Agenda item

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 assist  residents for whom English was not their first language, and residents whose literacy levels prevented them from fully understanding the benefits process. Mr Fisher reported that there was a working group with representatives from Housing, particularly in relation to homelessness through the Preventions and Options team, which was looking at ways of ensuring that forms were completed properly.

Cllr Vanier expressed concern that constituents had reported that they had notified the Council when their circumstances had changed, but that it had taken the Council some time to make the necessary amendments. It was therefore important for the Council to improve its own internal systems. Mr Fisher responded that the times for processing changes of circumstances had improved, and that there was currently no backlog of work in the team. Work would continue to ensure that these improvements were maintained. Mr Fisher also reported that a new, shorter application form was being introduced for registering changes of circumstances, and this was welcomed by the Committee.

Mr Fisher reported that the changes to the benefits system relating to the Local Housing Allowance, which had come into force from 7 April 2008, had not caused any problems to date, although the Council was monitoring any potential issues relating to residents seeking to cease their present benefits and reapply under the new system.

The Chief Financial Officer, Mr Almeroth, reported that the strategy that had been drafted was an articulation of procedures that were already in place, but that the Benefit Fraud Inspectorate had recommended that these be documented in a statement agreed by the Committee. In accordance with Members’ comments, Mr Almeroth advised that Members would be given an opportunity to provide input into the draft. In response to Cllr Gorrie’s query regarding the policy for residents in the event of Council error, Mr Almeroth reported that policies were in place, but that these were not referred to in the report as they did not relate to counter fraud activity. Mr Almeroth also added that the Council had a clear responsibility to detect and prevent benefit fraud, and residents would recognise that these activities were of benefit to all tax-payers; when cases had gone to court, these had been reported favourably by the local press. The Chair commented, concurring with the views and comments of the Chief Financial Officer, that as per the terms of reference, the committee would need to ‘monitor Council policies on whistle blowing and anti-fraud and corruption’. The Chair commented that he believed that members of the committee were aware of these responsibilities.

There being no further comments, it was:

RESOLVED

i.                    That this report and the work being carried out by the Benefits and Local Taxation Service in relation to Counter Fraud activity be noted, together with Members’ comments.

ii.         That members be consulted on the draft Counter Benefit Fraud strategy before publication.