Revenues and benefits teams are now central to councils’ financial resilience. Lee Perkins, CEO at Civica, explores five ways to harness data and digital tools to meet reform challenges and improve citizen services.

Revenues and benefits teams are standing at a pivotal moment in local government history. With sweeping welfare reforms, growing citizen demands and structural pressures from devolution and local government reorganisation (LGR), the once-considered back-office function now has a critical role to play in shaping the financial resilience of councils. The question is no longer if revenues and benefits teams should evolve — it’s how they can lead the transformation.

The sector is grappling with a complex set of changes: the continued rollout of Universal Credit, shifting Housing Benefit thresholds, the creation of the Local Audit Office and the ongoing push for devolution and unitarisation. These reforms, while challenging, also present a once-in-a-generation opportunity to redefine the role of revenues and benefits as strategic, citizen-facing functions that deliver both operational efficiency and social value.

Moving Beyond Administrative Roles

Traditionally seen as administrative, revenues and benefits functions have long managed the collection of council tax and business rates and overseen welfare delivery. But their significance goes much deeper. These teams are central to financial sustainability in local government, managing the most critical revenue streams while also ensuring equitable welfare support for communities.

Given rising service demands — particularly in adult and social care — and the structural imbalance between funding and need, councils can no longer afford to treat these teams as purely transactional. Instead, they must be empowered to lead the charge in financial innovation, risk management and service integration.

Five Strategies to Lead Financial Resilience

To transition from reactive service providers to proactive leaders of financial resilience, revenues and benefits teams must adopt five key strategies:

1. Strengthen data and reporting capabilities

A robust foundation in data is essential for effective decision-making, regulatory compliance and service delivery. With increased scrutiny from the Local Audit Office and the need to process real-time data from systems like Universal Credit Data Share (UCDS), councils must invest in data governance.

Establishing clean, accurate and interoperable datasets will not only support compliance but will also enable integration across services. Enhanced reporting tools can provide insight into payment patterns, benefit uptake, fraud risks and more — helping councils make better, faster decisions that directly impact financial stability.

2. Prepare to harmonise cross-border services

As LGR and devolution reshape the local authority landscape, many councils are being asked to merge systems, policies and teams. Harmonising Council Tax Support schemes, Housing Benefit policies and IT infrastructure is a massive undertaking — but one that offers real opportunity for service standardisation and citizen experience improvement.

Revenues and benefits teams should be at the forefront of this effort, helping shape interoperable systems and aligning practices across newly combined authorities. Proactive planning will reduce disruption, prevent service duplication and ensure a consistent experience for residents.

3. Build capacity for future welfare delivery

In its Future of Local Government Report 2025, Civica — the UK’s leading public sector software provider — revealed that 40% of councils see limited digital literacy among staff as a significant barrier to digital transformation. This must change.

Investment in upskilling teams — particularly in digital systems, data analytics and audit practices — is critical. So too is the adoption of new tools and technologies to automate routine tasks, improve processing accuracy and enhance communication with citizens.

The transition to Universal Credit and the annual recalibration of Local Housing Allowance rates demand adaptive, tech-savvy teams. Building this capacity now will set the foundation for more agile, citizen-centred service delivery in the future.

4. Rebuild public trust

Financial resilience isn’t just about numbers — it’s also about relationships. Citizens must trust that their councils are using public funds responsibly, distributing benefits fairly and managing taxes transparently.

To build and maintain this trust, revenues and benefits teams must design services that are equitable, accessible and shaped around the needs of the community. Involving residents in co-designing systems and processes can also help ensure reforms reflect local priorities and enhance public buy-in.

5. Lead the narrative for change

Local government reform is ongoing, and the policy landscape is still evolving. Revenues and benefits teams should not wait passively for directives from central government. Instead, they should actively engage with national bodies, contribute to consultations and advocate for long-term funding models that support sustainable service delivery.

By speaking up and sharing best practices, local authorities can shape the future of local government finance — rather than simply reacting to it.

Harnessing the Power of Technology

The transformative role of technology in modernising revenues and benefits cannot be overstated. Among the key findings of Civica’s report, 51% of councils identified modernising outdated systems as a top priority for the year ahead, while 49% are focused on improving the digital experience for citizens. However, 57% of respondents cited budget limitations as the most significant obstacle to achieving their digital goals. Despite these challenges, there is growing momentum in collaborative approaches, with councils recognising the value of sharing best practices and resources to accelerate transformation.

Purpose-built public sector software is now a key enabler in helping councils automate complex workflows, improve data accuracy and deliver services at scale. From managing real-time updates from Universal Credit systems to tracking overpayments and ensuring audit compliance, advanced software solutions allow teams to respond faster and more intelligently. Moreover, cloud-based platforms support remote work, secure data sharing and integration across departments, helping councils break down silos and operate as cohesive units. By embracing digital platforms tailored to public service challenges, revenues and benefits teams can drive innovation, reduce manual effort and focus more on strategic decision-making that enhances financial resilience.

Revenues and benefits teams are no longer just back-office functions. They are the frontline architects of financial resilience in local government. The pace and complexity of reform may be daunting, but it also opens the door to real and lasting transformation.

Revenues and benefits professionals already possess decades of experience managing operational change. Now, with the right investment in people, technology and strategy, they can help redefine how councils deliver value to citizens, ensuring that local government is not just financially stable, but also fair, transparent and future-ready.