Government inspectors have noted "significant improvements" in the time it takes to process benefit claims in Oxford.
Early last year, a backlog of 2,565 claims built up, but city council spokesman David Penney today declared: "There is no backlog at present."
The improvements come after a £236,000 Government grant to employ more staff and buy computer equipment.
The Benefit Fraud Inspectorate's annual report said the city was no longer in the bottom 25 per cent of authorities, and the average time it took to process housing and council tax claims dropped from 77 to 49 days last year.
The city's executive member for local services Richard Tarver (Lab) said this was "an impressive step forward" and praised the hard work of staff.
But Liberal Democrat councillor Fiyaz Mughal said: "I am delighted to hear there has been some improvement but it is still not good enough to make claimants wait for 49 days."
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