New research published by the Department for Work and Pensions looks at the introduction, implementation, and delivery of the Local Housing Allowance (LHA), as experienced and influenced by those organisations centrally involved in the nine Pathfinder areas over the two-year evaluation period.
The main question addressed in this stream of the evaluation is whether the LHA offers substantial administrative advantages in the delivery of HB in the Pathfinders.
The main findings are:
LHA has been introduced successfully in the nine Pathfinder areas. In particular LAs have been successful in delivering the objective of direct payment. In their efforts in encouraging and assisting claimants to open bank accounts, Pathfinders have achieved greater inclusion of claimants within the financial mainstream.
There have not been significant levels of new types of fraud or higher levels of fraud. Further, there have been only a handful of appeals that have proceeded to the Appeals Service while complaints, queries, and more general requests for clarification of decisions were lower than expected.
There are some administrative advantages to the LHA with easier and faster processing times. There was an 18 day fall in the overall number of days taken to process a claim by the Pathfinders as a group - compared to 16 days in all authorities.
A very clear advantage of the LHA is the clarity and transparency of the regime, making the work of advising claimants easier. The LHA is also seen as fairer. Shortfalls have been reduced and in many cases claimants have become eligible for an excess.
An unanticipated advantage of the LHA is the way in which it can and has been used to assist the homeless.
The few cases of claimant vulnerability are time consuming and resource intensive, although some have welcomed it as an opportunity to become more involved in the social inclusion agenda.
Many Pathfinders attempt to intervene early in cases where arrears are brought to their attention. However this is also viewed as more time consuming under the LHA than was the case before.
Overpayments and their reclaim appear to be an emerging issue in some Pathfinders. Managing bank accounts is becoming increasingly recognised as a problem for at least some claimants.
On balance, the net effect after allowing for setup costs and some specific implementation difficulties is positive, but not considered a 'substantial' advantage to HB administration and delivery.
Local Housing Allowance Evaluation Report 10: Local Housing Allowance Final Evaluation: Implementation and Delivery in the Nine Pathfinder Areas.
Lone parents will get an extra £20 on top of their benefits if they take active steps towards work, under a pilot scheme being rolled out next year. As part of the next stage of the Government's welfare to work strategy, lone parents with children aged 11 and over will be eligible for a Work Related Activity Premium (WRAP), worth £20 a week, if they agree to take the necessary steps to prepare themselves for entering and competing in the workplace. The WRAP will be supported by the introduction of quarterly Work Focused Interviews (WFI) with a personal adviser, where a plan of action is agreed that will help people make that step off benefits and into work.
The new schemes will be introduced from April 2007 in the New Deal Plus for Lone Parents Pilot areas. These include Bradford, Sandwell and Dudley, Leicestershire, North London, South East London, South East Wales and Edinburgh, Lothian and Borders.
A new hard-hitting campaign tells benefit thieves there is no excuse for benefit theft. The No Ifs No Buts campaign warns benefit customers that no excuse will be tolerated if they deliberately hide changes in their circumstances that might affect their benefits.
The campaign will feature television adverts and billboard posters, highlighting the problem of taxpayers' money being stolen by benefit thieves. Last year, benefit thieves received over 52,000 prosecutions, sanctions, and cautions for a range of fraud offences.
Similar campaigns in recent years have helped reduce the amount that benefit thieves stole, from £2 billion in 2001 to around £0.9 billion last year. Investigators are using new powers, such as the right to check bank accounts and household bills, to come down hard on people who cheat the system.
