on custom and practice on a day-to-day operational basis, supported by 70 training aids. However it plans to develop documented procedures by using a template from another council. If procedural guidance was in place, Rhondda Cynon Taf would be closer to, or at, Standard for:
- document verification
- counter-fraud
- internal security.
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Management assurance
2.57 Members and senior managers who are accountable for the delivery of effective and secure HB and CTB administration, need assurance that the Benefits service and counter-fraud efforts are working as planned.
2.58 We found that Rhondda Cynon Taf operated an extensive regime of management checks for claims processing and counter-fraud operations. The first checking process was at the 10% level recommended by the Performance Standards. A second process, primarily concerned with providing assurance on the quality of correspondence produced by the benefits IT system, has developed into an additional 100% quality check. Our findings in relation to this issue are provided under Processing of claims.
2.59 However, we found that Rhondda Cynon Taf was not at Standard in this element. To achieve Standard Rhondda Cynon Taf needs to:
- have clear criteria for the types, numbers and proportions of cases to examine
- have clear criteria for how to select samples
- use the results to feedback into staff training and development plans.
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Management information
2.60 Management information provides a sound base for managers to evaluate the effectiveness and security of the benefit system and is a useful tool for management to make intelligent decisions on the day-to-day running of their sections and to keep Members informed of performance. It should not be used simply to generate a local authority’s current set of performance indicators.
2.61 We found that Rhondda Cynon Taf used management information to adjust work priorities and resource allocation but were unable to find any evidence that it uses it to predict trends, identify patterns and risks, establish low areas of take-up or identify procedural weaknesses. Therefore performance was not at Standard in this element.
2.62 Senior managers in Benefits have assessed their management information needs. However, we found that following recent changes in the management structure of Rhondda Cynon Taf, senior officers and Members had not fully determined their management information needs in relation to the Benefits service. We were told that this would be addressed as part of the Corporate Performance Management Framework that is being introduced and the work of the Corporate Services Performance Task Team.
2.63 We found that Rhondda Cynon Taf was, however, keen to develop the quality of management information and the use made of it. We saw significant progress made in producing management information from the document image processing system while we were on site for example.
2.64 Rhondda Cynon Taf told us that it experienced problems extracting the information it required from the benefits IT system. These were mainly due to the age of the technology and its incompatibility with available spreadsheet software. Rhondda Cynon Taf told us that it expects the combination of the document image processing system and a new benefits IT system to become powerful sources of management information, which it will use to drive performance improvement.
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Training and development
2.65 Effective and secure delivery of HB and CTB depends on staff performance. The administration of these benefits is complex and staff retention and recruitment are major issues for managers. Benefit administration is an important provision which directly affects the lives of millions of people. It deserves status, and local authorities must offer effective training, career and personal development activities.
2.66 Investment in the training and development of staff, plays a key role in:
- attracting new recruits
- retaining staff
- offering a career path for potential managers
- developing the management skills of more senior staff.
2.67 Investment in performance management can:
- bring greater consistency and fairness to the management of staff
- highlight where individuals need to develop or improve performance
- ensure that career advancement is based on demonstrable delivery of results and competence to take on greater responsibility.
2.68 Rhondda Cynon Taf was close to Standard in this element. However, there was no performance appraisal system in place, benefits staff did not have job descriptions that included personal job and work objectives and they received no formal feedback on their performance.
2.69 On the positive side, Rhondda Cynon Taf appointed a Senior Benefits Officer who has had overall responsibility for training since August 2002. Staff viewed this as a very positive move, and the authority has developed a new training programme in partnership with the Institute of Revenues, Rating and Valuation Solutions Limited. This programme includes induction and update training for new and existing Benefits staff and management training.
2.70 The Corporate Services Department, which includes the Benefits service, has had Investors in People accreditation since 2000. However, we found that staff had not had personal development reviews for about 18 months because of pressure of work from the implementation of the document image processing system and the Best Value review of the service. Rhondda Cynon Taf acknowledges that momentum has not been maintained in relation to Investors in People and told us that it plans to progress this issue through the implementation of its Corporate Performance Management Framework.
2.71 Rhondda Cynon Taf produces training aids about HB and CTB regulations and circulars within a few days of the circulars being received. Although these aids cover a wide range of topics, they did not cover all regulations and local policies, nor the input of data to the benefits IT system. Technical support was also available from more experienced staff and everyone has access to the Institute of Revenues, Rating and Valuation legislation database via their work stations.
2.72 Rhondda Cynon Taf regularly uses external trainers to deliver training sessions to staff on specific issues. When training is undertaken it is planned for times which will have minimum disruption on service delivery.
2.73 All staff have job descriptions but these are not tailored to the post they hold nor do they include key work objectives. For example, some staff only dealt with renewal claims and the 2 Senior Benefits Officers have the same job descriptions but very different responsibilities, one dealing with training. We were told that job descriptions would be reviewed following the implementation of the new benefits IT system.
2.74 Rhondda Cynon Taf did not have a staff development system. Feedback to staff about performance was informal and unstructured, but this had been recognised as a weakness and Rhondda Cynon Taf was in the process of implementing a Corporate Performance Management Framework. At the time of our on-site phase, this framework was being cascaded throughout the council, with 4 competency based appraisal pilots taking place.
2.75 The lack of a performance appraisal system means Rhondda Cynon Taf cannot currently reach the performance levels set out in many of the functional areas making up the Standards as many areas, including Customer services and Counter-fraud, require formal feedback to staff to be given.
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Information technology
2.76 Every local authority should make the most of available IT to support an effective and secure HB and CTB administration, and the technology deployed should assist the local authority in making progress against the E-government agenda.
2.77 Automation of processes should enable greater efficiency and provide reliable and timely management information to monitor performance and inform management decisions.
2.78 Rhondda Cynon Taf was below Standard in this element because there were insufficient interfaces between its systems, too much user intervention and weaknesses in password control and system fault logging.
2.79 Rhondda Cynon Taf uses a benefits IT system to process HB and CTB claims and a fraud case management system to support the investigation and management of counter-fraud activity. These 2 systems do not interface with each other to the extent Rhondda Cynon Taf would like.
2.80 The benefits IT system has automatic interfaces with the following systems:
- housing rents
- Council Tax
- document image processing
- creditors.
2.81 The benefits IT system did not have an overpayment recovery module, and it was not linked to the corporate debt recovery system or the general accounting ledger. This leads to high reliance on clerical work with potential for delays and errors.
2.82 We found issues around the reconciliation of Rent Rebate payments that are reported under Internal security.
2.83 The benefits IT system provides the raw data necessary for the subsidy returns and management information returns to the Department. However, the data, particularly that in relation to overpayments, has to be manipulated to meet the Department’s requirements and this means Rhondda Cynon Taf was sometimes late in submitting the returns.
2.84 The benefits IT and fraud case management systems, both provide audit trails and have password controlled access. We found issues around control of passwords at Rhondda Cynon Taf, which we report in the section on Internal security.
2.85 Rhondda Cynon Taf relies on their IT supplier logging and dealing with faults that it reports. In practice this means that Rhondda Cynon Taf cannot ensure that all faults reported are dealt with.
2.86 Rhondda Cynon Taf has an IT test system which is a full copy of the live database. However, Rhondda Cynon Taf told us it did not undertake fully documented system testing as an integral part of remedial or other software releases. We were told that minor releases were not always tested on the test system before installation on the live system. Installation onto the live system was often delayed until other councils had completed their testing and sometimes until after they had used the release in the live environment, so that any problems had been identified.
2.87 Rhondda Cynon Taf has contingency and recovery plans in relation to the mainframe and document image processing systems. We were told that these plans are tested annually.
2.88 Rhondda Cynon Taf had recognised a number of the problems identified in this report. At the time of the on-site phase of our inspection, it was about to start a tender evaluation exercise in relation to a new benefits IT system, which was planned to become operational in the summer of 2003.
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Internal audit
2.89 Internal audit provides assurance to management and Members about the effectiveness and security of HB and CTB administration.
2.90 We found internal audit performance was very close to Standard. It had a programme of work which:
- was agreed by Members
- extends over a 3-year period
- examines failures in effectiveness and risks to security
- assures compliance with benefit regulations.
2.91 Internal audit reports were discussed with the service manager and the findings were agreed as to fairness and accuracy. Senior managers consider all internal audit reports. Members can track the progress of internal audit work against a programme and receive a summary of each report.
2.92 Internal audit co-ordinates work with Audit Commission in Wales (District Audit) to avoid duplication of effort.
2.93 Officers benchmark the internal audit service against other Welsh authorities as part of a Chartered Institute of Public Finance and Accountancy benchmarking club. The club benchmarks audit activity in 13 areas, including:
- payroll
- creditors
- debtors
- treasury management
- benefits.
2.94 Rhondda Cynon Taf was not at Standard because:
- the Performance Standards have not been built into the work programme
- the level of internal audit resource allocation was not calculated based on risk and financial expenditure across the council.
2.95 We consider that the internal audit section was performing well despite being one third-down against its stated establishment and high turnover in the Chief internal audit or post.
2.96 Senior management were aware of these resource problems and have bought in resources as necessary. For example, private sector auditors were used to carry out a risk assessment and create the first 3-year internal audit plan, ending in March 2003. A new plan was being worked on which, we were told, would take into consideration the findings of this report.
2.97 Rhondda Cynon Taf should consider whether internal audit resources are sufficient to assure Members and senior managers that HB and CTB systems are secure. Rhondda Cynon Taf expenditure on benefits is estimated to amount to 18.8% of gross revenue expenditure in 2002/03. Using calculations derived from the Performance Standards, this proportion would suggest that some 659 days be allocated to benefits work. The current number of days allocated to the Benefits service for 2002/03 is 30.
2.98 A Chartered Institute of Public Finance and Accountancy benchmarking exercise for 2002 showed that the average for all 173 authorities within the benchmarking club was 53 days whereas Rhondda Cynon Taf allocates 30 days. Within the sub-club of 13 authorities that Rhondda Cynon Taf is directly compared with, the average is 30 days.
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External audit
2.99 External audit has statutory duties to report on the arrangements that the local authority has put in place to secure economy, efficiency and effectiveness in its use of resources. They also give independent assurance on matters relating to the accounts and report on the arrangements to secure propriety. Local authorities must act on this independent advice and assurance, while having their own systems of assurance. They cannot rely on external audit identifying faults.
2.100 The external audit service for Rhondda Cynon Taf is provided by the Audit Commission in Wales (District Audit) and:
- gives good support to officers in developing action plans
- provides regular reporting to Members and senior officers
- provides good co-ordination of activities with the council’s internal audit service.
2.101 However, Rhondda Cynon Taf fell short of achieving the Standard because of weaknesses in monitoring the progress of action plans. For example by July 2001, 34 out of 51 recommendations arising from District Audit’s Countering Housing Benefit Fraud Value For Money report, due for implementation by early 2000, had not been fully implemented. Rhondda Cynon Taf told us of the establishment of Standing Task Teams of Members and of its plan that these groups will be involved in monitoring of progress in the future.
2.102 Rhondda Cynon Taf has not, prior to this BFI inspection, had any other external reviews of its HB and CTB administration so we have not made any findings in relation to its response to such reviews.
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Cost of claims
2.103 There is no definitive costing structure for benefit administration although local authorities should be guided by the provisions contained within the Department’s circular S1/2000.
2.104 Rhondda Cynon Taf exceeded the requirements of the Standards in this element. Different cost per claim ratios were used in the calculation and we were told that ‘cost of claim’ is used as a local Performance Indicator. The cost per claim itself for 2001/02 was £37.50, which compares favourably with other Welsh Authorities. The average ‘cost of claim’ for Welsh Authorities was £43.47.
Internal working arrangements
2.105 Organisations need to manage their internal partnerships and relationships to support short and longer term policy objectives. Management includes ensuring that common goals are set for an effective and secure HB and CTB administration.
2.106 Rhondda Cynon Taf met in full the requirements of the Standard in this element.
2.107 They have good liaison between Benefits, and the Council Tax team and Community Housing Division, with regular meetings, to agree procedural changes, taking place. Minutes of meetings are available for Benefits staff to view on their PCs.
2.108 The section managers of the Benefits service told us that they plan to develop the working arrangements with Community Housing Division by having some Benefits staff visit the District Housing Offices to provide advice to customers.
2.109 To reach the performance targets set for above Standard performance, Rhondda Cynon Taf would need to introduce formal written agreements with others in the council involved in benefit administration.
External working arrangements
2.110 Local authorities function within their own network of relationships with customers, stakeholders and other bodies in their communities. Effective partnerships with these organisations will provide mutual benefits through savings in administrative costs and benefit expenditure and reduce the amount of fraud and error. Some stakeholders such as the Rent Service and Jobcentre Plus play a key part in handling HB and CTB claims effectively and securely.
2.111 We found that Rhondda Cynon Taf was not at Standard in this element because of weaknesses in monitoring service level agreements.
2.112 Rhondda Cynon Taf has, or had, service level agreements with organisations connected with benefit delivery including:
- the Rent Service
- up until April 2002, 4 different Benefits Agency offices (Pontypridd, Tonypandy, Aberdare, Porth)
- Counter Fraud Investigation Service covering 2001/02 and was, at the time we were on-site, in the process of signing a local Fraud Partnership Agreement
- Housing Associations
- Women’s Aid.
2.113 The agreements follow national models where such models are available. Performance against the service level agreements was not formally monitored. Regular monitoring with action taken to correct deficiencies will help to improve effectiveness and security. For example, monitoring the time taken to provide information regarding Income Support (IS) or income-based Jobseeker’s Allowance (JSA(IB)).
2.114 We did find good liaison between Rhondda Cynon Taf and the other organisations with regular meetings taking place. In relation to the Benefits Agency, which in April 2002 became part of the newly created Jobcentre Plus, we were told that the service level agreement had been agreed following discussions between the two parties.
2.115 During September 2002, meetings took place with Registered Social Landlords and private landlords. These are discussed further under Working with landlords.
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