Press Release (18 June 2003)

Local Authority Experience in Outsourcing Housing and Council Tax Benefits

The findings of a research study, which looked at the experience and impact of outsourcing housing and council tax benefits, are published today.

The report reviews the history of outsourcing of housing and council tax benefits services to date, examines the reasons for the differing local authority experiences with ‘successful’ and ‘failed’ contracts and identifies factors associated with success and good practice. A separate guide sets out the good practice lessons for local authorities and contractors derived from this research.

The research found that few local authorities (less than 40 in GB) have experience of entering into arrangements with external contractors to provide all, or part, of their HB administration. There has been a mixed range of experience amongst those local authorities. In some areas it has worked well from the beginning; in others the process encountered initial difficulties which have now largely been resolved and in a number the process did not work with the result that the service has been brought back in-house.

The reasons for the differences in experience are attributable to a number of factors relating to the local authority’s reasons for outsourcing, previous levels of performance, the local industrial relations context, the extent to which ‘partnering’ approaches have been adopted and the range of services included in the outsourcing package.

Local authorities and private contractors have learnt from the early experiences of outsourcing which took place up to 10 years ago, and which were mainly under Compulsory Competitive Tendering (CCT) arrangements. The market is now a much more mature market and both LAs and contractors have developed their approach to outsourcing over that time. Some outsourced LAs are now achieving some of the best HB/CTB performance levels in the country.

NOTES TO EDITORS

1. Local Authority Experience in Outsourcing Housing and Council Tax Benefits is published on 18 June 2003 in the Department for Work & Pensions In-House Research Series. A copy of the report and summaries are available from the Research Support Team in the DWP Social Research Division (020 7962 8566). They can also be downloaded from the DWP website: www.dwp.gov.uk/asd
2. Outsourcing Housing and Council Tax Benefits: A Good Practice Guide is available from Corporate Document Services, 7 Eastgate, Leeds, LS2 7LY. Tel: 0113 399 4040, Fax: 0113 399 4205, Email: cds@corpdocs.co.uk. It can also be downloaded from the DWP website: www.dwp.gov.uk/housingbenefit.

3. The research was carried out for the Department by IRIS Consulting and IRRV Solutions. It involved:
o Interviews with key stakeholder organisations
o A review of existing research and data sources
o A national survey seeking additional information from local authorities with experience of HB outsourcing (as part of the DWP LA Omnibus Survey)
o In-depth case studies in eight local authority areas
Workshops with local authority and private sector representatives

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