5 February 2004 - Benefit Fraud Inspectorate Follow-up Report: Dundee City Council
The Secretary of State for Work and Pensions, Andrew Smith has today published a follow-up inspection report by the Benefit Fraud Inspectorate (BFI) on the administration of Housing Benefit and Council Tax Benefit and counter-fraud activity by Dundee City Council.
BFI inspected the council against the Performance Standards for housing benefits. The report found that the council was not at standard for any of the seven functional areas – strategic management, customer services, processing of claims, working with landlords, internal security, counter-fraud, and overpayments. However, the council is committed to a performance improvement programme.
The report shows that there had been improvement since BFI’s first inspection report, published in June 1999, and the council’s overall level of performance for administering benefits and counter-fraud activities was fair.
The council had responded positively to the first inspection, introducing 39 (71 per cent) of 55 major recommendations. However, a number of setbacks and problems had prevented sustained improvement.
The council’s evidence gathering to support benefit claims had improved significantly since the earlier inspection and was generally thorough.
However, clearance times for processing benefit claims, which had shown some improvement since 1999, were in decline at the time of the follow-up inspection and did not meet national targets. Overpayments of benefit were occurring because notified changes of circumstances were not being dealt with promptly.
Since the first inspection, the council had introduced a benefit fraud prosecution policy and trained its counter-fraud investigators to professional standards. The quality of the council’s counter-fraud investigations had improved markedly and it used sanctions to punish and deter benefits fraudsters.
In 2002/03, Dundee City Council administered approximately £70 million in housing benefits. This is approximately 14 per cent of its gross revenue expenditure.
BFI is an independent unit within the Department for Work and Pensions that reports directly to the Secretary of State for Work and Pensions on the standard of benefit administration and counter-fraud activity.
Chris Pond, Work and Pensions Minister announced the publication of the report in a written ministerial statement.
Notes for editors
- The process for the follow-up inspection at Dundee City Council included an initial fact finding stage, an on-site visit, and production and clearance of the report. The on-site visit took place during August 2003.
- BFI published its first inspection report on Dundee City Council in June 1999.
- Each BFI inspection report is considered by the Secretary of State who decides whether any further action is appropriate. The Secretary of State has powers to issue directions to a local authority to secure acceptable or minimum standards in performance.
- In its response to the Housing Green Paper of November 2000, the Department for Work and Pensions developed a performance framework for housing benefits. The HB/CTB Performance Standards, published in April 2002, enable local authorities to make a comprehensive self-assessment of whether they deliver benefit effectively and securely. They are the standards that the Department for Work and Pensions expects local authorities to aspire to and achieve in time.
- The Department for Work and Pensions has not set a timescale for when the standards need to be met by local authorities.
- BFI inspects against the seven functional areas of the Performance Standards:
- Strategic management – clearly stated aims and action, resources and monitoring, with effective training and IT
- Customer services – providing an efficient and prompt service that meets the needs of all claimants and persons with a legitimate interest in a claim
- Processing of claims – speedy and accurate claims processing with effective verification
- Working with landlords – to give private landlords the confidence to let to claimants and to support delivery of social housing
- Internal security – preventing internal fraud
- Counter-fraud – deterring, preventing, detecting and pursuing fraud
- Overpayments – preventing, identifying and recovering overpayments.
- The HB/CTB Performance Standards can be downloaded from: www.dwp.gov.uk/housingbenefit/publications/2003.
- Media copies of the BFI inspection report can be obtained from the Department for Work and Pensions Press Office on 020 7238 0866.
- All BFI inspection reports can be found on the BFI website – www.bfi.gov.uk.
Press office: 020 7238 0866
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Website: www.dwp.gov.uk