§ Dr. IddonTo ask the Secretary of State for Social Security (1) what factors underlay her decision to withdraw the offer of extra subsidy to local authorities to detect housing benefit fraud; [53277]
(2) if she will require retrospective introduction of weekly benefit savings for the 1997–98 financial year; [53274]
(3) for what reasons subsidy to local authorities will be lost if housing benefit (a) ceases and (b) is reduced before a designated fraud officer becomes involved; [53272]
(4) what incentive she will provide for local authorities to detect housing benefit fraud; [53273]
(5) when she will reply to the Local Government Association representations on the Draft Weekly Benefit Savings Subsidy Guide. [53267]
§ Mr. Denham[pursuant to his reply, 30 July 1998, c. 474–75]: This Government are committed to taking tough action against all benefit fraud including Housing Benefit. Significant incentives for local authorities to detect Housing Benefit fraud are already in place. A financial incentive scheme has been in operation since 1993 which rewards local authorities for good performance in detecting benefit fraud. Payments of additional subsidy to local authorities to reward them for their anti-fraud work has risen year on year (£5.9 million in 1993/94 to £65.6 million in 1997/98).
1182WRecent National Audit Office and Audit Commission reports questioned the interpretation of the Subsidy Order by some local authorities when claiming additional subsidy for anti-fraud work. We have therefore made the criteria explicit in the Subsidy Order 1998. To qualify for this additional subsidy authorities must show that benefit was reduced or stopped following investigation by a designated fraud officer. In each case they must show that benefit has been overpaid as a result of fraud or, in a case where benefit has not been put into payment, an attempt was made to claim fraudulently and this was prevented by their action.
The Department is still awaiting comments from the Local Government Association on the draft instructions on claiming weekly benefit savings. When received they will be considered and a reply issued as soon as possible. We have, however, already had the opportunity to consider some of the initial comments made to me by the Local Government Association and, as a result of this, the strengthened criteria for claiming fraud weekly benefit savings will not now be introduced for the 1997/98 financial year but will commence from 1 April 1998.