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19 July 2005 - Benefit Fraud Inspectorate (BFI) Inspection Report on Berwick-upon-Tweed Borough Council


The Secretary of State for Work and Pensions, David Blunkett, has today published an inspection report by the BFI on Berwick-upon-Tweed Borough Council’s counter-fraud arrangements.

In 2003/04, Berwick-upon-Tweed Borough Council administered some £5.6 million in housing benefits, about 30 per cent of its gross revenue expenditure. The council gives high priority to combating benefit fraud and is committed to complying with all aspects of the Security Against Fraud and Error scheme. The Counter-fraud Investigation team works hard to deliver a professional and high quality service. The team is well supported by the Leader of the Council, Members, the Chief Executive and senior managers.

The report notes a number of good practices, including:
· good working relations with key stakeholders
· a high standard of recording and filing of documentation in case files
· a high percentage of referrals investigated
· accurate subsidy claims that fully comply with Departmental guidance
· vigorous recovery of fraud overpayments and administrative penalties.

However, some important weaknesses were identified:
· poor interviewing techniques
· delays in investigating some cases
· interviews under caution not fully complying with legislation and Departmental guidance
· no systematic management checking regime.

The council demonstrated its commitment to improve performance by revising some procedures during the on-site phase of the inspection, including the management of formal cautions, and by acknowledging that other areas need improvement.
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


1. The BFI inspection at Berwick-upon-Tweed Borough 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.

2. The main element 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.

3. 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.

4. 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.


Press office: 0207 238 0866
BFI Press enquiries 01423 83 2982
Out of hours: 07659 108 883
Public enquiries: 0207 712 2171
Website: www.dwp.gov.uk