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 July 2008 – 30^th September 2008.

Ian Biggadike, Acting Head of Benefits and Local Taxation, presented the report on the counter fraud performance of the Benefits and Local Taxation Service from the 1^st July  – 30^th September 2008. The Committee was advised that 10 sanctions had been issued for this quarter, against a target of 31. It was noted that this underperformance was largely due to the suspension of Housing Benefit Matching Service referrals and subsequent data de-encryption problems during this period. It was anticipated that, despite the difficulties in this quarter, the targets for the year would be met.

The Committee was advised that approximately £500k of overpaid benefits had been identified, for which approximately £200k had been generated from central government subsidy. It was clarified that the subsidy covered 40% of any identified overpayment as a result of fraud, but that the remaining 60% shortfall would need to be offset by the recovery of the overpaid amount by the council. It was reported that current recovery performance in relation to all in-year overpayments was approximately 55%, meaning that the subsidy paid and recovered overpayments for the year in relation to counter fraud activity would total around £474,843, offsetting the approximate overpayment of £500k. It was reported that if recovery performance were high enough, together with the government subsidy, more than 100% of the original amount paid out could be recovered. In addition to recovery work, it was confirmed that there was significant activity in place aimed at reducing the amount of overpayments paid out in the first place. It was confirmed that overpayments due to council error would be 100% subsidised by the government, up to a threshold amount.

The Committee was advised of proactive work to encourage benefit claimants to notify the Council of any change of details, including the ‘keep us informed’ campaign, and work with customer services to ensure that callers were reminded to tell the council of any changes in circumstances. Work in partnership with the pensions service to encourage benefits take-up had resulted in around £674k of additional benefits being awarded to claimants, and the Acting Head of Benefits and Local Taxation would circulate the figures relating to this activity to Committee members outside the meeting.

In response to a question from the Committee, it was confirmed that data was shared between the council and Homes for Haringey. It was also confirmed that the suspension of the Housing Benefit Matching Service did not affect the routine processing of claimants’ information, and only had an impact on counter fraud activity. The Committee asked whether there was a policy in place to prosecute anyone found to be making malicious allegations of benefit fraud; it was confirmed that no such policy was currently in place, and that this would be looked into further.

Concern was expressed that fear of sanctions if information was not updated quickly enough was a key factor in deterring people from claiming benefits to which they were entitled. The Committee agreed that it was in everyone’s interests to ensure that people were claiming the benefits to which they were entitled, but also to ensure that only benefits to which people were entitled were paid out. It was suggested that the success in increasing the uptake of benefits via the partnership working with the pensions service be publicised, for instance in the Haringey People, as a way of encouraging further benefits take-up.

RESOLVED

That the report and the work being carried out by the Benefits and Local Taxation Service in relation to Counter Fraud activity be noted, in conjunction with the above comments made during consideration of the report.