Issue - meetings

Report of the Chief Financial Officer to advise and update Members on the Counter Fraud performance of the Benefits and Local Taxation Service from the 1^st January 2008 – 31^st March 2008 and obtain approval for the Counter Benefit Fraud Strategy.

The Deputy Head of Benefits and Local Taxation, Tim Fisher, introduced the report. Mr Fisher reported that Counter Fraud performance in the last quarter had been positive, with 124 sanctions issued against a target of 126, and that the Fraud Team had achieved a CPA rating of 4 (excellent).

In response to the report of the Benefit Fraud Inspectorate following their inspection in 2007, an Anti-Fraud and Corruption Strategy had been drafted and was appended to the report for Members’ consideration. The strategy set out who is affected by the document, the importance of deterring benefit fraud, the relevant legislation and the procedures in place to minimise the risk of internal fraud. The Strategy also included changes to the reporting arrangements to the Audit Committee, and a blank example of the proposed new format for reports was also appended.

The Chair asked if there were any questions from the Committee. Cllr Bull asked how much input from Members there had been in drafting the strategy. Mr Fisher responded that the strategy had been drafted without Member input. Cllr Bull responded that he felt that members should have had an opportunity to have input into the strategy, as this was an issue that would have an impact on constituents. Cllr Gorrie supported Cllr Bull’s view that Member engagement with the strategy was needed, and enquired as to whether there was an equivalent policy in place for residents when they have been subject to an error on the part of the Council.

Referring to the £1m in overpaid benefit identified as part of counter fraud activity, Cllr Gorrie asked what the total amount of benefit paid out by the Council was annually, and what percentage of this £1m related to fraudulent activities, as opposed to Council or claimant error. Mr Fisher reported that the Council paid approximately £250m in benefits annually, and that the £1m related only to fraudulent activity, as there were separate figures relating to overpayments due to Council error and claimant error. Cllr Bull asked Mr Fisher to supply Committee members with the figures for benefits overpayments due to Council and claimant errors outside the meeting. It was also suggested that it would be useful for Members to know how many individual cases the £1m figure related to.

Cllr Bull expressed concern that the existence of a Fraud Investigation Team gave the impression that the Council was actively seeking out fraudulent activity, and that there was an assumption of guilt on the part of claimants. He felt that this conflicted with the Council’s work to ensure that all those who were eligible were claiming the benefits they were due. Mr Fisher responded that counter fraud activity was required as an assurance by central Government, who provide the funding for housing benefits. Counter benefit fraud activity was also required as part of the CPA.

Cllr Bull stated that prevention of overpayments due to error was essential, and asked how confident the Council was that adequate mechanisms were in place to  ...  view the full minutes text for item 10