Findings

Introduction

2.1 In this section we provide some basic information on RMBC. In subsequent sections we report on:

getting it right – making sure benefits payments are correct from day one
keeping it right – ensuring payments are adjusted as circumstances change
putting it right – detecting when payments go wrong and taking prompt action to correct them, with appropriate penalties to prevent a recurrence
making sure the strategy works – monitoring progress, evaluating the strength of defences and adjusting them in the light of experience.

2.2 BFI is an integral part of the Government’s strategy for tackling benefits fraud. Through our reports on Local Authorities (LAs) and DWP agencies we aim to:

meet the requirement put upon us by the Social Security Administration Act 1992
identify where improvements can be made in benefit administration to raise overall standards
make recommendations to address weaknesses
identify and spread good practice among administrators.

2.3 Information for this inspection was gathered from a range of sources, including:

RMBC
DWP
Citizens Advice Bureau
the rents service (RS)
External Audit (EA)
BFI BV inspection.

2.4 Although key information was collected earlier, much of the detail was gathered during the on-site phase of the inspection, from 5 August 2002 to
23 August 2002, during which time we interviewed staff and sampled the following cases:

30 new claims assessed between 1 April 2002 and 30 June 2002
30 renewal claims assessed between 1 April 2002 and 30 June 2002
30 overpayment cases raised in the 12 months up to 30 April 2002
40 fraud investigation cases raised between January 2002 and March 2002.

All samples were randomly selected.

2.5 The borough of Rotherham is situated in South Yorkshire. It is largely rural, with Rotherham at the heart of its regeneration area. The current population of the borough is 255,000, about 3% of which are from ethnic minorities. Rotherham is the main urban centre, surrounded by a variety of villages and townships such as Anston, Dinnington, Kiveton Park, Maltby, Rawmarsh, Swinton and Wath.

2.6 Rotherham has widely diversified from its industrial base over recent years into growth sectors such as IT, high-value engineering, food, healthcare, construction and service industries. The current unemployment rate in the Rotherham area is 5.2%.

2.7 RMBC is Labour-led, represented by the following councillors:

58 Labour
4 Conservative
3 Independent
one Other.

2.8 RMBC has a cabinet structure, with select committees, panels and area assemblies having specific areas of responsibility.

2.9 The main council offices are situated in the centre of Rotherham, and there are 8 District Offices located around the borough. A benefits advice service is provided by the customer services team in each of these offices.

Benefits expenditure and caseload

2.10 Figure 2.1 shows that there has been a slight increase in benefit expenditure over the last 3 years.

2.11 RMBC’s gross revenue expenditure for 2000/01 was £420 million of which £53.3 million was HB and CTB spend. This has increased to £432.5 million for 2001/02 of which £56.5 million was HB and CTB spend.

Fig. 2.1: HB and CTB expenditure
	1999/2000 (£000)	2000/01 (£000)	2001/02 (£000)
Rent Allowance	14,531	14,130	15,071
Rent Rebate	23,427	24,465	25,976
Council Tax Benefit	14,021	14,708	15,468
Total	51,979	53,303	56,515

Source: BFI questionnaire

2.12 RMBC's caseload is predominantly made up of Rent Rebate (RR) cases. This reflects the high proportion of council managed housing stock in RMBC.

Fig. 2.2: HB and CTB caseload
	1999/2000	2000/01	2001/02	2002/03 (as at May 2002)
Rent Allowance	5,032	5,035	5,006	4,858
Rent Rebate	15,912	15,232	14,892	14,792
Council Tax Benefit	26,649	26,512	25,194	24,856

Source: BFI questionnaire

RMBC organisation

Organisation of the benefits service

Fig. 2.3: Organisation of the benefits service

Source: RMBC

2.13 Figure 2.3 shows the organisation of the benefits service in August 2002. RMBC is currently planning to revise the organisation to take account of VF and a management checking regime.

Organisation of counter fraud staff

Fig. 2.4: Organisation of the counter fraud section