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Revenues and Benefits Discussion Group – August 2025 Highlights

Posted on 18/08/2025 by Malcolm

There is no session this week as the summer break continues on the meantime here is a summary of what has been happening over the last two weeks. The group will return on Monday 8 September.

Welfare and Sickness Trends

Nearly 2.8 million people are now out of work due to long-term sickness, pushing the share of Universal Credit claimants with no work requirements to 46%. With 8 million claimants overall, DWP faces rising costs, strained work coaches, and growing pressure for reform.

Housing and Right to Buy

Since 1980, 1.9 million council homes have been sold, eroding local authority assets by an estimated £326 billion. Over 40% of former council homes are now in the private rental sector, increasing Housing Benefit spend and reducing councils’ ability to meet local housing need.

Productivity and Workforce

Public sector productivity is still 4–5% below 2019, costing the economy around £80 billion a year. Healthcare is the biggest drag, nearly 10% down. In Scotland, absence rates are at record highs and nearly a third of the workforce is nearing retirement age.

Council Tax Pressures

Cases in Wirral, Slough and Northumberland highlight recurring challenges: mistaken arrears demands, low hardship fund take-up, and record arrears of £26.4m. Councils must balance firm collection with fair treatment.

Finance, Reform and Risk

Funding reforms from 2026–27 will create clear winners and losers, with inner London set to lose up to 12% while outer London and Yorkshire may gain. Reform UK’s early claims of council savings have drawn scrutiny, while central government has stepped in to support Woking’s £2bn debt.

Technology and risk were also front of mind

AI tools showing gender bias, data breaches costing an average of £2.23m, and new DWP systems to speed up case handling.

Conclusion

From welfare reform and council tax pressures to data risks and funding changes, the sector faces intense operational and financial strain.

The Independent Revenues & Benefits Discussion Group continues to provide a vital forum for expert analysis, shared learning, and open debate at a time of significant policy flux.

For more information or to join future sessions, contact Malcolm Gardner at Visionary Network. info@visionarynetwork.co.uk

Files to download

IR&BDG 20250818Download
ey-mind-the-productivity-gap-reportDownload
IFS_report_Fair-Funding-Review2_0_0Download
Letter-to-minister-on-Devolution-Bill-FINALDownload
right to buyDownload
s12911-025-03118-0Download
the-golden-triangle-governance-roles-and-responsibilitiesDownload
data-tables-benefit-sanction-statistics-to-May-2025Download

Please note that the handout contains additional slides covering other items of interest in the news and job adverts, which are provided in partnership with Business Smart Solutions (https://www.businesssmartsolutions.co.uk/).

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