Housing Benefit (Hansard, 7 February 2000)

§ 6. Dr. Brian Iddon (Bolton, South-East)
If he will make a statement on the housing benefit verification framework. [107192]

§ The Parliamentary Under-Secretary of State for Social Security (Angela Eagle)
The verification framework is a key part of our overall strategy to root out fraud and error in housing benefit. The framework is a good practice guide that forms a platform for secure and accurate administration by defining the evidence that should be gathered to support a claim for housing benefit or council tax benefit. It also defines the frequency of subsequent checks during the life of a claim. As of 28 January, 226 local authorities had received funding to implement the framework.

§ Dr. Iddon
Various housing organisations in Bolton have expressed concern about how the housing benefit verification framework is operating. For the record, will my hon. Friend assure us that no one will be denied housing benefit—hence accommodation—because he or she cannot produce two bona fide forms of identification? Will she assure us that benefit will not be stopped after a housing officer has attempted a second visit, having failed to make contact on the first, particularly when it occurs as early as 7.30 am to 8.30 am?

§ Angela Eagle
The idea behind the verification framework is that it will secure the gateway to benefit, which was too lax in the past. That involves proof of identity. However, we have improved the framework in the light of its live operation, not by reducing security but by ensuring that we fit in with people's life styles. For example, hostel dwellers do not often have two proofs of identification, and we have made adjustments accordingly. However, we do not want to make housing benefit security any worse, and the verification framework is a big improvement. We want all local authorities to put it into effect.

§ Sir Sydney Chapman (Chipping Barnet)
Last year, there were nearly 250,000 cases of housing benefit fraud, but only 700 successful prosecutions. Given those figures nearly three years after the Government came to office, how can the hon. Lady continue to say that Ministers will be tough on housing benefit fraud?

§ Angela Eagle
We inherited a difficult system from the Conservative Government who fragmented the administration of housing benefit to 409 different local 10 authorities with which we must co-operate. We realised that there was a problem with prosecution, and we have launched prosecution pilots in which we lend departmental lawyers to local authorities in order to pursue cases. We are tightening up.

§ Mr. Dale Campbell-Savours (Workington)
My hon. Friend is aware that I have been doing some work on reform of the housing benefit system and on the relationship between rents paid and taxes paid by landlords. Will she tell me how that work is proceeding in the Department?

§ Angela Eagle
As always, my hon. Friend is most ingenious and has come up with some very interesting ideas. I assure him that the Department is taking a close look at them.

§ Mr. Nigel Evans (Ribble Valley)
Is the Minister aware of a case in which a person was caught claiming for 43 children and 11 houses? He was an illegal immigrant and was jailed for three and a half years. Will she stress to people who are cheating the system that they cheat not only the Government but those people who could also be receiving benefits, if the system were not being fleeced as it is? As there are a reported 70,000 asylum seekers flooding into the country, will she reassure the country that, whereas the Home Office seems to have lost its grip on those people, the Department of Social Security will ensure that they are not fleecing the system?

§ Angela Eagle
As always in this matter, the hon. Gentleman makes a disgraceful contribution. I assure him that we take fraud extremely seriously. He proves that by citing a case that was prosecuted successfully and in which the person was jailed. Prosecutions are going up. We shall not tolerate fraud in the social security system; we work night and day to ensure that we minimise successful fraud.

§ 7. Mr. Peter L. Pike (Burnley)
What representations he has received regarding time taken in dealing with housing benefit claims. [107193]

§ The Parliamentary Under-Secretary of State for Social Security (Angela Eagle)
The Department regularly receives correspondence about local authority administration of housing benefit. Working with local authorities, we aim to transform the delivery of housing benefit so that it is faster, more accurate and more secure against fraud and error.

§ Mr. Pike
I thank my hon. Friend for that answer. We acknowledge the actions that have already been taken. However, does she agree that the housing benefit system remains complex and that, although a verification process is needed, many councils are struggling with the system and many people have to wait far too long? That is extremely worrying, especially for elderly people who have never been in debt and who think that they are in debt although in fact they are not. Will she ensure that councils are able to deal with those claims speedily, thus removing such anxieties?

§ Angela Eagle
We always have to find a balance between securing the gateways to the benefit and speed. Some local authorities experienced a decline in their 11 ability to process housing benefit forms when they adopted the verification process. However, because of the co-operation that we are receiving over live running, I assure my hon. Friend that we aim to get right the balance between accuracy and speed.

§ Mr. Desmond Swayne (New Forest, West)
Given the critical importance of that benefit, the figures cited by my hon. Friend the Member for Chipping Barnet (Sir S. Chapman) and the importance that the Government attach to the benefit, why have no proposals for its reform been put to the House during the lifetime of this Government? When can we expect them?

§ Angela Eagle
We have introduced many reforms to the housing benefit system. For example, we set up the benefit fraud inspectorate, which is currently examining every local authority among the top 30 housing benefit spenders. We have also introduced changes to weekly benefit savings to encourage prosecutions. Almost all local authorities have remote-access terminals, which give access to Benefit Agency records so that they can make cross-checks. We are introducing the electronic transfer of data between the BA and local authorities, beginning this month. We have set up a pilot to examine the single gateway to the benefit system. We have done much; the hon. Gentleman will have to wait a little longer for the Green Paper.