§ Ms RuddockTo ask the Secretary of State for Social Security, pursuant to his answer of 21 June,Official Report, columns 140–41, when he was first made aware of the problems concerning the checks made to ensure that unemployed claimants do not overpay their loans from the social fund; if he will list the district offices which have been affected; and how many claimants at each office have (a) had a refund or (b) had the overpayment offset against another loan.
§ Mr. ScottThe administration of the social fund is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member with such information as is available.
Letter from Michael Bichard to Ms Joan Ruddock, dated 4 July 1994:
The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking the Secretary of State, pursuant to his answer of 21 June, OR cols. 140–1, when he was first made aware of the problems concerning the checks made to ensure that unemployed claimants do not overpay their loans from the Social Fund; if he will list the district offices which have been affected; and how many claimants at each office have (a) had a refund or (b) had the overpayment offset against another loan.Firstly, I should explain that whilst the Agency is aware that there have been problems with unemployed customers overpaying their loans, statistics have not been maintained to record the number of individuals customers concerned or indeed the Districts involved. To obtain this specific information would require a manual trawl of each Districts records, an exercise which could only be undertaken at a disproportionate cost.With regard to checks which are carried out, I am pleased to tell you that there is not a problem with the checks I outlined in my previous response of 21 June 1994 [OR Vol 245 Col 140]. The automated and clerical checks are effective and minimise the risk of over-recovery, ensuring that if exceptionally, a customer overpays a loan, a refund is made or that over-recovery offset against another loan.I am unable to comment about any difficulties that the Employment Services Agency may have experienced where SF deductions are their responsibility. However, I can assure you that there is a regular dialogue between both Agencies where any problems are discussed and resolutions sought. Furthermore, I am confident that the automation of SF recoveries planned for April 1995 will improve matters still further.I hope you find this reply helpful.