§ Baroness Noakesasked Her Majesty's Government:
Whether they accept the findings of the Audit Commission's report Housing Benefit—the National Perspective in relation to the need to simplify the housing benefit regulations and to improve the funding regime; and, if so, when they will take action. [HL5189]
§ The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Hollis of Heigham)We welcome the Audit Commission's report on housing benefit (HB) administration. Its emphasis on partnership and simplification is very much in tune with our current policy initiatives.
We are determined to work with local authorities to drive up standards of service, tackle fraud and error, reduce barriers to work and tackle social exclusion.
In March last year we established a help team to work in partnership with local authorities to support them in improving the administration of HB. We are already seeing real improvements resulting from the team's work.
21WAIn addition, we have set up a help fund to support local authorities by providing funding for locally-led initiatives to improve the administration of HB. For the financial year 2001–02, a total of £1,637,570 was awarded, which benefited over 200 authorities.
We also want to help more authorities deliver a high standard of HB service by sharing good practice. We have now introduced a dedicated website for local authorities and have also distributed on CD a housing benefit manager's service improvement "toolkit".
In April this year we published for the first time performance standards for the full range of HB administration. These standards provide authorities with a definition of what they should be delivering.
The spending review announced by my right honourable friend the Chancellor of the Exchequer on 15 July includes the biggest investment in HB administration since the scheme began in 1988. Starting with £40 million this year, we are investing an extra £200 million over three years to help local authorities meet the performance standards in delivery of HB.
From April 2003 all local authorities currently complying with the verification framework will receive a 50 per cent increase in their funding allocation for this work. In addition, any authority seeking to become compliant now or in the near future will also receive 50 per cent more than they otherwise would have done.
We will continue to review local authorities core administration subsidy each year and we will fund the set-up and ongoing costs of implementing the changes needed to bring in the new tax credits and the pension credit.