Section 5:
Minor recommendations
Benefit administration
Claim form
5.1 We identified deficiencies in the current claim form, particularly with regard to collecting information from claimants. The administrative re-work necessary to capture data on claims, and the cost to Tower Hamlets, could be reduced by improving the present claim form.
5.2 We appreciate that Tower Hamlets and BA are working together on this to ensure that any changes to the form reflect changes brought about by verification work done by BA as well as Tower Hamlets.
5.3 Tower Hamlets is considering redesigning the current claim form. We consider that changing the form to fully comply with the legislative and Plain English requirements set out in Appendix C could be contained within this exercise at no extra cost.
5.4 We also recommend that the issue of claim forms is given more attention. For example, Tower Hamlets shows good practice in some of its offices by only issuing forms on request, and by keeping a note of those issued.
Post opening
5.5 We have identified the problems with the current post opening regime in Tower Hamlets and the possible risk that it creates from internal fraud.
5.6 We recommend that Tower Hamlets reviews the current post opening arrangements to ensure that they are secure and are consistent. At present Tower Hamlets is open to internal fraud or complaints by claimants that valuable documents are mislaid. BFI’s good practice guide includes guidance on secure post opening.
Informing the claimant
5.7 In general Tower Hamlets appeals procedures are well run, but it should make greater use of written statements rather than moving directly to internal review.
5.8 Carrying out a full review of the claim will necessitate greater involvement by processing staff. In our sampling of internal reviews we identified 7% where a written statement was required. If Tower Hamlets had provided written statements this would have meant fewer internal reviews and reduced administration costs.
5.9 Tower Hamlets needs to revise its notices of determination to ensure that claimants are fully aware of their legal responsibilities. In particular, it can ensure that any information that the claimant must take note of should be written before the authority’s signature. We consider that apart from the initial redesign of the form this change can be made at nil cost to Tower Hamlets.
5.10 We recommend that Tower Hamlets analyses internal review and Review Board decisions to improve staff performance and benefit administration.
5.11 The analysis of Review Board decisions should be used to look for reasons why boards were not held within the 6 week period required by law.
Housing associations
5.12 Tower Hamlets should consider introducing a standard briefing pack for all landlords. The National Audit Office and the Audit Commission's study Measures to Combat Housing Benefit Fraud estimated that for every £8 HB paid out to landlords, approximately £1 was obtained fraudulently. The benefits of a good working relationship with landlords would include:
- increasing the legitimate take-up of benefit
- reducing overpayments by issuing reminder notices to landlords, particularly HAs, of their duty to notify changes of circumstances. Tower Hamlets is currently owed £0.250 million by HAs
- reducing unnecessary enquiries that incur administrative costs
- obtaining quality data upon which to base decisions where the landlord is not considered to be a "fit and proper person".
5.13 We estimate that the cost of producing the pack would be in the region of £5,000 (50 HAs at a cost of £100 per pack for printing and design).
Returned cheques
5.14 Our inspection revealed that returned cheques are not cancelled immediately and that there are gaps in the process where staff do not sign that a cheque has been passed on to them. We recommend that Tower Hamlets reviews this process to reduce the possibility of internal fraud.
Counter fraud
Fraud hotline
5.15 A fraud hotline can be a valuable source of referrals, and therefore revenue, for Tower Hamlets.
5.16 We recommend Tower Hamlets provides its telephone hotline aide memoire to benefit assessment staff and ensures that all staff are trained in answering a hotline.
Ensuring the integrity of staff
5.17 Sound recruitment and vetting practices are the first line of defence against internal fraud. XXXXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXX XXXXXXXX XXXXXXXXXXX XX XXX XXXXXX XXX XXXXX XXX XXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX XXXX XXXXXXX XXXXXXX.
* Highlighted parts of this report are omitted from the published version as they may assist fraudsters or may contain confidential commercial information.