11 May 2004 - Benefit Fraud Inspectorate (BFI) Report: London Borough of Barking and Dagenham Council
The Secretary of State for Work and Pensions, Andrew Smith has today published an inspection report by the Benefit Fraud Inspectorate (BFI) on the administration of Housing Benefit and Council Tax Benefit and counter-fraud activity by London Borough of Barking and Dagenham 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.
The report finds that the council’s Benefits service, part of the Revenues Services, was embarking on a major programme of change that included improving its performance management, planning the replacement of its Benefits IT system, and reviewing its staffing structure. The current IT systems were inadequate, hindering rather than supporting the Benefits service.
The report finds that the average time taken to process new benefit claims was 43 days, compared to the Performance Standard of 36 days, and 90 per cent of new claims were processed within 14 days of receiving all information. However, there were delays in dealing with changes of circumstances and appeals and there was no management checking of work.
The council’s telephone service was poor with 54 per cent of calls not being answered.
Customers were often required to attend the offices on more than one occasion because they had not been asked to provide all the necessary information at the first point of contact. The council’s benefit claim forms and decision letters needed to improve to give clearer guidance and information to customers.
The report also finds that all areas of the council’s counter-fraud activity were weak. New investigation staff had been appointed in 2003 but there were inadequate systems in place to allow them to progress investigations promptly.
The council was unable to provide verifiable performance information relating to overpayments of benefit, and no single officer had overall control of overpayment recovery. Also the council did not use the full range of recovery methods available.
The report notes the considerable efforts made by the council’s Members, senior officers and staff since the Comprehensive Performance Assessment in 2002, and commends the council for developing a Performance Standards Action Plan to address areas below Standard.
Cllr Terry Wade, Barking and Dagenham Council’s Executive Member for Developing Rights and Responsibilities, said:
"The Council is pleased to have benefited from the experience and expertise of the BFI and has already begun to implement changes in areas highlighted as weak in the report. We feel that the report has recognised the efforts we have made towards improving the service and look forward to ensuring this progress continues.
"We are working closely with the BFI's Performance Improvement Action Team who, by offering us their assistance in three key areas, have demonstrated their confidence in our ability to improve. I anticipate that, over a 12 month period, the Council will make significant progress in its provision of benefit services."
In 2002/03, London Borough of Barking and Dagenham Council administered approximately £65.4 million in housing benefits. This is approximately 16 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 inspection at London Borough of Barking and Dagenham 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 November 2003.
- 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. These 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.asp
- 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.
Department for Work and Pensions Press enquiries 020 7238 0758
BFI Press enquiries 01423 83 2938
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk