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19 July 2005 - Benefit Fraud Inspectorate (BFI) Inspection Report on Shepway District Council

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


In 2003/04 Shepway District Council administered some £30 million in housing benefits, about 48 per cent of its gross revenue expenditure. The council is keen to take a strong stance against benefit fraud. The work of the Fraud team is well supported by Members, the Chief Executive and senior officers.

Good practices include:
· a Code of Conduct for counter-fraud investigators
· well trained and experienced fraud staff
· authorised officers are registered with the Department and are working well, within the legislation
· all surveillance is authorised and reviewed regularly
· excellent publicity for the prosecutions that the council has undertaken.

However, BFI found weaknesses in the investigation process and in the management of the Fraud team, including:
· interviews under caution were very brief, with poor interviewing techniques being used in some cases
· errors and omissions in both the case log notes and paperwork
· the council’s sanction criteria are too vague to be applied consistently and reasons for variance are not always fully documented
· surveillance was not always proportionate or effective
· management checks are not carried out, and all action taken during an investigation is not always recorded on the file in accordance with the Department’s guidance.

The council recognises the need to improve practices in these areas and have asked for support from BFI’s Performance Development Team.

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 Shepway 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