Hull picks Civica for outsourcing partnership
Company unveiled as preferred bidder for revenues and benefits deal designed to curb council costs and maintain existing staff numbers
Hull City Council has selected Civica as the preferred bidder for a seven year contract to oversee its revenues and benefits services.
The agreement, which is valued at £40m and expected to drive £5m in savings, will see the council outsourcing management of housing benefit, council tax, business rates and debt collection for the first time.
In a statement issued today, the council said the deal, expected to begin on November 1, would safeguard the jobs of 214 existing employees working on revenues, benefits and other related services, by transferring them under the partnership.
As part of its agreement, Civica will also potentially provide services to support other local authorities through a transactional processing centre to be based in Hull. Provisionally called the 'Kingston centre', the site is expected to be based in Hull's Treasury Building.
Council deputy leader councillor Daren Hale said the partnership was intended to save the authority money while protecting resident services seen as being important to the city. Hale said the deal would also avoid the need for redundancies.
"Contrary to previous inaccurate reports, there will be no redundancies either before or during this seven year partnership. The 214 staff are safeguarded throughout our deal with Civica," he said.
"If this partnership agreement had not been given the go ahead we would have seen up to 30 FTE staff redundancies as part of a need to reduce the service budget by £700k per annum, so we are delighted that we have been able to protect all the affected staff whilst making significant budget savings."
"Our revenues and benefits customers will not be affected by the changes as we transfer these services."
Civica said it has built a specialist revenues and benefits service model that is able to provide scalability and flexibility to address challenges facing local authorities. The company claimed similar services have already been provided to other UK local authorities.