New estimates published by the Government show that Housing Benefit fraud and error has been cut by about £60 million. Approximately £600 million of Housing Benefit was overpaid from April 2003 to March 2004, which is 4.9% of the total expenditure. In 2002/03 the figure overpaid was around £700 million. These figures are rounded to the nearest £50 million; the actual difference between the two figures is around £60 million.
Anti-Fraud Minister Chris Pond said he was particularly encouraged by the results as they only cover the period up to March 2004, and there have been many improvements in preventing, detecting, and deterring fraud since then. In April 2004, major changes were introduced to the way local authorities tackle fraud in Housing Benefit.
Pond also commented on the effectiveness of the new risk-based system, in detecting fraud and error, compared to the annual renewal system it replaced.
The Benefit Fraud Inspectorate (BFI) published its report on the counter-fraud arrangements of the London Borough of Redbridge, for Housing and Council Tax Benefit.
In 2003/04, the Council administered some £82.1 million in Housing Benefits, which was about 13.5% of its gross revenue expenditure. BFI reviewed the counter-fraud arrangements in place to protect these significant sums at the invitation of the Council.
BFI found that Redbridge LBC gives a high priority to combating benefit fraud, and that the Investigation Team is experienced and sharply focused on deterring fraud. The Team raises a considerable number of sanctions against fraudsters and is well supported by the Council's members and managers. The report did, however, identify concerns regarding the following:
All BFI inspection reports can be found on its website at www.bfi.gov.uk.
