Agenda item

(Finance Portfolio Holder) To consider the attached report (C043-2014/15).

(1)        That the new national arrangements for investigating housing benefit fraud under the Single Fraud Investigation Service be noted; and

(2)        That the revised structure for the Benefits Division, as set out at Appendix 2 of the report, be approved.

The Finance Portfolio Holder presented a report on the proposed restructure of the Benefits Division.

The Portfolio Holder reminded the Cabinet that, as part of the Welfare Reform Act 2012, the responsibility for Housing Benefit fraud investigation would be transferring from local authorities to the Single Fraud Investigation Service within the Department of Work & Pensions. Although it had taken four years since the original announcement, it was known that this function within Epping Forest District Council would transfer on 1 October 2015. However, it was only the Housing Benefit Fraud Investigation function that would be transferred; responsibility for Local Council Tax Support fraud investigation would remain with the District Council.

The Portfolio Holder stated that, in addition to investigating Housing Benefit fraud and Local Council Tax Support fraud, the current Benefit Investigation team also assisted in non-benefit related corporate fraud investigations, working with both Internal Audit and the Housing Tenancy Fraud Officers. A dedicated Corporate Fraud team was now being set up and was the subject of a further report to Cabinet. The Corporate Fraud team would however be investigating Local Council Tax Support fraud.

The Portfolio Holder reported that the transfer of Housing Benefit fraud investigation to the Single Fraud Investigation Service, and the creation of the Corporate Fraud team had necessitated a reorganisation of the current structure of the Benefits Division. The current Benefit Investigation team had all been put into scope to transfer to the Department for Work and Pensions from 1 October 2015 but the transfer of this function from the Council had also created a new liaison function which would need to be resourced. There would be the opportunity for at least some of the current Investigation Officers to either work in the Corporate Fraud team or to remain within the Benefits Division in a compliance or liaison role. The revised structure would achieve potential full year savings of £134,030 in the Benefits Division.

The Cabinet welcomed the report as it was important to ensure that benefits were received by the rightful recipients. The Portfolio Holder confirmed that the proposed structure would be reviewed in 2015/16.

Decision:

(1)        That the new national arrangements for investigating housing benefit fraud under the Single Fraud Investigation Service be noted; and

(2)        That the revised structure for the Benefits Division, as set out at Appendix 2 of the report, be approved.

Reasons for Decision:

The main purpose of the Benefit Investigation team was to investigate Housing Benefit fraud and Local Council Tax Support fraud. As both of these functions were to be transferred to the Single Fraud Investigation Service and Corporate Fraud, the structure of the Benefits Division needed to be reviewed.

Other Options Considered and Rejected:

To do nothing. However, if the Benefits Division was not restructured, there would not be a management structure for some of the Benefit staff, the Council could lose income from failing to protect the tax base, and there would be no resource available to assist the Single Fraud Investigation Service with the investigation of Housing Benefit fraud, resulting in a loss to the public purse.