The Benefit Fraud Inspectorate (BFI) announced that the latest phase of inspections will concentrate on councils that appear to be doing little to safeguard the Housing Benefit system by taking insufficient action to stop Benefit fraud and remove error.
Chris Bull, the Director of BFI said: "It is important that councils protect taxpayers' money by taking steps to prevent, detect, and deter Housing Benefit and Council Tax Benefit fraud. We have included three councils in this programme that have raised few sanctions. These councils are Caradon District Council, Dumfries and Galloway Council, and North Lanarkshire Council."
Mr Bull said "We have also included two councils in this phase of inspections that have performed poorly against their annual target to review benefit claims which have been identified as at risk of fraud or error by the Department for Work and Pensions. These councils are Herefordshire Council and Renfrewshire Council. A third council, Southampton City Council, have not returned any information to the Department regarding their performance on reviewing claims and they will also be inspected."
Mr Bull added "I am pleased to announce that the planned inspection of Slough Borough Council will not go ahead because the Council has shown significant improvements in their overall performance."
The BFI is an independent unit within the Department for Work and Pensions that reports directly to the Secretary of State for Work and Pensions on the standard of benefit administration and counter-fraud activity.
James Plaskitt, Minister for Housing Benefit and Anti-Fraud, announced the inspection programme in a written ministerial statement.
Chiltern Council confirmed its intentions to pay Housing Benefit direct to tenants from June 2006. The decision, which will not include tenants of the stock transfer Paradigm Housing Association, responds to changes in rules on recovering overpayments. Critics have accused the Council of over-reacting.
A report from the Department for Work And Pensions revealed the Government will not reach its target to cut fraud and error in Housing Benefit. Figures have already risen in 2004/05, despite a target to cut fraud and error in Housing Benefit by 25% in the three years to 2005/06. The report claims the change in the way the baseline figure is calculated is mainly to blame.
Latest statistics show that the number of people whose Housing Benefit is limited by single room rent restrictions has started to rise after a sharp fall in the years after its introduction. Housing Benefit Minister James Plaskitt told Parliament there had already been an increase in the number of people under the age of 25 whose Benefit was capped from 10,650 in May 2003 to just under 12,000 in May 2005.
Over 150 MPs have signed a Parliamentary motion to scrap the rule.
