The lessons from the first year of AC inspection October/November 2009

2 Agenda CAA and the framework for inspection Learning issues Inspection for 2009/10 and 2010/11 –What we are planning to do Findings from our recession survey Developments in the Commission’s approach –Some thoughts around future changes and challenges

3 CAA Framework for inspection

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5 Learning issues – 18 months on 18 inspections completed 16 reports published 8 ‘Promising prospects for improvement’ –Risk based approach tended to be based on 2007/08 PIs as starting point

6 Learning issues (process) Most councils have adopted a positive approach Self assessment –Not a test –An opportunity to ‘tell the story’ –Not prescriptive – and even less likely to be in future –But KLOE can be a useful framework –Think about what is right for your area –A useful learning exercise if done in the right way Action plans –one month following inspection

7 ……and councils response to our inspections The inspection team gave council comprehensive and regular feedback throughout onsite phase –92% strongly agreed or tended to agree The recommendations made in report were accepted –83% all or most The inspection report was outcome focussed –75% strongly agreed or tended to agree (8% not) The inspection was useful to council –50% strongly agreed or tended to agree (25% disagreed) BUT Information request –25% too much Recommendations in report were useful and practical –50% tended to agree –33% tended to disagree

8 Learning issues (to improve the service to customers) Speed v quality Access and customer care –Notifications –Telephone response, abandoned calls –On-line calculators Customer engagement, satisfaction and take-up –Very limited ‘feel’ of customer satisfaction –Varied approach to take-up (not measured and managed)

9 Older people and benefits – what are the issues?

10 Learning issues (to improve the service to customers) Overpayment recovery –Prevention and education Equality and Diversity –Understanding communities and making service ‘fit’ Value for money (VFM) –Performance management –And re-thinking process Fraud –Concerns about increases in recession, and some councils shifting resources

Audit Commission Tomorrow's people Impact of recession Jobseekers allowance up 91% Redundancy up 94% fuel debts up 39% mortgage and secured loan arrears up 42% rent arrears to private landlords up 25% HB up 20% (HB claiming enquiries doubled) 15% increase in all problems dealt with by bureaux in Q2 2009/10 compared to same quarter in 2008/9:

Audit Commission Tomorrow's people Main housing benefit enquiries 2008/9 Eligibility/entitlement/calculations 106,555 Claiming process 10,794 Form filling/checking 6,420 Appeals 8,233 Overpayment recovery (HB &CTB) 18,358 Backdating 7,989 Discretionary housing payments 4,357 Non dependant deductions 3,122 LHA rent restrictions 3,050 LHA payment direct 2,589

Audit Commission Tomorrow's people Looking behind the figures: bureaux bugbears Typical HB claim is complex: client has literacy problems, mental health problems, difficulty budgeting, multiple changes in circs, threatened with eviction. Are systems built with this profile in mind? communications standard letters adviser telephone access with other agencies (DWP/housing) processing delays: new claims changes in circs/suspended claims gaps in claims/backdating restrictions overpayment recovery LHA direct payment - not pro-active in identifying vulnerable claimants

Audit Commission Tomorrow's people Best practice from the CAB perspective Personalisation – shape the service round the customer, not the system: tailored letters, Identifying and tagging “vulnerable” claims home visits/face to face pro-active on seeking customer feedback Pro-active in maximising take up, minimising rent arrears following up incomplete claims rather than just closing down, fast track for urgent cases Triggers to identify payment-to-landlord cases from outset of claim Promoting DHP - information on all decision letters where 100% of rent not covered Recognising CABx as partners: Implicit consent Regular liaison arrangements - involving bureaux in policy reviews Joint work on information provision and take up

15 And what have we learned? Integrating new staff –Fresh pair of eyes valuable –8 ‘inspectors’ and 3 transferring from BFI –3 Policy Team Feedback through our stakeholder group –How it felt for them…… –First meeting took place in December 2007 and met each 6 months since then (minutes available on AC website); –Group ‘rolling’ membership

16 The recession survey - what we did ….. Surveyed all heads of benefit in June 2009 – 134 (41 %) responded Asked about the impact of the recession on local benefit services Asked about local responses

17 Between April 2008 and April 2009, caseloads increased in all types of council and all regions …but some services saw much greater change than others

18 Most services reported associated increases in people wanting debt counselling, money advice and applications for DHP…..

So what have councils done to respond? Testing Times: Benefits services and the recession

20 47% of councils increased funding for debt counselling or money advice services in 2009 Percentage of Councils who have put additional money into debt counselling or money advice services …rising to 67% of those who reported additional demand

21 70% of services are changing strategies or operational plans for 2009 to address increases in demand How benefit services have changed their working practices

Changes in targeting potential customers Testing Times: Benefits services and the recession

23 46% of benefit services now explicitly targeting newly unemployed people … …identifying and visiting employers who may release staff before redundancy....working together with others (internally and externally) including job centre staff to offer a range of support …district councils working together and with county councils to maximise publicity and simplify boundary issues

24 Most services were targeting families who should benefit from November, when child benefit stops being counted as ‘income’ “Promoting via schools and children's services” …how is your service promoting this change? “Using existing records like free school meal claimants” “Revisiting failed claims”

Heads of service had a number of concerns about the future…..but some are rising to the challenge Testing Times: Benefits services and the recession

26 Increasing concerns about fraud…. The number of referrals have increased to a point where the fraud team are becoming overwhelmed 28% of services were more concerned about fraud – but only 11% were increasing staff for this area, while 75% were reducing ….more details on fraud in a recent AC report

27 …. concerns about capacity to deal with increases in demand “We have put on hold some of the things we planned to do this year” “Finding it difficult to keep up with demand, staff working all hours available” “Resources are severely stretched” “We are reducing non statutory services”

28 …..but also a variety of approaches to increase capacity better use of telephones and technology more home working where this improved productivity revised working hours to maximise staffing levels at peak enquiry times redesigned workflows so that one member of staff could more often deal with a full claim in one session use of other council staff to support the service, for example reception and library staff more training and approaches that better use existing expertise

Testing Times: Benefits services and the recession Summary of our survey on the impact of the recession on benefit services Graphs for all survey answers – available by region and authority type Comparator tool – enter your caseload data to compare increases in demand Short report to follow

30 Update on inspection Challenging – planning work in the absence of up to date performance information –Data quality –Track record on PIs –LA error Obtaining information direct from councils –Where there are other signs of ‘risk’ –Responses showing some gaps in information –Early days, but some concerns about how performance is being measured and managed How are you finding out about relative performance?

31 Update on inspection Lots of activity in the second six months of 09/10 –22 further inspections ‘agreed’ –Total (for the year) up to 35 by March 2010 –Website will show those planned for the next quarter Similar level next year –Looking at issues in relation to subsidy and VFM –Reinspections –How we can stimulate improvement – a small number at higher performers? –Short notice inspections?

32 The future Minor changes to KLOE –More prominent on benefit take-up Continued focus on VFM –Good progress on LA error (halved between 06/07 – 08/09) Responding to issues from CAA – potential for cross-cutting, joined up work – how benefits is supporting wider outcomes – short notice inspections? More input from a ‘user’ perspective –Tenancy inspection advisors –Looking to pilot other ways: eg; through web and surveys

33 CONTACT Tim Savill Phone Website Audit Commission benefits information: