HC Deb 15 May 2000 vol 350 cc5-7
2. Mr. Peter Brooke (Cities of London and Westminster)

If he will make a statement on progress in combating housing benefit fraud. [120937]

The Parliamentary Under-Secretary of State for Social Security (Angela Eagle)

Countering housing benefit fraud continues to be a high priority for us. The housing Green Paper, published on 4 April, sets out our plans and proposals to improve housing benefit and tackle fraud. My right hon. Friend the Secretary of State recently wrote to all council chief executives warning them to remedy weaknesses identified by the benefit fraud inspectorate. He made it plain in that letter that, if the BFI reports a local authority's persistent failings, we will direct the standards to be achieved by that authority with time scales for improvement and enforce them rigorously.

Mr. Brooke

Does the Minister recognise that those vanguard local authorities that have invested in fraud prevention measures may be unfairly penalised if the weekly benefits savings targets do not accurately reflect the success that they have achieved in prevention?

Angela Eagle

We changed the way in which the weekly benefits savings subsidy system worked in response to concerns expressed by the National Audit Office and the Public Accounts Committee, which showed that it was an inaccurate test of the savings achieved. Weekly benefits savings are now much more accurately assessed, but, to recognise the change from the old system to the new, early this year we announced a change in the way in which we would pay subsidy, which included new incentives for local authorities to prosecute fraudsters and incentives for those local authorities that participate in the verification framework.

Mr. Jeremy Corbyn (Islington, North)

Will my hon. Friend extend her examination of benefit fraud to the non-delivery of benefit to legitimate claimants? Is she aware that in Hackney and Islington, the service is provided by a company called IT Net, and that, as a result of its inefficiency and incompetence, thousands of legitimate claimants have been threatened with the loss of their homes—council, housing association or private? Is not it also a fraud against them if their perfectly correct claim for a benefit is not met by the service and they end up being homeless as a result?

Angela Eagle

We are well aware of the problems being experienced in my hon. Friend's constituency and are keeping a close eye on them. I sympathise very much with the points that he made. It is clearly the case that those who are entitled to housing benefit should receive it in a timely fashion, but I must point out that under the framework of law left to us by the Conservative party, the legal responsibilities for delivering housing benefit lie with the local authority.

Mr. Eric Pickles (Brentwood and Ongar)

Does the hon. Lady recall press releases being issued early this year, trumpeting the success that the Government claim on housing benefit fraud? When they were released, was she aware that the situation on the ground was exactly the reverse? Is she aware that successful prosecutions for housing benefit fraud are down by 50 per cent. and that 40 per cent. of local authorities have no formal prosecution policy?

What action will she take to ensure that the Department correctly briefs Ministers on the true facts of housing benefit fraud? Given that the right hon. Member for Birkenhead (Mr. Field) described the Government's fraud policy as nothing more than the normal roller-towel press release… will she undertake to issue fewer press releases about beating housing benefit fraud and to ensure greater application?

Angela Eagle

An awful lot of nonsense about housing benefit fraud appears in the press. A recent example of that was in The Sunday Times this week, which produced a hotchpotch of misinterpretation, misrepresentation and muddle. One of the figures that it came up with was that the proportion of housing benefit fraud cases won…had collapsed from 38 per cent. to 18 per cent. in the space of a year. That is wrong. The 18 per cent. figure is an estimate for the first half of this year. I can tell the hon. Gentleman that the volume of prosecutions referred to lawyers this year has increased by 47 per cent., which is far better than the rubbish we had when that Conservative lot opposite were in charge.