25 August 2005 - Benefit Fraud Inspectorate (BFI) Inspection Report on Uttlesford District Council
The Secretary of State for Work and Pensions, David Blunkett, has today published an inspection report by the BFI on Uttlesford District Council’s counter-fraud arrangements.
In 2004/05, Uttlesford District Council administered some 10.7 million pounds in housing benefits, about 33 per cent of its gross revenue expenditure. The council’s commitment to combat fraud was commendable. Administrative penalties were recovered efficiently and all successful prosecutions were given publicity in order to deter potential fraudsters.
The council had, however, misinterpreted the rules governing the Security Against Fraud and Error (SAFE) scheme. This had resulted in a higher value of rewards being claimed than was due. Although the standard of the interviews under caution was high and all relevant legislation was followed, BFI found that in the majority of cases where a formal caution had been administered a full admission of guilt had not been obtained from the customer.
The Anti-Fraud team had no service plan and the only target that it worked towards was a monetary target for claimed SAFE rewards. BFI recommended that a broader range of targets covering quality and joint working should be introduced and that case reviews, management checks and the process for deciding which sanction to apply all needed to be formalised.
The council’s commitment to learn and put things right was impressive and many issues that were identified during the inspection were corrected immediately.
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.
James Plaskitt, Minister for Housing Benefit and Anti-Fraud, announced the publication of the report in a written ministerial statement.
Notes to Editors
- The BFI inspection at Uttlesford District Council covered only the council’s arrangements for countering fraud taking account, in particular, of the council’s compliance with the Department for Work and Pensions’ Security Against Fraud and Error (SAFE) scheme.
- The main elements of the SAFE are:
- prevention – offering higher incentive payments to local authorities that comply with the Verification Framework, as recognition of their efforts to prevent fraud entering the system
- detection – offering incentive payments to local authorities for the identification of both fraud and error overpayments
- sanctions and prosecutions – offering incentive payments to local authorities, not only for successful prosecutions but also for issuing an administrative penalty or formal caution.
- 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.
- 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 0866
BFI Press enquiries: 01423 83 2982
Out of Hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk