§ Dr. StoateTo ask the Secretary of State for Work and Pensions when he will publish the inspection report of the Benefit Fraud Inspectorate in respect of Derby city council. [57615]
§ Malcolm WicksThe Benefit Fraud Inspectorate's report on Derby city council was published today and copies of the report have been placed in the Library.
The report finds that there are inconsistencies in the way that Derby city council administers benefit. On the one hand, the council gives a high priority to promoting and paying benefit and is commended for these activities. However, local authorities also have a duty to safeguard their activities against fraud, irregularity and corrupt practices. At Derby, BFI finds that the council has neglected counter fraud activity, detecting error and recovering overpaid benefit.
The BFI commends the council for its work on benefits take-up and social policies which support the high level of importance that elected members give to promoting and paying benefit and to providing a high quality customer 857W service. However, the BFI is extremely concerned that this has been prioritised to the detriment of other responsibilities. Inspectors found the council has created an environment where benefits, overpayments and counter fraud sections have been hindered from focusing on reducing fraud and error.
Management checking was abandoned in August 1999 due to IT problems and as a result there is no assurance on the security on access to benefits.
The report finds that the council has carried out counter fraud activities simply to achieve Weekly Benefits Savings targets, with little commitment to reducing, deterring or eradicating fraud and error. The fraud team has been managed on a part-time basis since September 2000 and little effort has been made to prosecute fraudsters.
The report makes a great number of recommendations to the council to help to raise the standard of both benefits administration and counter fraud work.