11 November 2004 - Benefit Fraud Inspectorate (BFI) report: Eastbourne Borough Council
The Secretary of State for Work and Pensions, Alan Johnson, has today published a second inspection report by the Benefit Fraud Inspectorate (BFI) on the administration of Housing Benefit and Council Tax Benefit and counter-fraud activity by Eastbourne Borough Council.
In 2002/03, Eastbourne Borough Council administered some £31.8 million in housing benefits, about 52 per cent of its gross revenue expenditure.
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 they were assessed as providing a fair service. There were areas of strength at Eastbourne Council which included ongoing support for the Benefits service at a corporate level and investment in new technology.
The report finds that only 30 per cent of the recommendations made in BFI’s first inspection report had been implemented. For example, the first inspection report also recommended a review of the entire overpayments process but this had not been carried out. Claims verification was weak, management assurance checking was inadequate and guidance for staff and poor counter-fraud work was incomplete.
The council’s high level commitment to provide an effective benefit service was not followed through in operational planning and staff objectives. The organisational structure also contributed to a lack of direction and proved a barrier to effective communication within the service. However, a new management structure was introduced just before the BFI inspection.
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 standards 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 Eastbourne Borough 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 April 2004.
- 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 customers 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 customers 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
DWP Press enquiries: 020 7238 0866
BFI Press enquiries: 01423 83 2938
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171