HC Deb 23 January 2003 vol 398 cc17-8WS
The Parliamentary Under-Secretary of State for Work and Pensions (Malcolm Wicks)

On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the Benefit Fraud Inspectorate (BFI) inspection report on the London Borough of Hammersmith and Fulham council was published today and copies of the report have been placed in the Library.

This report finds that, while having some significant challenges ahead, the council is well placed to develop its benefits administration and counter-fraud performance into that of a high achieving authority.

The BFI was impressed by the clear focus shown by the benefit service management team. The council had or was addressing a range of significant problems.

The report finds weaknesses in the council's claim forms and in the way the evidence to support claims is verified. Both these issues require urgent attention by the council.

Some progress is being made in improving overpayments recovery but there are some problems in overpayment calculation and classification. Supervisory checks were found to be poor and management information flawed. A high number of old housing benefit and council tax benefit overpayments had not been recovered.

The report notes the good performance of the counter-fraud benefit investigation team. A large number of benefit fraud prosecutions had been undertaken, cautions issued and administrative penalties offered. A thorough case-review process had helped to ensure that the quality of investigations remained high.

In 2000–01, the London Borough of Hammersmith and Fulham council paid out £86.8 million in housing benefits. This is approximately 32 per. cent of its gross revenue.

The report makes recommendations to help the council address the remaining weaknesses and to improve further 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.