Outsourcing of housing benefit processing works better in councils where other services – such as council tax and computer departments – have also been outsourced, a report for the Department for Work and Pensions has found.

The report, by IRRV Solutions and Iris Consulting, was launched last Thursday at the Chartered Institute of Housing conference.

It said margins on housing benefit processing were small and giving outsourcing firms the opportunity to make money by giving them additional contracts gave them an incentive to perform well.

John Harvey of Iris, joint author of the report, said: "Local authorities have not always given sufficient information about backlogs, delays and volume or inaccurate information.

"The service can be made to work but there needs to be goodwill and material benefits on both sides."

The report's other author, IRRV senior manager Mike Gill, said outsourcers had pulled out of the market so fewer councils were outsourcing benefits functions.

He said: "Choice has been dramatically reduced. Because of this, fewer local authorities are coming to the market. It's a downward spiral."

Source

Housing Today