§ Earl Russellasked Her Majesty's Government:
Further to paragraph 13 of the Fifth Report of the House of Commons Select Committee on Social Security, they will give details of the financial incentive scheme for local authorities to encourage them to undertake anti-fraud work in housing benefit, 61WA and what monitoring systems are in place to ensure that these incentives operate only for information which is true.
§ Lord Mackay of ArdbrecknishSince 1993, the Department of Social Security has provided practical encouragement for local authorities' anti-fraud efforts by providing a framework whereby local authorities have been able to earn additional subsidy, through good performance in detecting fraud against housing benefit and council tax benefit, as measured against performance thresholds set by this department. A system of penalties is also in place for those authorities who are failing in their duty to protect public funds.
From April, the level of additional subsidy which local authorities receive on fraud savings in excess of their thresholds will be raised from 20 pence in the pound to 25 pence. For those authorities who are achieving savings of less than 50 per cent. of their performance threshold the rate of penalty will be increased to £1 in the pound.
The Audit Commission (Accounts Commission in Scotland) have primary responsibility for auditing local authority fraud savings totals. Every authority is subject to a detailed annual audit of their subsidy claims by independent district auditors. The department works closely with these organisations and provides guidance and advice as appropriate.