The Finance Overview and Scrutiny Committee met to discuss universal credit migration, the council tax reduction scheme, the council's financial results, the change programme, equalities, and the work programme. The committee agreed to note the reports and recommendations.

Universal Credit Migration and Council Tax Reduction Scheme

The committee discussed the Universal Credit Migration and Council Tax Reduction Scheme, and noted that 98% of households due to migrate have now done so.

Alex Wilson, Director of Revenue Services, explained that a new status funded Council Tax Reduction (CTR) scheme was introduced in April 2024 to mitigate some of the impact of UC migration by creating a simpler scheme less volatile to changes in income. She noted that the scheme has cost more than originally projected, mostly within the working age vulnerable cohort. She also noted that in hindsight the council should not have hard-coded financial values into the income thresholds.

Jeremy Sandell, the Chief Executive Officer of Citizens Advice Wandsworth, gave an independent perspective on the support that the council has offered for the universal credit migration and the introduction of the council tax reduction scheme. He noted that the CTR application process is very straightforward and efficient, and that the scheme is generous compared to other local authorities. He also asked Wandsworth Borough Council to respond to the government consultation on council tax enforcement.

Councillor Cornett asked what tangible approaches the CAB has seen in terms of ways that local authorities can reduce the impact on council tax collection enforcement. Mr. Sandell responded that the worst thing for people is obviously having a bailiff turn up on the door, and that anything that can be done to prevent that requires resource. He suggested other methods, including things like an attachment to benefits or an attachment to earnings.

Councillor Annamarie Critchard asked if the CTR scheme is easy to understand. Mr. Sandell responded that it is a genuinely easy to follow and understand scheme.

Councillor Sara Apps asked what one change Mr. Sandell would make to the council's service to make it an improvement. Mr. Sandell responded that the consultation outlines some pretty good and reasonable approaches, and that largely to be supportive of the direction of travel that's being proposed is right. He also noted that vulnerability assessments are really important.

Councillor Clare Fraser asked if Mr. Sandell was aware of anything that the council could learn from or implement from other local authority areas. Mr. Sandell responded that the council is currently looking at how advice services are commissioned and the services that Citizens Advice provide.

Councillor Critchard suggested that the committee recommend that the cabinet allow the Director of Resources to be able to make small changes to the scheme, and Councillor Aled Richards-Jones agreed to support an amendment of that kind on the understanding that it wouldn't be an unfettered delegation of powers, and that it would be defined in terms of CPI¹ or some sort of parameter that kept it at an inflationary level.

The Council's Financial Results 2024/25

The committee reviewed the council's financial results for 2024/25.

Miss Berry introduced the report, noting that the council had a small overspend of 0.6% on the general fund revenue budget in year, but that this was offset by additional treasury income and an underspend on inflation. She also noted that the council had managed to deliver £79 million worth of investment in the borough over the past year, which was 99% of the revised budget for that year. She explained that the housing revenue account reserve balance has reduced from £192m to £153m at the end of 2024/25 as a result of planned capital investment, pressure on revenue repairs and maintenance budgets, and a bad debt provision made against interest income previously anticipated to be received. She also noted that the schools budget had an in-year overspend of just over £7 million, and that this had added to a previous brought forward deficit, so that there was now a £20 million pound deficit on the schools budget.

Councillor Peter Graham asked about the fair funding review and national distribution of local authority funding, and by how much the council's funding was likely to fall. Miss Berry responded that the government hasn't released its figures, and that it's impossible to say what the impact will be on Wandsworth in that three year period.

Councillor Tony Belton requested that the council provide figures on how many people, rather than just households, are in receipt of CTR.

Councillor Fraser asked if the council was planning to automate any processes and if it was anticipating savings from any changes that it might do in that area at all. Miss Wilson responded that the council has a project that's ongoing at the moment to do a much wider scale process automation, and that it hopes that will all be complete within the next six months.

Councillor Graham commented that the system and the reduction scheme that was inherited did set it at a very low level, and that it was essentially based on the principle that everyone should contribute something, but that it should be at a level low enough that it's not a burden.

Councillor Apps asked if there were plans to put the financial inclusion officer post in place on an ongoing basis. Miss Wilson responded that the post has been funded through the cost of living reserve, and that's been extended for a further year.

Councillor Hedges asked if the council was going to be doing a refresh of the benchmarking data, and if the scheme was financially sustainable over the medium term. Miss Wilson responded that benchmarking is something the council does every year, and that it looks at what the direction of travel is. She also noted that with the fair funding review, it's reasonable to expect that as a council, the council might need to review the CTR scheme to assess continued affordability.

Councillor Critchard suggested that the committee recommend that the cabinet allow the flexibility for the director to be able to make small changes to the scheme, and Councillor Graham agreed to support an amendment of that kind on the understanding that it wouldn't be an unfettered delegation of powers, and that it would be defined in terms of CPI or some sort of parameter that kept it at an inflationary level.

Change Programme Update

The committee discussed the Change Programme Update, and noted the benefits set out in the report and the additional funding allocations.

Ms Olsen gave an update on the change programme, noting that it is currently funding 35 projects and 28 officers across the organisation. She explained that the expectation is that those roles become part of the council's budgetary conversations, and that if directorates want to keep the roles, they need to find it within existing base budgets. She also noted that a huge amount of the focus was about building capability, and that it is a major benefit of the change programme.

Councillor Corner asked what the approximate date of delivery was for the digital blueprint, leisure strategy, and assets projects, and if there was a framework to prevent sunk costs in the delivery of those projects. Ms Olsen responded that the first five business cases hit her this week, and that she expects to see the next nine of this phase of work over the next couple of weeks.

Councillor Jessica Lee said that it was great to finally see the positives coming through, and asked if the council was able to measure at all the impact for residents, or even on a more sort of human level or qualitative level. Ms Olsen responded that some of the programs that the council is already delivering make it easier to see, and that the KPIs that the council is starting to see is some of it's about the reduction in the amount of telephony the council is receiving in some spaces.

Councillor Hedges asked if Ms Olsen thought the council was going to see a lot more efficiencies gained and potentially some trimming down of the staffing with the use of copilot. Ms Olsen responded that in 10 years time she sees the staff makeup looking really different, and that the council will have a smaller number of people who are answering the phone, but that they will be need to be a really highly skilled, very empathetic, high emotional intelligence group of staff.

Councillor Belton asked if Richmond was totally involved in this, and if the same paper was effectively put to Richmond, and what they think about it all. Ms Olsen responded that about 50-60% of it is the same, but that once you start to look at areas like restructures, some of the commissioning and procurement, some of the asset work, actually it's quite different.

Councillor Fraser asked if Ms Olsen had any feedback on what the changes have meant for members of staff, and any feedback she might have had during the process. Ms Olsen responded that it depends a huge amount on where a workforce is at at that point in time, and that when teams are going through restructure processes and the council is looking at delayering through the DMA, they're in a really different change process at that point in time.

Councillor Apps asked what the council had learnt from this process, and what it had learnt about the council's ability to measure and deliver change. Ms Olsen responded that to date the council hasn't been brave enough to try things quickly enough, and that the council needs to harness the fabulous staff who are really excited about it and make sure it moves forward with it.

Councillor Critchard asked about the customer access strategy, and if members could have some input into it. Ms Olsen responded that the council would expect to start to see that first phase of the customer access strategy come together towards the back end of this year, and that she would very much welcome the committee's input into it.

Annual Equalities Report

The committee discussed the Annual Equalities Report, and Councillor Graham questioned the funding of the decolonised choir, and asked how and why the council ended up funding that evening.

Councillor Corner asked what metrics the council can put in place to track the improvement of inequalities over time in the borough. Mr. Evans responded that with anything the council funds, it usually requires impact and outcome and output data on there, and that he can commit to when the council brings this report to a future committee, that it does expand out the information there to give the committee a sense of its reach and impact.

Councillor Hedges asked if the previous champions had been involved in this work, and how much, and also what the deputy cabinet member role is going to be included in the work going forward. Mr. Fisher responded that the equalities champion was Councillor Sanna Jaffrey, and that she did a brilliant job. He also noted that Councillor Sam Miller Vera Tharaj has always been working very hard with refugees and sanctuary seekers, and that she will continue to champion sanctuary seekers alongside additional duties.

Councillor Belton said that the most important inequality is money, and that he'd be really interested in the total impact of the money saved from the point of view of the people concerned.

Councillor Richards-Jones asked why the council won't publish the information. Councillor Ireland responded that the council published all the information it thinks is necessary for councillors and members of the public to be confident that the council's plans are affordable.

Councillor Apps asked what have the council learnt from this process, and what have we learnt about the council's ability to measure and deliver change.

Councillor Critchard asked if the cabinet could have another look at the proposed equality objectives for 2025 to 2030 and try and come up with one that actually encapsulates what the committee has talked about around financial inclusion.

Corporate Plan Actions and KPIs Performance Monitoring

The committee discussed the Corporate Plan Actions and KPIs Performance Monitoring.

Councillor Graham asked when the committee can expect to see the corporate plan actions for 2026-27 outlined. Councillor Ireland responded that they will be going to cabinet as part of a key decision, and then the committee will be getting updates on the mid-year point in the September or October cycle.

Councillor Graham asked whether Councillor Ireland expects to include as an action that residents will pay the same low council tax. Councillor Ireland responded that decisions about the council tax next year will be informed ones, which means the council will make them when it has all the information.

Finance Overview and Scrutiny Committee Work Programme

The committee discussed the Finance Overview and Scrutiny Committee Work Programme, and agreed to note the approach to its further development.