§ 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) follow-up inspection report on the London Borough of Harrow Council was published on 19 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 the London Borough of Harrow Council against the performance standards to assess progress since the first BFI inspection report, published in September 2000.
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 council had fully implemented 31 and partially implemented a further 22 of the 67 recommendations made by the BFI in the first inspection report. The council's failure to implement 11 recommendations on counter-fraud contributed to poor quality investigations and the incorrect use of sanctions.
Verification of benefit claims was strong. However, the backlog of claims outstanding had not decreased since the first inspection, with over 5,800 cases outstanding.
The average time taken to process a new claim for benefit was 78 days and only 47 per cent. of renewal claims were processed on time. There were also delays in dealing with changes of circumstances and appeals. The level of management checks was insufficient.
Customers experienced difficulties in contacting the council's benefits service with telephones and reception closed one day each week, and 43 per cent. of telephone calls made by customers were going unanswered.
21WSThe report identifies some good practices, for example in the training of staff, working relationships with registered social landlords, and document management. In 2001–02, the London Borough of Harrow Council administered some £60.6 million in housing benefits, about 16 per cent. of its total gross revenue expenditure.
The report makes recommendations to help the council address weaknesses and further 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.