The BFI Mission is:
"To maximise counter-fraud performance and minimise the risk of fraud throughout the social security system"

The BFI

The Benefit Fraud Inspectorate is a part of the Department of Social Security. We are based across four sites: Harrogate, which is home to our headquarters; Edinburgh; London; and Newcastle. We report to the Secretary of State on the administration of social security across both central government agencies and local authorities, with a particular emphasis on standards of counter-fraud and security performance. This involves us carrying out inspections of administration and counter-fraud activities within these organisations, reporting our findings, making recommendations for improvements and identifying good practices that should be shared.

The Legislation

The Secretary of State needs no special statutory powers to carry out inspections of DSS agencies or to ensure that swift remedial action is taken to remedy any failings revealed. To carry out inspections of local authorities, legislation was enacted in order to ensure that the new inspectorate would have the right access to all the information and documents necessary to carry out effective inspections. A specific framework of powers ensured that BFI’s operations would be firmly based on a clear public understanding of its role and the extent of its powers outside the Department. On the basis of BFI reports, the Secretary of State may direct that certain standards are to be achieved. The Social Security Administration (Fraud) Act 1997 provided the required legislation which was formally commenced on 1 July 1997.

"I was attracted by the increased scope and responsibilities of my role as an Inspection Manager. My initial impression of life in the BFI is that it is a very fast moving, fluid environment – no two days are the same. You certainly never get bored" (Mark Jenkin, Inspection Manager, BFI London)

Our relationship with the Department of Social Security

An important element of our work over the last year has been close liaison with the Department to develop an operational framework which defines the way we operate. This is shown at appendix 1. Developing the framework has been a challenge for all involved given the newness of the organisation and importance of independence to enable us to report critically, but fairly, on those we inspect. Our independence must also be balanced with the need to work in close partnership with the Department to ensure that standards of administration are raised.

The Department of Social Security has been supportive in the way it has handled this experience. A similarly positive response has been received from local authorities and the DSS agency Chief Executives who have embraced the potentially "uncomfortable" remit of the BFI with similar openness.

Our role is to:

  • inspect in depth those administering social security;
  • collect sufficient relevant and reliable data;
  • analyse the data;
  • draw objective conclusions;
  • make forward looking recommendations;
  • promote good practice; and
  • publish objective, value-adding reports.

Our success will be measured by

  • the improvements that are made as a direct result of our inspections, not by the number of recommendations we make or the number of problems we identify;
  • increased security in the social security system generally; and
  • a reduction in the losses occurring in benefit expenditure.

If administrators do not make the improvements needed, then clearly we are not fulfilling our role. This is a bold statement but one that we as an Inspectorate must be, and are, willing to stand by.

To fulfil our remit we need:

  • an effective partnership with those we inspect and their commitment to implementing recommendations for improvements unless there are compelling reasons for not doing so;
  • objective reporting of our findings – warts and all;
  • partnership with others who inspect;
  • the authority and resources to investigate fully standards of performance;
  • independence to report objectively and fairly; and
  • the respect of policy makers, who have a key role in shaping social security counter-fraud and security strategies.

Adding value

BFI must add value. We achieve this because:

  • our approach to inspection is broad. We look at all aspects of administration. This gives us a deep insight into administrators’ way of doing business and their achievement against fraud;
  • we believe in the phrase "the devil is in the detail", and we will get right into benefit processing where we believe that this will materially add to our findings;
  • we are uniquely able to evaluate performance across organisational boundaries. A clear lesson of our early inspection activities is the importance of interfaces between business units. Communicating inside a business unit can be fraught with barriers; working across business units creates yet another hurdle which can compromise the fight against fraud;
  • we can contribute to future policy, operational and IT systems development in the light of our findings on the ground;
  • we have talented staff. The breadth of skill, knowledge and experience that our people possess is vital to BFI’s ability to assess performance;
  • we look forward. We do not simply identify problems with the way social security is administered. We work in partnership with those inspected to develop workable solutions. This is crucial to improved performance.

Our people and culture

Ministers’ vision of an active modern service that works for the customer and against the fraudster will only be realised by high calibre staff. We attach great importance to our people and their development and are ensuring that every member of the organisation maintains a personal development plan. We are also investing specifically in the development of IT skills to ensure that our staff can make best use of today’s and tomorrow’s technology.

"I applied to work for the BFI mainly due to the fact that it was a new organisation with a reputation for being forward thinking and committed to quality. From an inside view I can now see that my initial opinion was correct and I am proud to be part of an organisation whose staff are enthusiastic, positive and committed to their work" (Jules Jackson, Business Support, BFI Newcastle)

We recognise the sensitive nature of the work that we do and in our efforts to get the "right" people for the organisation we have introduced recruitment vetting procedures. In this way we can increase our assurance of the integrity of our staff who inspect social security administration and counter-fraud activity.

We have, to date, recruited around 100 inspection and support staff with backgrounds in: DSS and its agencies; local authorities; the National Audit Office; the Audit and Accounts Commission; academia; the law; operational research; and the private sector. We have achieved a good mix of generalists and specialists. Such diversity is a real strength and essential to our business. But it also presented us with a challenge in becoming a fully effective organisation. Our values have therefore had a crucial role to play in defining and establishing the culture we wish to advance.

External experts

There will be times when we need to supplement our skills or knowledge to tackle specific issues. We have already worked with experts in the private sector – for example, in developing our methodology for inspection – and with academics in the counter-fraud arena. We will continue to draw on these sources when necessary and ensure that our own skills and knowledge are constantly developed and improved.

Quality and Benchmarking

We are committed to driving up standards. This applies as much to the BFI as an organisation as it does to those we are here to inspect. We have adopted the principles of the European Foundation for Quality Management (EFQM) as a vehicle for continuous improvement using the Business Excellence Model. To this end we are developing an internal quality assurance process for all of our inspection work and introducing a rigorous benchmarking strategy involving both public and private sectors to identify best practice. We are grateful to the Department of Trade and Industry (DTI) who have helped with this process.

"When I left Local Government and joined BFI I considered it to be an organisation which actively showed its commitment to improve the standards of benefit administration throughout the whole of the social security system. I felt that the BFI clearly wanted to work with local authorities and other interested parties. As an ex-local authority benefits manager, an opportunity to bring national and local issues to the attention of those who had the power to remedy them was too good to miss" (Debra Davies, Inspection Analyst, BFI London)

Information collection and technology

Our Central Data Unit collects information from internal and external sources. This helps us build up a library of good practices and benchmarks that support and inform our inspectors and that can be shared with other practitioners.

Since the set-up of the BFI we have developed customised software to support inspections. Further IT developments include establishing close links with other bodies who have a stake in counter-fraud activity with the primary objective of sharing information, where appropriate, to ensure better use of all available information to combat benefit fraud.

"Academics value their independence. It is both refreshing and encouraging that the BFI are willing to engage on these terms not in an attempt to compromise my role but to harness it. That working relationship has been both useful and exciting and has clearly proved its value" (Dr Roy Sainsbury, Social Policy and Research Unit, University of York)


 

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