19 July 2005 - Benefit Fraud Inspectorate (BFI) Inspection Report on Maldon District Council
The Secretary of State for Work and Pensions, David Blunkett, has today
published an inspection report by the BFI on Maldon District Council’s
counter-fraud arrangements.
In 2004/05 Maldon District Council administered some £11 million in
housing benefits, about 50 per cent of its gross revenue expenditure. The
council is committed to tackling benefit fraud and its counter-fraud work
was well supported by Members and senior managers. Demanding targets for
fraud work were set and achieved. Investigations were subjected to a thorough
checking regime and there was a clear process for authorising and applying
sanctions. The council had a good working relationship with the Department’s
Counter-Fraud Investigation Service and had successfully undertaken joint
investigations leading to sanctions. The Police and Criminal Evidence Act
1984 was strictly adhered to and surveillance activity carried out in accordance
with legislation.
But, the council was not fully complying with the Security Against Fraud
and Error scheme in that a clear admission to the offence was not obtained
before the offer of a caution to the customer.
Investigations resulting in administrative penalties and prosecutions were
carried out to a high standard, and interviews under caution were conducted
in accordance with the relevant legislation.
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 Maldon 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).
2. The main elements of the SAFE scheme 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