16 September 2004 - Benefit Fraud Inspectorate (BFI) Report: Teesdale District Council
The Secretary of State for Work and Pensions, Alan Johnson 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 Teesdale District Council.
In 2002/03, Teesdale District Council administered some £4.56 million in housing benefits, about 43.3 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.
The report commends the efforts of this small rural council to improve claims processing times, especially given its limited resources, but a lack of policies, procedures and guidance inhibit further improvements in performance.
Particular weaknesses were found in Customer Services. A Best Value benefits satisfaction survey due in 2003 had not been undertaken. There had been no measurement of customer waiting times or assessment of the telephone service provided. No formal take-up strategy was in place and BFI concluded that the council was not providing adequate information to current or potential customers.
The report found that informal working relationships between departments in the council had resulted in poor communications that were detrimental to Benefits service customers. The Housing Unit had sent repossession notices to council tenants with rent arrears even when the arrears were due to benefit claims not having been processed.
The report raises concern that there had been little work undertaken to recover overpayments. This had resulted in an accruing debt and consequential loss of available funds to the council. Although it was still to achieve its first successful prosecution, the application of other sanctions was an encouraging sign that the council was establishing an effective Counter Fraud operation.
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 Teesdale District 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 March 2004.
- The council's Benefits service was assessed as 'Poor' in October 2003 as part of the Comprehensive Performance Assessment programme.
- 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
Out of hours: 07659 108883
Public enquiries: 020 77122171