Gloucester City Council claimed this week that a welfare ICT outsourcing deal has saved more than £200,000 a year over the past four years.

The council has agreed to extend its original seven year deal with supplier Civica to October 2021, it has announced.

The extension is set to save a further £100,000 during the three year extension period, it claimed.

David Norman, cabinet member for performance and resources at the council, said: “The Civica revenues & benefits partnership has been a success for Gloucester City Council.

“It demonstrates how a public-private partnership can help local authorities achieve savings whilst continuing to deliver an excellent service to the residents of Gloucester.”

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Civica provides revenues, benefits and services for the authority, and has increased the council’s collection of council tax and the speed of processing benefits, he added.

Civica has also set up a service centre with the council, which provides services to nearly 50 local authorities across the UK.

Simon Downing, chief executive of Civica, said: “Local authorities continue to face the challenge of delivering greater efficiencies in response to tightening budgets, meaning service innovation is key.”