A HOUSING benefits system will be given a £75,000 overhaul after serious flaws were found.

The system operated by Redcar and Cleveland Borough Council was examined by an external auditor after concerns were raised over its efficiency.

He said that there were "serious continuing weaknesses" in the service, and outlined areas of poor performance.

Among them were the slow response to claims, the council's failure to recover subsidies on payments, and the service's low level of productivity.

The auditor suggested a radical shake-up, taking two years to implement, as a way of addressing the problems.

Now councillors have followed his advice to set aside £75,000 for a complete overhaul of the service.

Councillor David Walsh, the leader of the council, said: "Housing benefits are relied on by many of the poorest people in the borough.

"We have got to look at ways of speeding up the service. We are looking at using consultants and, at the same time, bringing in better information technology.