Northgate will be providing the London borough with “Welfare Resilience Services.”
According to the supplier, the local authority will not be able to reduce the potential for losses previously caused by administration, such as overpayments.
The two-year deal, which has an option to extend to three, is set to offer the council value for money across a number of services including housing and council tax benefits, local welfare provision, free school meals and hardship payments.
Northgate claims the framework it is offering to Tower Hamlets is the “first of its kind” and ten other authorities in London have expressed interest in a similar service for their own organisations.
“Our partnership with Northgate will provide us with a comprehensive service, offering more flexibility, security and value for money,” claimed Steve Hill, head of benefits services at the council.
“We have seen how Northgate offers innovative solutions to councils and government and we are looking forward to working with them to build on an efficient and effective partnership in Tower Hamlets and with our wider London partners,” Hill added.
“We are extending our network of Regional Business Centres to deliver off site processing services,” claimed Joe Bradley, the company’s executive director.
“This will enable councils to enter into shared service arrangements to deliver high performing local welfare administration services, while also achieving cashable savings from reduced operating costs.
“We are keen to help drive this partnership with Tower Hamlets and establish a London Hub which provides mutually beneficial outcomes, such as sustainability and growth of local jobs, as well as opportunities for increase revenue income and investment in business improvements,” he added.