Section: Benefits & Grants

Hastings Improves Measures to Tackle Fraud

A report from the Benefit Fraud Inspectorate (BFI) found weaknesses in procedures at Hastings Borough Council. The Council has responded by introducing a number of counter-fraud measures and has allocated more resources for further actions next year.

A Council spokesperson confirmed that the BFI report noted weaknesses in a number of areas and that action has been taken to promptly correct matters. Already, the Council has implemented ten separate recommendations to improve procedures. It has also developed an action plan to deal with the other areas the BFI highlighted and allocated resources for an additional Investigator.

The report deals with the Council's response to benefit fraud and is no reflection on the Council's paying of benefits. Hastings Borough Council handles over 11,000 individual claims for Housing and Council Tax Benefit each year. Last year it paid out £39 million in Housing Benefit. The council spokesperson said: "We make every effort to ensure those entitled to benefit get their payment as quickly and accurately as we can. We are very pleased that the average time taken by the Council to assess and start paying Housing Benefit is coming down and that the Council's satisfaction rating with claimants is going up."

BFI Update

In a statement to the House of Commons, Minister for Work and Pensions James Plaskitt announced that the six slowest councils as regards the processing of claims for Housing Benefit are to be inspected by the Benefit Fraud Inspectorate (BFI). These are:

Two further councils will be inspected for failing to show adequate progress in tackling benefit fraud: South Lanarkshire Council and West Lothian Council.

Boost to Social Fund Announced

Changes to the Social Fund, which will allow people on low incomes to access affordable loans more easily, were announced.

The Social Fund provides a safety net for millions of people to help them cope with large or unexpected expenditure. It offers interest free loans and grants. From 3 April, the rules for determining how much can be borrowed were simplified. The amounts applicants can borrow have been increased, while repayment rates have been reduced, giving people longer to repay their loans.

Minister for Work and Pensions, James Plaskitt, said: "Overall this is a significant package of changes, which will make loans more affordable and easier to access for those in greatest need. The aim is to ensure that when people are in dire financial situations they have somewhere they can turn without having to resort to alternative high cost lenders. I am also pleased to announce an increase to the national discretionary Community Care Grants budget for the seventh year running, to £141 million."

Mr Plaskitt announced a boost to the discretionary Social Fund loans budget for the year 2006/07 of £120 million, part of a package which will see a total increase of £210 million over the next three years.

From 3 April there will be a gross national loans budget of £700 million.

Information Notes

The Social Fund is a system of grants, loans, and payments to help people meet necessary expenses that are hard to pay for out of regular income. It provides different types of help depending on the different circumstances people are in, but most are only available to those on specified qualifying benefits.

It is comprised of two parts: regulated and discretionary. Payments from the regulated scheme are dependent on fulfillment of specific conditions set out in regulations. All claimants for a payment from the regulated scheme have a right of appeal to an independent tribunal.

Payments from the discretionary scheme are to help with expenses that are difficult to meet out of regular income. There is no automatic right or entitlement to an award.

KeyFacts

Housing Monthly Diary



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Reporting on March 2006

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