To present the report of the Director of Function (Resources)/Section 151 Officer.
Minutes:
The report of the Director of Function (Resources)/Section 151 Officer seeking the Committee’s comments on a proposed Risk Based Verification Policy was presented. The report set out how the risk groups were determined for the proposed Policy; its expected savings/benefits and how the policy would be implemented and monitored.
The Benefits Manager reported that currently the Benefit Service undertakes the same level of verification for all cases. This is the basic level of checks as stipulated by the now redundant DWP verification framework. As this is labour intensive, it makes it more difficult to give extra focus and limits the ability to review cases where the risk of fraud/error is highest. Although the DWP has allowed authorities the discretion to implement their own risk based verification processes since 2011, the Authority has not undertaken to do so until now. A review of processes and the reduction in Housing Benefit cases has resulted in this being considered again to see if it’s being done in the most effective way.
For the purpose of assisting to establish which category of claimants has the greater risk of change an analysis was made of all claimant error overpayment cases calculated in June, 2019 which considered the reasons for the overpayments as well as the profile of the claimant’s situation. An analysis of claims received in March and April 2019 was also undertaken to ascertain which risk group these would fall into. The report sets out the findings of those analyses including the elements of claims that were considered in order to determine the risk group. The impact on the service was assessed and is summarised in the report. In addition, an Equality Impact Assessment was undertaken to see whether the impact of the proposed change in approach will be greater for particular groups of claimants.
The Committee discussed the report and in considering the objectives of the new policy in seeking to concentrate resources on those cases where discrepancies/errors are likely to occur i.e. those falling into the high risk category, it expressed some reservations regarding the methodology adopted in relation to the elements of claims considered and it highlighted in particular potential difficulties with the age group analysis and the way in which age range had been determined which it believed could result in an inaccurate risk profile thereby biasing the conclusion reached towards a particular age group .The Committee suggested that the Officers might wish to reflect on this component of the policy before presenting it to the Executive for approval; the Committee further recommended that in the early stages of the policy’s implementation a random sampling of cases from across age groups, earnings and family composition be undertaken in order to test and verify the assumptions made.
It was resolved to note the proposed Housing Benefit/Council Tax Reduction Risk Based Verification Policy with the recommendations –
• That the age range within the age groups be reconsidered;
• That random sampling on the lines suggested be undertaken once the policy is implemented.