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Swale Borough Council (Benefit Fraud)
The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond): On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the benefit fraud inspectorate (BFI) inspection report on Swale borough council was published today and copies of the report have been placed in the Library.
Following the housing Green Paper "Quality and Choice: A Decent Home for All", published in April 2000, the Department for Work and Pensions developed a performance framework for housing benefits. The performance standards for housing benefits allow 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.
In 2003–04, Swale borough council administered some £29.1 million in housing benefits, about 48 per cent. of its gross revenue expenditure.
In June 2004 BFI carried out a third inspection on Swale borough council and found that the council's benefits service had failed to fully implement 56 per cent. of the recommendations made in the second inspection report, published in September 2002.
The report notes that the council has not reached standard in any of the seven performance standards. The council did not monitor performance and the lack
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of reliable management information undermined the council's ability to effectively manage its benefits service and counter-fraud activity.
The council averaged 168 days to process new claims, and 66 days to process changes of circumstances, compared with performance standards of 36 and nine days respectively.
BFI reports that nearly 25 per cent. of telephone calls to the benefits service were unanswered. Decision letters needed to give clearer guidance and information to customers. There were delays in dealing with complaints and replies frequently did not cover the facts, were misleading and lacked sufficient detail.
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The management of the council's counter-fraud resources and quality of the investigative work was poor. Delays in dealing with changes of circumstances increased the level of preventable overpayments. Between March 2003 and March 2004, outstanding debt increased by 95 per cent.
The report makes recommendations to help the council address weaknesses and to further improve the administration of housing benefit and council tax benefit, as well as counter-fraud activities.
My right hon. Friend the Secretary of State is now considering the report and will be asking the council for its proposals in response to the BFFs findings and recommendations.