HC Deb 30 January 2003 vol 398 cc46-7WS
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 Dover District Council was published today and copies of the report have been placed in the Library. This report finds that Dover District Council has some commendable performance while some areas are very poor.

The report identifies the positive aspects as a benefits claim form that complies with the BFI model claim form, achievement of good results from a customer survey, and Verification Framework compliance in most areas. Dover needs to: run benefit take-up campaigns; verify residency more vigorously and income in renewal claims; carry out visits to Verification Framework requirements; apply benefit periods in accordance with risk and apply the fit and proper person test before making payments to landlords.

Speed of processing is a distinct weakness, with only 25 per cent of claims sampled being processed within targets. Breaks in payments were found in 23 per cent of renewals sampled.

There were significant problems with all aspects of the overpayments regime. The council is undertaking a fundamental review of the overpayments service, which is to be completed and implemented by March 2003.

The report finds that the counter-fraud area gave the greatest concern. The council's investigators were poorly trained, and were overloaded with referrals, many of which were of spurious value. Sanctions were inadequate. The report also finds evidence of failure to comply with the laws governing investigation techniques.

In 2000–01, Dover District Council administered approximately £27 million in housing benefits. This is approximately 40 per cent. of its total gross revenue expenditure.

The 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.