Islington Council has become the third inner-London borough to take administration of housing benefit back in-house.
Islington is understood to have paid £2m to terminate terminate its seven-year contract with outsourcer ITnet two years early after ITnet fell foul of penalty clauses and performance targets added to the contract 18 months ago.

Islington achieved the sixth-worst time for processing new claims – 131 days – in the Department of Work and Pensions' survey for the second quarter of 2002/03.

Staff will transfer back to the council under TUPE rules and work under the new assistant director of housing in charge of housing benefit, Ian Evans.

An improvement plan will immediate begin. ITnet has been awarded a separate contract to provide backroom IT services and technical support.

welcomed the news. "Housing benefit administration has been a nightmare," he said.

This change is about making making sure residents get a good service."

Source

Housing Today