§ 2. Dr. Stephen Ladyman (South Thanet)What progress has been made in improving co-ordination between the Benefits Agency and local authorities in combating fraud. [83992]
§ The Minister of State, Department of Social Security (Mr. Stephen Timms)There is good progress on a range of fronts. We have earmarked funding in each Benefits Agency area to help to build stronger links with local authorities. Last month, the Benefits Agency and local 3 authorities were invited to submit joint proposals for projects to tackle fraud together. Service level agreements are in place giving each party a clear statement of how co—operation should work in practice. Among other initiatives, we have, so far, installed more than 300 remote access terminals to allow local authorities access to Department of Social Security benefits data.
§ Dr. LadymanI thank my hon. Friend for that answer. Is he aware that Thanet district council has recently been commended by the benefit fraud inspectorate for its work to prevent and to detect fraud? That accolade was earned after much hard work and as a result of being able to put resources into fraud detection and prevention, which includes co-operation with the Benefits Agency. If the system of weekly benefit savings is to be replaced, will he assure me that the new system will continue to provide councils such as Thanet with the resources that it needs to co-operate with the Benefits Agency and to invest in such fraud detection and prevention?
§ Mr. TimmsI can give my hon. Friend that assurance. I commend the achievements of Thanet district council in tackling fraud. Indeed, I commend the efforts of my hon. Friend, who was the chair of finance at that local authority when the lamentable record of the Conservative administration at Thanet was being turned round.
A commendation from the benefit fraud inspectorate is based on careful and thorough analysis; it is not lightly given. Last week, I visited the BFI headquarters and was able to see for myself the thoroughness and detailed preparation that go into its important work in all the local authorities that are inspected.
As in the case of Thanet, the WBS—weekly benefit savings—system has encouraged local authorities to allocate adequate resources to the detection of fraud. That is to be welcomed. We will continue to use WBS with local authorities for some time yet, but we also need to encourage work on prevention; WBS focuses on detection. That is the central purpose of the verification framework, and we are funding local authorities £100 million to implement it.
§ Mr. Edward Leigh (Gainsborough)One of the best ways in which to combat fraud would be to automate the payment of benefits, but that has been the subject of a long-standing dispute between the Department of Trade and Industry and the Department of Social Security. Will the Minister honestly say what has happened to the ICL contract? We gain lots of information from unattributable briefings to the press. Will he come openly to the House and explain what is going on?
§ Mr. TimmsThere have been a number of delays with the Horizon project and against that background, the Government commissioned a substantial review of the project, which began last year. Everyone involved—ICL, Post Office Counters Ltd, as well as the Department of Social Security—has been looking again at the project to find a way in which everyone can make a commitment to it. I understand that we can expect an announcement about it from the Secretary of State for Trade and Industry later today.