HL Deb 27 November 2001 vol 629 cc27-8WA
Lord Hughes of Woodside

asked Her Majesty's Government:

When they expect to publish the inspection report of the Benefit Fraud Inspectorate in respect of Hastings Borough Council. [HL1641]

The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Hollis of Heigham)

The Benefit Fraud Inspectorate report was published today in respect of Hastings Borough Council and copies of the report have been placed in the Library.

Inspectors found that the council is working towards the verification framework but needs to improve consistency in gathering evidence before they will be able to implement the framework effectively. The report also noted that Hastings Borough Council did not consistently comply with the requirement to confirm national insurance numbers and the linked identity of claimants.

The council's efforts to ensure that only valid claims enter the system are hampered by a claim form that does not meet the standards of the BFI model form.

The report notes that before the inspection took place the council implemented major organisational changes. The benefits section introduced new procedures and initiatives that should bring improvements, but insufficient staff resources meant that the gains have yet to be fully realised.

Inspectors report that the council pays 90 per cent of rent allowance claims to landlords direct. The council recognises the benefits of maintaining close liaison with landlords, supported by clear procedures for the 'fit and proper person' test. Further improvement is needed in the areas of IT security and management checks.

The report finds that the council has effective systems for recovering housing benefit (HB) overpayments. The general lack of resource is having a major impact on the performance of the Benefits Investigation Service causing a shortfall against the weekly benefit saving threshold. Internal Audit's provision of a robust and effective audit service gives some assurance as to the security of the benefits system.

The report makes recommendations to help the council to address weaknesses and to improve the administration of housing benefit and council tax benefit; as well as counter fraud activities.

My right honourable 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.