HC Deb 28 February 2002 vol 380 cc1467-9W
Vernon Coaker

To ask the Secretary of State for Work and Pensions when he will publish the inspection report of the Benefit Fraud Inspectorate in respect of Torbay Borough Council. [40020]

Malcolm Wicks

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

The report identifies both strengths and weaknesses in the benefits services at Torbay. The Council is commended for good customer service. There are three offices that claimants can visit, telephone calls to the office are answered promptly and Torbay is currently revising its claim form in line with the BFI Model Claim Form.

Inspectors found that backlogs of work were not being addressed and the time taken to process claims was very poor with only 45 per cent. being cleared within the 14-day target. These backlogs were also reducing the ability of the council to ensure that renewal claims were being assessed without a break in payment.

The report finds that changes in circumstances which could lead to overpayment of benefit were not given sufficient priority by the benefits section. An experimental scheme for the sharing of information between the council, the Employment Service and the Benefits Agency on changes of clients' circumstances was identified as an excellent initiative.

Inspectors considered there were weaknesses in all stages of dealing with overpayments and the report makes recommendations on tackling this issue. Since 1997 the debt owed to the council has increased by nearly £1 million.

The council's clear progress in developing a counter-fraud strategy, fully supported by members, was also recognised. Its process of verifying of claims for benefit was found to be up to the required standard. The report concludes that the fraud section would benefit from additional resources to build on the effective work that has already been undertaken.

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 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.

Vernon Coaker

To ask the Secretary of State for Work and Pensions when he will publish the inspection report of the Benefit Fraud Inspectorate in respect of the London Borough of Southwark. [40021]

Malcolm Wicks

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

This follow-up inspection and report shows that the council has responded very positively to the findings of the first BFI report of June 1999 and that many recommendations have been implemented in full. Southwark also have ongoing projects to address many of the remaining recommendations. Inspectors found significant improvements in the quality of anti-fraud work and a reduction in the previous weaknesses in benefits administration.

The report commends the work done to improve the verification of claims; on the process of making payments on account; and on procedural guidance for fraud and overpayment staff.

At the time of the second inspection some problems remained to be addressed. These included the use of more than one type of claim form. Since the inspection, however, the council has introduced a new single form based on the BFI Model Claim Form.

Inspectors found that there had been an improvement in the clearance time for claims. In 1999 only 20 per cent. of claims were cleared within the 14-day target. At the second inspection this was found to have improved to 52 per cent. Southwark should do more to ensure that all information is available when claims are first received.

The report also found that the service to customers needed to be improved, in particular long delays for telephone callers. Southwark had recognised this poor level of service and has introduced a new telephone system.

The large backlog of work, which in 1999 stood at 19,000 claims, had been reduced but at the time of the second inspection the council estimated that a backlog of 5,000 claims was outstanding. This is believed to have fallen further but the council did not have a formal plan to clear the remaining arrears.

The report notes that a comprehensive approach was being taken to training. It also recognises that the council has improved the liaison between benefits and fraud as well as with the Housing Department.

Inspectors found that progress against BFI's recommendations in relation to overpayments of benefit had been slow. Further recommendations to improve effectiveness are made in this report.

Significant improvement is noted in the quality of Southwark's fraud investigations. Preparation, record keeping and general file maintenance was found to be of a good standard and this was supported by a high standard of staff training. The 1999 BFI recommendation that the council review its anti-fraud strategy had been successfully implemented.

The London Borough of Southwark is an excellent example of an authority responding positively and effectively to weaknesses identified by the BFI and thus providing a more secure and accurate benefits service to its community.

The report makes recommendations to help the council address the remaining weaknesses and to further improve the administration of Housing Benefit and Council Tax Benefit, as well as 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.