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29th June 2005 - Benefit Fraud Inspectorate (BFI) Inspection Report on Rossendale Borough Council

The Secretary of State for Work and Pensions, David Blunkett, has today published an inspection report by BFI on Rossendale Borough Council.

In 2003/04, Rossendale Borough Council administered some £10 million in housing benefits, about 55 per cent of its gross revenue expenditure. The council was not at Standard in any of the 7 functional areas of Performance Standards. However, since August 2003 it had made and sustained improvements in a number of areas. It had processed claims faster, improved the standard of verification of claims, and prosecuted fraudsters and publicised its counter-fraud efforts. As a result of these improvements the council is now providing a fair benefits service.

However, there were significant weaknesses in strategic management, project management and planning arrangements, management of counter-fraud operations, and the recovery of overpayments.

As a result of BFI's inspection, errors were found in recording the time taken to process new claims which means that the council had been understating its performance. Claims were in fact being processed in 46 days on average between April and December 2004 compared with the council's previously reported performance of 55 days.

By the end of BFI's inspection, performance had improved to the extent that for the month of December 2004 claims were processed within an average of 36 days.

Internal Auditors and the Audit Commission had previously identified some of the weaknesses described in the BFI report. However, the council had not implemented their recommendations and audit findings were not reported to Members and senior officers.

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, anti-fraud Minister, announced the publication of the report in a written ministerial statement.

Notes to Editors

  1. 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.
  2. Media copies of the BFI inspection report can be obtained from the Department for Work and Pensions Press Office on 020 7238 0866.
  3. All BFI inspection reports can be found on the BFI website - www.bfi.gov.uk.

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