TREASURY SERVICES SECTION
CHANGES TO HOUSING BENEFIT LEGISLATION
Introduction
The Social Security Administration (Fraud) Act 1997 has been introduced. The purpose of this item is to explain the powers in the Fraud Act relating to Housing Benefit/ Council Tax Benefit and the administration of those benefits. It gives details of the relevant powers and indicates when they will become law. However, many of the powers may not actually be used until, for example, regulations are made or administrative practices are established and agreed.
Supply of Information from Government Departments via the DSS to Local Authorities
From 1 July 1997, new powers allow Government departments to supply information to local authorities, although they do no require it. Therefore, although the powers become law on 1 July, the full powers will not start until procedures are designed, agreed with local authorities, associations and the Government departments involved and implemented.
Terminals Linked to DSS Computer Systems as a Means for DSS to Supply Information to Authorities
Also from 1 July the Act gives the DSS powers to allow it to supply information through the provision of unmanned computer terminals. The installation and use of this facility will depend upon the number of authorities wanting to take up the option, the capacity of the DSS systems to apply additional terminals and the resolution of issues of security of data and funding.
Inspection and Direction
The Act gives the Secretary of State powers to authorise the inspection of a local authority's administration of Housing and Council Tax Benefit and these powers will be exercised by the Benefit Fraud Inspectorate. The Secretary of State will be able to direct a local authority as to the standards to attain in the prevention and detection of fraud relating to Housing and Council Tax Benefit or otherwise in the relation to the administration of those benefits. An authority that does not attain the standards it has been directed to attain may be required to contract out some or all of its benefit administration or forfeit part of its subsidy, or both. Although the powers became law on 1 July, making them available for use, the powers relating to inspections and directions will not be used until the Benefit Fraud Inspectorate starts its inspection programme and reports are sent to the Secretary of State.
Information from Landlords and Agents
Regulations are expected to be in place by October 1997 which will given local authorities more effective powers to combat landlord fraud. The Act requires the Secretary of State to make regulations to permit local authorities or their contractors, in certain circumstances, to require landlords, agents, or anyone acting on behalf of the landlords to supply information to the local authority. The information gathered may only be used in connection with the administration of Housing or Council Tax Benefit and may be disclosed to other authorities.
Appointment of Local Authority Inspectors
The Act provides for the appointment of local authority inspectors with powers to enter business premises, make enquiries and interview persons found on the premises. The Secretary of State may notify authorities as to how many inspectors they may appoint and how they shall be appointed. (Local authorities will be able, for instance, to use the powers to check the records of an employer to verify who is employed and what wages they are paid.) They can also be used to enter a landlord's business premises and check details of tenancies.
This provision commenced on 1 July 1997 and is a permissive provision. Local authorities may appoint inspectors from that date, but are not obliged to do so. The Secretary of State's notifications and guidance will be issued shortly. The notifications are mandatory and any authority appointing inspectors is bound by them. On the question of numbers, the Secretary of State has decided that each local authority may appoint as many inspectors it considers it requires. The notification will specify that inspectors must be appointed by the head of paid service of the authority. This cannot be delegated and the letter of appointment must be signed by that person.
Offence of Dishonest Representation for Obtaining Benefit
The Act allows for the prosecution of cases that cannot currently be prosecuted. It gets round the difficulties in prosecution cases where there is insufficient documentation (for example where payment has been made by bank credit) and also addresses problems identified in a recent Court case which means that sample charges cannot always be used. The commencement date of this part of the Act is 1 July 1997.
Administrative Penalties
The Act gives the facilities for administrative penalties being used to replace prosecution where there is sufficient evidence to justify Court action but where the case is not overwhelmingly suitable for prosecution.
Recovery of Overpayments
The Fraud Act extends local authority powers to recover Housing Benefit overpayments by allowing recovery in respect of other tenants. It also provides that overpayments not recovered by deduction from prescribed benefits may be recovered by execution in the County Court in England and Wales. Due to the need to make regulations this section will not come into force until they are in place in October 1997.
National Insurance Number as a Condition of Entitlement to Benefit
The Act requires that as a condition of entitlement to benefit, the claimant and anyone else included in the claim must supply the information or evidence required to establish a National Insurance Number, together with the information or evidence necessary to establish that any number quoted or traced is applicable to that person. Where a National Insurance Number is not held, Section 19 requires the person to apply for one and to provide the information or evidence necessary for one to be allocated. Before this section will be implemented, there are a number of issues to be considered. At present, the DSS has given no indication as to the likely implementation date.
Redirection of Royal Mail Post and Supply of Information Concerning Redirections
The Act provides that the DSS or a local authority may require Royal Mail or any postal carrier, not to redirect mail where the benefit paying authority has marked the envelope to that effect in a manner approved by the Royal Mail. The mail must then be returned to the sender. it is intended that a pilot will take place to test the procedures. The applicable section will be commenced in a small number of locations to allow the pilot to be run. In the light of the results from the pilot, full national implementation will take place at a later date.
CURRENT BENEFIT PERFORMANCE MEASURES
Average Waiting Time of Personal Customers
A recent survey showed that there was little or no waiting time. On those occasions where a noticeable queue had formed, the waiting time rarely exceeded five minutes, there is averaging less three minutes.
Claim Processing Time
As at Friday 27 June 1997, all completed claims were being processed within one week, compared with our target of 14 days, with the exception of new Council tenant rent rebate claims which is discussed below. As a result of the introduction of the new Simdell Rent System, there is a backlog of 121 new Council tenant claims outstanding in respect of rent rebates. This represents only 2.5% of the Council tenant's claims and the vast majority (4,901) are existing claimants and renewals which are not subject to this delay. As the rents and references have not been available automatically through the interface the requisite information is incomplete. The claims are being progressed as far as possible and as most claims are for both rent rebate and Council Tax, the Council Tax Benefit is being processed. The resolution of the outstanding issues on the Simdell System is being given the highest corporate priority. When the required information becomes available steps will be taken to complete the backlog of claims.
The number of items sent in support of claims which have not been dealt with within two days
As at the close of business on 27 June, there were no items over two days old which had not been dealt with. This means that the target has been met.
Amount of Benefit Saved by Fraud Detection
As at 27 June, the Fraud Section have already detected weekly benefit savings of £155,586, compared with the twelve month target of £241,582 set by the Department of Social Security. We have also identified £35,493 in benefit overpaid which the authority seeks to recover.