Decision details

The report of the Director of Function (Resources)/Section 151 Officer seeking the Executive’s support for the introduction of a risk based verification process for the administration of Housing Benefits and Council Tax Reduction was presented.

The Portfolio Member for Finance reported that currently the Benefit Section undertakes the same level of verification in all cases which is the basic level of checks as stipulated by the now redundant Department for Work and Pensions (DWP). As this is labour intensive it makes it more difficult to give extra focus and ability to review cases where the risk of fraud/error is highest. Whilst the DWP has allowed authorities the discretion to implement their own risk based verification processes since 2011, it is not something the Authority has wished to undertake until now. A recent review of processes which has been accompanied by a reduction in Housing Benefit cases has resulted in risk based verification being considered once more. The Benefit Section has also undertaken a review to establish whether processes were being undertaken in the most effective way. The Benefit Section undertook a risk analysis of sample claims over a period which identified categories of claimant where there was a greater risk of changes resulting in claimant error overpayment. The report at Appendix B details the methodology used and the findings therefrom. An Equality Impact Assessment has also been undertaken and is shown in Appendix C to the report.

The Director of Function (Resources)/Section 151 Officer confirmed that the proposal to introduce a risk based verification policy was considered by the Audit and Government Committee at its December, 2019 meeting and the comments made are reflected in the report, policy and methodology. The Officer clarified that as Universal Credit is implemented and the DWP’s grant reduces the Council is seeking to make better use of the remaining resources by concentrating attention on those cases deemed to be at high risk of involving fraud or error. However, the policy will have to be kept under review to ensure it remains effective and that the classification of risk groups remains valid.

In response to questions by the Executive about other authorities’ practices, systems capability, staff training and impact in terms of claims processing times,  the Director of Function (Resources)/Section 151 Officer clarified that a number of authorities have now adopted a risk verification process;  the Northgate IT system currently used by the Authority includes a provision that can be used  for this purpose and notwithstanding that Benefits staff undertake regular training as a matter of course, a programme of training will be undertaken in preparation for the implementation of the policy. The aim is to see a reduction in the number of documents handled, and improved administration and processing times.

The Executive confirmed that it would wish the Audit and Governance Committee to review the policy.

It was resolved –

•           To note and endorse the proposal for the Benefits Section to introduce a risk based verification process for the administration of Housing Benefit and Council Tax Reduction.

•           To approve the Risk Based Verification Policy as detailed in Appendix A to the report and to note that the Audit and Governance Committee will review the policy annually.

•           To instruct the Director of Function (Resources)/Section 151 Officer to ensure that the necessary arrangements are made for the introduction of risk based verification in accordance with an agreed timetable.