Westminster City Council has approved the extension of its contracts with Capita for the provision of Revenue and Benefit services to 2015.

The contract extensions were agreed by Cabinet on Monday 10th July on the grounds that the extensions represent excellent value for money. The Council’s partnership with Capita has produced major improvements in service performance in recent years.

The Council’s Benefit service is now rated as “good” under central government’s CPA assessment and is well placed to achieve the highest 4 star rating of “excellent” under future assessments - which Capita is committed to achieve. In addition, Council Tax and NNDR collection rates continue to improve year on year.

The introduction of a major change programme by Capita, including new information technology and the relocation of their back office delivery centres, has enabled the City Council to negotiate a £1m annual reduction in contract cost.

This saving will take effect some 2½ years earlier than the scheduled re-let and will make a significant contribution to the Council’s commitment to limit future Council Tax increases to no more than 2% per annum.

Further savings may also be generated during the extended contract term through further re-engineering of the services. Speaking after the contract extension, Nick Bell, Director of Finance said, “This contract extension represents excellent value for money for Westminster Council in terms of service delivery and cost.”

“The extension award, some 2½ years before any possible contract price reduction through re-tendering, will provide £9.7m in savings to the Council over the life of the new contract, whilst the annual saving of £1m is equivalent to a reduction of 2.2% (or £8.12) on the current Band D Council Tax”.

Councillor Colin Barrow, Cabinet Member for Finance, said: “Our Housing Benefit service has experienced difficulties in the past, but we have worked hard with Capita to improve our performance”.

“This agreement represents a good deal for the people of Westminster. It demonstrates the Council’s aim to minimise costs, whilst maintaining excellent service delivery, which in turn will deliver a value for money Council Tax for all of the borough’s Council Taxpayers”.