HC Deb 12 November 1996 vol 285 cc195-6W
24. Mr. John Marshall

To ask the Secretary of State for Social Security if he will make a statement about the effectiveness of his Department's attempts to combat fraud in housing benefit. [1721]

Mr. Heald

We fully support local authorities in their efforts to prevent and detect fraud and abuse of housing benefit. In 1995–96, authorities made fraud savings of £224 million and earned £28 million in extra subsidy for their work through the incentive scheme we have introduced. In March this year, my right hon. Friend the Secretary of State announced a comprehensive strategy for tackling housing benefit fraud. We are seeking further powers to help authorities fight fraud in the benefit fraud Bill which we shall shortly lay before the House.

27. Mr. Welsh

To ask the Secretary of State for Social Security if he will report on the progress of the interdepartmental review of proposed changes to housing benefit for people living in supported accommodation. [1724]

Mr. Roger Evans

The terms of reference for the Review of supported accommodation were announced on 22 October. We have discussed the role played by housing benefit in funding supported accommodation with housing providers, umbrella organisations, local authority associations and welfare rights groups throughout Great Britain. The anecdotal evidence is that housing benefit does meet charges for support which enables people to remain in the community. This is consistent with findings of qualitative research carried out by the centre for housing policy which ware published on 31 October. We have commissioned the centre for research in social policy at Loughborough university to carry out research attempting to quantify the extent of this expenditure whilst the interdepartmental review will continue to consider all aspects of the funding of supported accommodation and report upon where the sustainable balance should lie between social security and other funding sources in supported accommodation and, if necessary, clarify legislation.

Mr. Duncan Smith

To ask the Secretary of State for Social Security what plans he has to encourage further competition in the administration of housing and council tax benefits. [4111]

Mr. Evans

Some local authorities have expressed concern that existing legislation prevents contractors who undertake housing and council tax benefit administration from carrying out determinations of benefit entitlement. This causes unnecessary double handling of claims and reduces the efficiency of contracts which local authorities are able to negotiate. We therefore propose to allow contractors to perform such determinations. In particular, this will enable local authorities to run pilots to establish whether they would wish to see such work permanently contracted out.

This change, allied to the proposals which my right hon. Friend the Secretary of State for the Environment has announced today for changes to the compulsory competitive tendering framework for local authority professional services and housing management, will create a climate in which local authorities are able to negotiate more efficient arrangements for the administration of these benefits.

We will open consultations shortly with the local authority associations with a view to bring forward an order under the Deregulation and Contracting Out Act 1994.