At the recent Autumn Budget, Chancellor Rachel Reeves introduced a number of far-reaching changes with significant implications for the local government and housing this year. Overall, the government is aiming to build a stronger economy by improving benefit standards and driving reforms to raise growth and living standards.
In this blog, we’ll delve into what this means in the months ahead, what plans the current parliament have announced and why it matters emotionally and strategically for Local Authority Leaders.
With rising demands, falling resources and mandatory regulations leading to workforce burnout, there is a huge need for Local Authorities to redesign their operating models, not just tweak. To scale out the new changes announced, both proactive action and accountability are needed.
In this blog, we have highlighted what areas our technology can support new changes to help you optimise your 2026 strategy to prepare for change and beyond.
Most authorities are expected to transition to a single unitary authority by 2028, with Surrey announcing their move into Unitary councils in 2027, which is a strong sign of things to come. As Surrey is one of the first two-tier areas chosen for an accelerated plan by the UK government to transition to a unitary system, Surrey residents will benefit from quicker decisions and improved public services. Whilst all Local Authorities have put their own proposals to the Government, it's speculated that many new authorities will be bigger, either county-wide or split into two, targeting larger areas rather than having multiple authorities in one place. All the consultations are available to look at now for the latest on LGR, and money seems to be the driving force for everything at the moment.
Whilst we do not know what the full extent of the impact LGR will have, we’ve collated recent insights into a blog, which covers what changes have been discussed and what this might mean for you and your team: Read our Devolution and LGR guide blog here.
The Welfare Reform will significantly affect Revenues and Benefits operations as the new UC health element claimants, as of April 2026, will see their UC health element almost halved and frozen. However, existing UC LCWRA claimants were protected in the recent bill despite the health element and freeze.
Key updates:
Another cohort affected by the recent changes is those in homelessness and temporary accommodation. They can now only get help through UC elements. This means that if those in homelessness move to general needs properties, they must be directed to UC for help with their housing.
Moving forward, teams will need to keep a clear audit trail of receipts of benefits and determine who may be more likely to be vulnerable by looking for vulnerability triggers (such as PIP). Watching for the vulnerability of LWCAR will be essential for staying ahead in the coming months and keeping residents protected.
In the future, if those on PIP get withdrawn, this presents an issue, as the trigger to know they are vulnerable is now gone. A lot of authorities are claiming back by saying a person is vulnerable without evidence; now by using software, teams are expected to back up the vulnerability with clear proof.
With regards to CTR, it’s been falling every year; claimants (England) fell from approximately 4.4 million (late 2015/16) to about 3.64 million (September 2025). Therefore, it will be interesting to see what the future brings. Currently, the Welsh Government is leading the way for council tax with their CTR national scheme; something England is using as a blueprint moving forward.
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Our advice to teams in the year ahead? Maximise the efficiency of your collections process. Consider our Voicescape Collections solution, a unique engagement system, to maximise revenue, resident engagement, and save time and money without stretching resources.
The Government is concerned about the consolidation of the marketplace regarding software, with an aim to broaden digital transformation for local government and those in housing. They believe that due to the limited number of suppliers, Revenues and Benefits teams need a choice to move from their current way of working. Nowadays, a majority of Revenues and Benefits teams use systems that are many years old and are quite complex to manage HB on.
When considering how new software can come in to help, Voicescape technology has adapted to meet the growing demands of public sector teams, and we are renowned in the sector as a trusted, award-winning supplier to local authorities and housing associations alike.
Here is exactly where Voicescape solves the operational consequences of the Budget:
+ UC Changes – shows a need for early identification and proactive engagement with residents to remain accountable, and technology is ideal for working with you to solve any teething problems new changes will bring.
It’s important to note policy changes will alter resident behaviour, not just admin. With this in mind, residents are bound to act differently under the new UC rule; therefore, engagement strategies will need to adapt as well.
We are offering a new operating model for Revenue & Benefits teams in 2026, focused on being predictive not reactive. By providing strategic automated engagement with human oversight, our solution will help channel your data, support vulnerability identification, and shift channels for efficiency. At Voicescape, we provide solutions with measurable outcomes, not just activity metrics, to support your teams and prevent your teams from being overstretched.
After the Budget, it’s clear teams need to focus on restructuring their collections strategy now more than ever to support and fund the large changes the government has announced. This requires teams to:
+ Recover lost income while giving officers more time to focus on quality conversations
+ Replace inefficient parts of working with cost-effective alternatives
+ Look to new ways of working to innovate and facilitate resident engagement at scale
+ Provide self-serve options for residents to drive action and accountability over their debt
Voicescape is built specifically for those looking to use technology to build trust and protect the relationship between a resident and Local Authority – it’s been critical to our customers to grow and strengthen operations. If this connection is cultivated and strengthened effectively, our technology can increase the likelihood that people can access vital services that will make a meaningful difference in their lives.
Voicescape Collections for Local Authorities will take the pressure off your teams for collections by replacing manual tasks with automation, whilst improving collection rates and working across a range of debt types.
Read our dedicated Voicescape materials and get in touch with us today to schedule a conversation on how our tailored solutions can help you strategise for the changes ahead.