§ 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 Dundee City Council was published today 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 Dundee City Council against the Performance Standards for housing benefits. 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.
However, there had been some improvement since the first inspection report, published in June 1999, and the council's overall level of performance for administering benefits and counter-fraud activities was fair.
At the first inspection, BFI reported that Dundee City Council needed to develop a more effective and secure benefits administration system. The council lacked key safeguarding policies and procedures, and there were significant delays in processing benefit claims.
The follow-up report finds that the council had responded positively to the first inspection introducing 39 (71 per cent.) of 55 major recommendations. However, arrears of work and insufficient staff resources had prevented sustained improvement. Evidence gathering to support benefit claims was generally thorough but the council was failing to adequately protect the gateway to benefits due to processing delays. Performance was significantly below the clearance times required by the Standards. Overpayments were occurring because notified changes of circumstances were not being dealt with promptly.
44WSThe report finds that policies for safeguarding benefits had been introduced and sanctions were used to punish and deter benefits fraudsters. Recovery of housing benefits overpayments had improved markedly since the first inspection.
In 2002–03, Dundee City Council administered some£70 million in housing benefits, about 14 per cent. of its total gross revenue expenditure.
The report makes recommendations to help the council address 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 BFI's findings and recommendations.