Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 15
15
Accepted in Part
Paragraph: 85
Create an environment enabling easy, consistent data sharing to identify residents at risk of arrears.
Recommendation
The Government should not wait for local authorities to approach the Cabinet Office to learn how they can make better use of data sharing, but instead create an environment where this happens easily and consistently. We recommend that: • an application for universal credit automatically trigger an application for local council tax support; • the memorandum of understanding between HMRC and DWP be reviewed so that council teams can share relevant benefits data with their council tax teams; • the Digital Economy Act pilots be rolled out more widely; and • the Government consider further ways of enabling and encouraging greater data sharing between different groups for the purpose of identifying residents who are at risk of falling into council tax arrears; this may require the Information Commissioner’s Office either to clarify the relevant provisions of its data-sharing code of practice, or to raise awareness of it within local government, if there is evidence of an overly cautious approach being taken to data sharing within local authorities.
Government Response Summary
The government rejects the recommendation for universal credit applications to automatically trigger local council tax support applications due to potential bureaucracy. However, it outlines ongoing and planned actions to improve data sharing between DWP and councils, including increasing the scope of MOUs, delivering data improvements, and exploring legislative changes.
Paragraph Reference:
85
Government Response
Accepted in Part
HM Government
Accepted in Part
The Government does not agree with the Committee’s recommendation that an application for universal credit automatically triggers an application for local council tax support. Council tax support schemes for working age people are designed by individual billing authorities following consultation, and reflect local circumstances. People who are entitled to Universal Credit may not be entitled to council tax support (and vice-versa). Putting in place a process triggering automatic applications risks creating additional bureaucracy and cost for local authorities, as well as confusion for council tax payers. In view of this, the Government believes that the existing locally led approach to council tax support applications should be maintained. The Government has published information on support for housing and other living costs (including Universal Credit and local council tax support) which can be found under the page “Benefits and financial support if you’re on low income”. The Government broadly agrees with the Committee’s recommendation and welcomes the Committee’s views on improving information sharing between central and local governments. Recognising that there are constraints that prohibit greater data sharing within the current legislation, the Government is looking at options to remove these barriers. DWP already shares a huge amount of data with councils, with 28 data shares in place compared to eight data shares in 2015. These cover a wide range of data sets, for example allowing councils to access DWP’s Customer Information System, which can help councils identify residents in hardship. DWP are engaging with councils on improving data shares, by: • increasing the scope of data in its MOUs with councils (including data on local council tax support and the data councils receive daily on Universal Credit changes) • maximising what councils can do within current legislation; • delivering improvements to data shared, with a large batch of improved data due to be shared with councils before the end of March 2024, and the rest expected by summer 2024; • ensuring councils are aware of these improvements, with national communications to councils and with 40 councils involved in a working group that helped to design the changes; and • exploring the possibility of amending data sharing legislation to allow more data sharing with councils.