---

Benefit Fraud Inspectorate Report on Allerdale Borough Council

On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the Benefit Fraud Inspectorate (BFI) inspection report on Allerdale borough council was published on 22 September 2005 and is available in the Library. In 2003–04, Allerdale borough council administered some £22 million in housing benefits, about 36 per cent. of its gross revenue expenditure. Overall, the inspection found that Allerdale borough council was performing to a good standard. However, the report raises concerns about significant areas of weakness in claims administration, overpayments and resource management. Allerdale borough council took 46 days to process new claims for housing benefits in 2004–05 against the DWP standard of 36 days. Inefficient practices were creating unnecessary delays at each stage of the claims process and the council was failing to ensure that the evidence provided by its customers met the requirements of the verification framework. The percentage of claims decided within 14 days of receiving all information and the time taken to process changes of circumstances had both deteriorated during 2004–05. There had been a significant increase in the volume of overpayments identified, and a decline in overpayment recovery performance. BFI concluded that a lack of strategic direction and accountability, inconsistent practices and inadequate levels of assurance had led to major failings within overpayments. An anti-fraud policy and strategy document supported by a business plan and realistic operational targets had been set for the Fraud Investigation Unit. An analysis of selected fraud files showed that the standard of investigation work was good in most cases. My right hon. Friend the Secretary of State is considering the report and may ask the council for proposals in response to BFI's findings.