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Benefit Fraud Inspectorate (Falkirk Council)

On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the BFI inspection report on Falkirk Council was published today and copies have been placed in the Library. In 2004–05 Falkirk council administered some £37.7 million in housing benefits, about 10 per cent. of its gross revenue expenditure. The inspection focused on the council's counter-fraud arrangements, as it reported to the Department that it had not applied any sanctions between April 2003 and March 2005. BFI found that the council had strengths in its processes to limit the opportunities for fraud and error to enter the benefit system. In particular, claims were consistently verified to the standard of the Department's verification framework and effective arrangements were in place to carry out claim reviews and data matches. However, while the council had a prosecution policy, the inspection found that it did not apply it in practice. Its failure to administer any form of counter-fraud sanction had undermined the council's ability to create an anti-fraud culture and send a clear message to benefit fraudsters. The inspection also revealed that the council lacked key management controls over its counter-fraud activities. Its investigation work and file management were ineffective and there was a need to improve the monitoring of performance and analysis of casework within the fraud team. Falkirk council has acknowledged its shortcomings in this area and there is a commitment to improve performance, which includes developing an action plan to address the recommendations made in BFI's report. My right hon. Friend the Secretary of State is now considering the report and may ask the council for its proposals in response to the BFI's findings