Benefit Fraud (Highland District Council) (Hansard, 31 October 2001)

§ Malcolm Wicks

The Benefit Fraud Inspectorate report was published today in respect of Highland district council and copies of the report have been placed in the Library.

Inspectors found that despite covering the largest geographical area of any council in the UK, the council was effective at promoting the take-up of benefit and provided access to advice on HB and CTB through a number of local outlets.

Although benefit claims were processed on time, inspectors consider the council's claim form was poor and its approach to verification was inconsistent, resulting in serious implications for the security of the benefits gateway. The report notes the council intended to phase in the Verification Framework from April 2001 and also agreed to revise its claim form.

Inspectors consider one of the underlying problems was the council's failure to manage benefits, particularly the lack of a senior manager with direct responsibility for HB and CTB. The report notes that addressing this failure is fundamental to facilitating improvements and successfully implementing BFI's recommendations.

Inspectors found limited counter-fraud activity, with no procedures in place with the procurator fiscal to effectively pursue prosecutions nor to offer administrative penalties. Insufficient staff were allocated to the counter-fraud team. Investigation work was in arrears and some investigations had not been fully completed. BFI considers one third of the council's Weekly Benefit Savings claims were incorrect.

The report makes recommendations to help the council address weaknesses and to improve the administration of Housing Benefit and Council Tax Benefit, as well as its counter-fraud activities.

My right hon. Friend the Secretary of State is now considering the report and will be asking the council for its proposals in response to the findings and recommendations of the BFI.