§ 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 Telford and Wrekin Council was published today and copies of the report have been placed in the Library.
The BFI undertook its first inspection of Telford and Wrekin Council's housing benefits administration and counter-fraud activity during October and December 1998. BFI reported that the authority needed to develop a more secure and accurate benefits administration system and improve the overall quality of its benefits service.
This follow-up inspection considered the progress made by the authority since the first inspection and in particular its implementation of recommendations. BFI commends the progress made by the council in undertaking a major restructuring exercise to bring together the management of Housing Benefit and Council Tax Benefit. This had resulted in clear focus on customer service and processing, replacing IT systems and introducing a system for document image processing.
Recovery of overpayments was identified in the first inspection as the council's weakest area. This follow-up report finds that improvement in identification, classification and recording of overpayments are still needed.
In the first inspection, BFI found problems in the way claimants' residency and identity was verified. This follow-up report finds that the council has made significant improvements in verification, and considers that the council is well placed to implement the Verification Framework.
This report finds that positive steps have been taken to address previous concerns in the areas of IT, post opening and cheque dispatch. In particular, a quality control team has been created to ensure that accuracy checks are made.
This report also finds that counter-fraud efforts have increased significantly since the first inspection with more proactive investigation work. More staff have been deployed and staff training has improved. In addition, the council has introduced a case management system.
In 2000–01, Telford and Wrekin Council administered approximately £38.7 million in housing benefits. This is approximately 21 per cent. of its total gross revenue expenditure.
34WSThe 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.