A COUNCIL may have to find up to £349,000 to pay for overtime to clear a housing benefit backlog of up to 4,000 claims.

The build-up of housing benefit claims, plus a further 2,000 council tax refund claims, has been reported by Redcar and Cleveland Borough Council.

The problem began because of an increased workload and staffing problems, which coincided with the implementation of a new verification system.

Now councillors will consider whether to approve an overtime payment budget or contract the extra work out.

The backlog peaked in October when about 16,000 items of post were unopened.

Since then the situation has improved, but leading council officer Carol Barnes has written a report to the council executive on how to clear the claims.

The most expensive option would be to contract a team of workers, which would cost £349,200.

Other options include using agency staff which would cost more than £260,000, directly employ temporary staff, costing more than £72,000, or paying overtime to council staff, which would cost between £60,375 for Saturday and evening work and £73,500 for working Sundays.

A further £25,000 would have to be found for clerks.

She said problems had been exacerbated by the council deciding not to fill six vacant posts while at the same time approving the implementation of a new verification framework.

She recommended that councillors approve the overtime option for council staff.

She said: "We recommend members approve the introduction of overtime working starting from Monday, December 16, with costs to be funded from the income generated by sale of furniture.

"The staff are experienced in the assessment and use of the in-house information technology system which makes them better able to shift claims quickly than new staff."

Councillor David Walsh, leader of the council, said: "These problems are not unique to Redcar and Cleveland. Housing benefit is a complex issue involving tenants, landlords, the council and benefits agencies and is always difficult. However, we are determined to get on top of this."

It is thought that most of the delayed claims are now only a few weeks old. Redcar and Cleveland Council's executive committee will discuss the issue today, at 10am, at Eston Town Hall.