Agenda item

The Committee considered the report of the Benefit Fraud Manager summarising the performance of the Mid-Kent Benefit Fraud Shared Service during 2014/15 and outlining the current format of the Shared Service and the impending changes arising from the incorporation of the three partner authorities into the Single Fraud Investigation Service on 16 March 2016.  In response to questions by Members, the Benefit Fraud Manager explained that:

·  In terms of trends in benefit fraud, the figures were similar year on year.  According to the Audit Commission report “Protecting the Public Purse”, approximately 4% of activity within the benefits system was fraudulent.  To mitigate the risk of over payments and to help prevent fraud entering the system, fraud awareness training was arranged for staff and there was a verification system in place.

·  The Council had robust procedures to recover overpayments due to fraud and error (official and claimant) and in 2014/15 the recovery rate was 67%.  However, fraudulent overpayments were far harder to recover than overpayments caused by errors in the system, and in certain circumstances, overpayments might be written off.

·  It was necessary to strike a balance between the resources allocated to tackling fraud and the amount of fraud detected i.e. the return on investment.

·  With effect from 16 March 2016, responsibility for investigating allegations of benefit fraud would transfer to the Department for Work and Pensions (DWP).  The Council would still be responsible for the management of housing benefit claims until Universal Credit was further expanded to encompass all claims and the Council would still have a responsibility to reduce fraud and error entering the system.  It would also be the responsibility of the Council to manage and investigate Council Tax Support cases and all discounts and exemptions in relation to these cases and Non-Domestic Rates.

·  A report was being prepared on the financial viability of retaining a fraud investigation service for the three partner authorities in future.  As the majority of any Council Tax savings were paid to Kent County Council, an application for funding for the retention of staff had been made to the County Council, and the outcome was awaited.

·  The Council had a duty to recover benefit overpayments, and this might be by way of a weekly claw-back from future benefit payments or an attachment of earnings order.  The Council might also decide to take criminal proceedings in respect of fraudulent overpayments whilst having regard to the financial implications.  Cautions might be offered as an alternative to prosecutions in certain cases.

·  The cost of the Benefit Fraud Shared Service recharged to the Council for the year 2014/15 was £101k (of a total of £310k), based on last year’s caseload.

·  It was understood that the rights of any staff transferring to the DWP would be protected for at least the next three years.  Transferring staff would join the Civil Service Pension Scheme and would be given the option of transferring their previous pension service into the Civil Service Pension Scheme or leaving it with their current scheme until they were entitled to receive pension payments.

RESOLVED:  That the performance of the Mid-Kent Benefit Fraud Shared Service during 2014/15, the current format of the Shared Service and the impending changes arising from the incorporation of the three partner authorities into the Single Fraud Investigation Service on 16 March 2016 be noted.