East Herts District Council and Stevenage Borough Council are joining forces to share services, saving councils and taxpayers thousands of pounds
They will join together to provide housing benefit, council tax, business rates and benefit fraud investigations.
Walk-in services will be maintained as now and claims and changes could be dealt with faster in the future with easier ways to get in touch.
Both councils approved the shared service, which will provide immediate savings of £133,000 in 2012/13 and £173,000 every following year.
Savings have already been achieved by a joint management arrangement, set up last August, giving total savings in excess of £200,000.
Work now begins on joining the two teams together, with a joint committee of councillors from both Stevenage and East Herts overseeing, with a view to the shared service going 'live' in December.
East Herts Council's Hertford base will be the 'hub', although many staff working in the shared service will be taking up homeworking, flexible working and remote working.
Secure IT systems allow officers to take calls and help customers whether working at home or in Hertford.
Michael Tindale, Executive Member for Finance, at East Herts Council, said: "Financial pressures on both councils will be challenging for the foreseeable future and while separately we can and have done much, working in partnership is the best way to continue making savings while still providing an excellent service."
Further information:
East Herts District Council