§ The Parliamentary Under-Secretary of State for Work and Pensions (Malcolm Wicks)The Benefit Fraud Inspectorate's (BFI) inspection report on Caerphilly County Borough Council was published today and copies of the report in English and Welsh have been placed in the Library.
The report finds that Caerphilly County Borough Council does not have an up-to-date corporate document that sets out the aims and objectives for the benefit, service.
54WSThe council placed an emphasis on paying benefit quickly and the achievement of this compromised the aims of getting payments right first time and deterring fraud. From its sample, the report finds that 100 per cent of Rent Rebate and Council Tax Benefit, and 84 per cent of Rent Allowance claims were processed within 14 days of all information being available. The council had no backlogs of work to hinder the claims processing times. However, the council failed to routinely verify information and evidence in support of claims. Security was not an integral part of the administration of Housing Benefit and Council Tax Benefit. Caerphilly County Borough Council had not implemented the Verification Framework and had no plans to do so. From its sample, the report finds that the quality of verification was poor compared to the Verification Framework benchmark and that the gateway to the benefits system was weak.
The report finds that the council effectively administered renewal claims and ensured continuity of benefit payments to claimants. However, over 1,000 claims were not renewed in 2000/01 and the council took limited action to establish the reasons.
The council dealt with changes of circumstances promptly, pursued overpayments of benefit vigorously and had an effective rate of recovery. The council made use of legal action and debt collection agencies to recover debt where other recovery options had failed.
The council investigated benefit fraud and had completed successful prosecutions. However, there was some scope for improvement in working with other organisations and in the quality and speed of investigations.
Management reporting and risk analysis also needed improvement, as the lack of reliable management information and risk analysis impacted on the council's ability to effectively manage its benefit service and counter fraud activity.
In 2000/01, Caerphilly County Borough Council administered approximately* £39.5 million in housing benefits.
My Rt 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.