17 February 2005 - Benefit Fraud Inspectorate (BFI) Report on the London Borough of Redbridge
The Secretary of State for Work and Pensions, Alan Johnson has today published a report by the BFI on the counter-fraud arrangements for Housing Benefit and Council Tax Benefit of the London Borough of Redbridge.
In 2003/04, the London Borough of Redbridge administered some £82.1 million in housing benefits, about 13.5 per cent of its gross revenue expenditure. BFI reviewed the counter-fraud arrangements in place to protect these significant sums, at the invitation of the Borough.
BFI found that Redbridge gives a high priority to combating benefit fraud and that the Investigation Team is experienced and sharply focused on deterring fraud. The Team raises a considerable number of sanctions against fraudsters and is well supported by council Members and managers.
However, BFI have serious concerns about:
- inappropriate use of authorised individual’s powers when obtaining information from third parties
- a poor relationship with the Department’s Counter Fraud Investigation Service
- non-compliance with the provisions of the code of practice on covert surveillance
- failure to follow the Department’s guidance on the administration of formal cautions
- breaches of the Police and Criminal Evidence Act 1984 in half of the interviews under caution examined by BFI
- the nature of referrals from the Metropolitan Police to the Investigation Team.
Chris Pond, Work and Pensions Minister said:
“I have seen the BFI’s report on the London Borough of Redbridge and I am obviously concerned about its findings. The Secretary of State has sent a copy of the report to the authority’s Chief Executive and we will decide if further action is necessary following full consideration of the report and any response from the Chief Executive. It is right and proper that the Chief Executive is given the opportunity to respond to the published report before we reach any conclusions in this matter. In the meantime I have asked the BFI to continue to examine counter-fraud practices in other local authorities as part of their 2005 inspection programme.”
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.
Notes for editors
- The process for the focused inspection at the London Borough of Redbridge included an initial fact finding stage, an on-site visit, and production and clearance of the report. The on-site visit took place during September 2004.
- The Minister for State announced in January 2004 that shorter more focused inspections, designed to provide for quick improvements in performance in specific areas of benefits administration, would be undertaken by BFI.
- 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.
- This report only looked at the council’s performance against Performance Standards for Counter-fraud and the internal audit and external audit elements of Strategic management for Housing Benefit and Council Tax Benefit.
- 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.
- The BFI was launched in November 1997 as part of the Government’s initiatives to reduce the high levels of fraud in the social security system. BFI is part of the Department for Work and Pensions, operating independently of those responsible for administering benefits, and reporting directly to the Secretary of State for Work and Pensions.
- The BFI inspects social security benefits administration and counter-fraud activity within the Department for Work and Pensions and local authorities, reporting its findings to the Secretary of State, and publishing its reports to promote good practice.
- 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
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