§ The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond)On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the Benefit Fraud Inspectorate (BFI) inspection report on East Renfrewshire Council was published on 21 August 2003 and copies of the report have been placed in the Library.
Following the housing Green Paper "Quality and Choice: A Decent Home for All", published in April 2000, the Department for Work and Pensions developed a performance framework for housing benefits. The performance standards for housing benefits allow local authorities to make a comprehensive self-assessment of whether they deliver benefit effectively and securely. They are the standards that the Department for Work and Pensions expects local authorities to aspire to and achieve in time.
The BFI inspected East Renfrewshire Council against the Performance Standards. The report finds that the council is not at standard for any of the seven functional areas of the Performance Standards—strategic management, customer services, processing of claims, working with landlords, internal security, counter-fraud, and overpayments.
The BFI found evidence of the council's commitment to improving its benefit administration as it had provided additional resources. Responsibilities for Housing Benefit and Council Tax Benefit administration and counter-fraud transferred to the Finance Department in 1998, when the full-time equivalent number of staff increased from 11 to 17. The council planned to increase this again by a further two staff in May 2003.
However, this increased commitment needs to be directed by a clear vision for the benefits service supported by a broad range of formal policies and clearly communicated performance targets.
The council also needs to undertake routine performance monitoring and regular reporting of performance results to senior managers and elected members to assure them that performance complies with regulations.
Such arrangements should help bring about required improvements in the quality of fraud investigations much needed management assurance from regularly performed management checks, and ensure that systems are adequately safeguarded. When completed, the council will be in a better position to progress to standard in all seven functional areas of the performance standards, particularly in the area of overpayments.
20WSIn 2001–02, East Renfrewshire Council administered some £11.7 million in housing benefits, about 7.6 per cent. of its total gross revenue expenditure.
The report makes recommendations to help the council address weaknesses and to 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 BFI's findings and recommendations.