Executive summary
Introduction
1.1 The role of the Benefit Fraud Inspectorate (BFI) is to inspect benefits administration and counter-fraud activity within councils, the Department for Work and Pensions (the Department) and its agencies. The findings from our inspections are reported to the Secretary of State.
1.2 Housing Benefit (HB) and Council Tax Benefit (CTB) are important
contributions to many household budgets. Just under 4 million people receive
HB, including many pensioners and families with children. It helps one in
6 households meet the cost of their housing at an annual cost of £12.1 billion.
There are over 4.6 million people in receipt of CTB, at a cost of over
£2.8 billion.
1.3 In its response to the Housing Green Paper of November 2000, the Department agreed to develop a performance framework for HB. BFI played a major role and the HB and CTB Performance Standards were launched and published in April 2002. They are standards the Department expects councils to aspire to and achieve in time. Every local authority has received a copy of the Standards and receives amendments when changes are introduced. Councils are encouraged to complete a self-assessment against them.
1.4 The Performance Standards allow councils to make a comprehensive self-assessment of whether they deliver benefit effectively and securely. While the Department has chosen to consider the full picture of what constitutes an effective and secure Benefits service that meets wider strategic objectives, this does not preclude inspections of specific aspects of HB and CTB administration.
1.5 This report assesses Breckland District Council’s performance for its processing of new HB and CTB claims. We have limited the scope of this inspection to those elements of Strategic management, Processing of claims and Customer services that have a direct impact on Breckland District Council’s reported performance against the Best Value performance indicator for processing new claims.
1.6 Announced by the Minister for Housing Benefit and Anti-Fraud in January 2004, focused inspections are designed to provide for quick improvements in performance in specific areas of benefits administration. Breckland District Council was selected for a focused inspection because, for the quarter ending 31 December 2003, it reported that it was taking on average 23 days to process new HB and CTB claims. This reported performance was in the top quartile for councils in the United Kingdom and within the Standard of 36 days.
1.7 The aim of our inspection was to:
- examine reported performance against the new claims Best Value performance indicator and identify any factors that were contributing to the speed of claims processing
- identify areas of good practice.
1.8 As part of this process, we:
- analysed a sample of 30 new claims for the period January 2004 to
August 2004 - supplemented our quantitative analysis of claims data with qualitative information from interviews and workshops with managers, staff and key stakeholders.
1.9 We would like to thank the management and staff of Breckland
District Council for their help and support during this inspection and particularly
during the on-site phase of the inspection that took place in September and
October 2004.
Background
1.10 Breckland District Council had formed a partnership with Forest Heath District Council from 6 August 2003 to deliver a Revenues and Benefits Service to customers of both council's. The partnership was called the Anglia Revenues and Benefits Partnership.
1.11 The Partnership was formed as a result of the Best Value Reviews of both Breckland and Forest Heath councils, where it was shown that the authorities should modernise and improve their approach to the delivery of Benefits. The desired outcomes of the Partnership were to provide:
- an efficient and excellent service,
- economies of scale with an ability to absorb change
- improved customer satisfaction
- the promotion of electronic service delivery.
1.12 In addition, the Partnership had a key joint target to achieve top quartile performance in the Best Value performance indicator for new claims processing by April 2005.
Summary
1.13 During the 2 years before our inspection Breckland District Council had demonstrated the capacity to steadily improve its performance for processing new claims. From a poor average of 122 days in 2002/03, new claims were being processed within an impressive 25 days at the time of our inspection in September 2004. The foundation for this dramatic improvement was an innovative approach to the delivery of its Benefits service.
1.14 New claims processing improvement was sustained through a major change programme that included the co-location of Forest Heath and Breckland Benefits staff. This was successfully managed to ensure output performance did not suffer.
1.15 The Benefits Service had a clear corporate vision and objectives which had been translated successfully into paying claims quickly and accurately. This report identifies a number of good practices in the areas of management checking, target setting and monitoring.
1.16 These good practices underpinned Breckland District Council’s planning and control of the claims process. Feedback from the performance of individuals and teams provided the means for continuous improvement through ongoing support.
1.17 The quality of claims processing was found to be consistently to a very high standard, particularly for gathering all required evidence and undertaking verification.
1.18 We identified a need and make recommendations for Breckland District Council to produce comprehensive procedural guidance and for Rent Officer referrals to be made more quickly. Payments on account were not being systematically considered and this needs to be remedied to comply with statutory obligations.
Strategic management
1.19 Breckland District Council had a clear direction set within its vision and corporate aims. Explicit policies and objectives for Benefits were endorsed by Members and linked to corporate priorities through the Anglia Revenues and Benefits Partnership Work Programme 2004/05.
1.20 Comprehensive documented plans for delivery of Benefits had been developed though its work programme, which contained detailed targets, aimed at ensuring continuous improvements through controlled step changes and milestones. These targets were comprehensive and included all relevant national Best Value performance indicators as well as local aims. Plans were endorsed and supported by Members and Senior officers, with resources being targeted at meeting prioritised objectives.
1.21 Performance targets were reflected in team and individual’s work objectives and we found these had been effectively communicated to staff at all levels and were clearly understood by management and staff.
1.22 The organisational structure of Benefits allowed for the most efficient use of resources to meet priority targets set. Clear lines of communication had been established with roles and responsibilities of individual officers clearly defined.
1.23 Performance was effectively monitored against the Service targets set and management information reports were provided to Members at regular agreed intervals.
1.24 There was evidence of the effective use of management information reports generated by the Benefits IT system and collated from the results of management checks undertaken. This management information was used to identify system and user errors, informing training needs.
1.25 However several areas for further improvement were identified. Breckland District Council needs to introduce a single source of documented procedures and ensure that there is a process to update these procedures to reflect changes.
1.26 In addition it recognised that it needed to review internal working arrangements with other parts of the council, in particular to establish formal lines of communication between Benefits and Customer Services. It is important that an effective working relationship is maintained as the claim receipt process and initial evidence gathering could have a considerable impact on the speed of claims processing.
Processing of claims
1.27 Clear targets had been set in line with Best Value performance indicators and focused on the Service achieving top quartile performance.
1.28 Breckland District Council had improved its performance for
the processing of new claims from an average of 122 days for 2002/03 to
33 days for 2003/04 exceeding the Standard of 36 days. It also improved its
performance for processing the percentage of new claims within 14 days of
all information becoming available, from 30% for 2002/03 to 81% for 2003/04.
1.29 The significant improvement in performance had followed a major organisational re-structure within the council and a review of how Benefits processing work was managed and monitored throughout the process. Processes developed included:
- a comprehensive preview of all new claims and associated evidence received at customer reception points, caller offices and by Registered Social Landlords
- the introduction of a national initiative that allowed Registered Social Landlords to verify claims and validate supporting evidence
- the effective management of incoming work by Team Managers
- a comprehensive pre-payment checking programme to ensure high quality and accuracy of work. Team Managers returned incorrect cases to the original Assessor for re-assessment
- monitoring performance against its own internal targets, Best Value performance indicators and linking individual performance to its performance appraisal system.
1.30 We found effective management of the Benefits Service, which was demonstrated following the slight deterioration in performance, for a short period, during the merger of its Benefits Service with that of Forest Heath District Council. The impact of this major re-organisation was closely monitored and performance levels were quickly re-established.
1.31 However, to ensure continuous improvement and the achievement of the challenging targets set, Breckland District Council had recognised it needed to consider the depth and use made of management checking to identify reasons for delays in new claim processing.
1.32 In addition our sampling of cases identified failures to comply with legislation in the time taken to refer cases to the Rent Officer and to make payments on account in all appropriate cases. Breckland District Council needs to take urgent action to ensure its procedures consistently meet its statutory obligations.
Good practice summary
1.33 Our inspection of Breckland District Council identified a number of examples of good practice which had:
- significantly increased the number of locations where claim forms and evidence could be accepted and checked
- ensured that missing evidence in support of claims was identified quickly
- contributed to improvements in the speed of processing new claims
- provided assurance that statistical returns made to the Department were accurate.
1.34 We have summarised them using the following headings:
- Evidence gathering and checking
- Management checking
- Target setting and monitoring
- Guidance.
1.35 Although these examples of good practice may not be appropriate to all councils they have enabled Breckland District Council to improve and sustain its overall performance.
Evidence gathering and checking
1.36 Breckland District Council had processes in place to ensure that only original documents were accepted as evidence. Original documents were photocopied and stamped original seen, and then signed and dated by the authenticator. Breckland District Council had provided Verification Framework training for all Customer Service staff, Visiting Officers and Registered Social Landlords.
1.37 Although customers were allowed, by law, 28 days to submit outstanding evidence it was Breckland District Council’s practice to request this evidence within 14 days. This was good practice as it encouraged customers to provide any outstanding evidence as soon as possible.
1.38 Additionally, when a claim form was received a receipt was issued to the customer. This receipt detailed any further information required from the customer to complete the claim and the date, 14 days from receipt, that it should be submitted by. A copy of this checklist was scanned onto the Document Image Processing system, along with the claim form and, if appropriate, after 14 days a Benefits Assessor would issue a reminder letter.
Management checking and monitoring
1.39 Breckland District Council had a comprehensive checking programme. Team Managers undertook pre-notification checks on a randomly selected 10% of claims processed. In cases where errors were found the claim was returned to the Assessor for correction.
1.40 Additionally the Financial Control Section checked new claims that had taken over 50 days to process to identify the reasons for delay. It also undertook checks to validate Breckland District Council’s performance against the Best Value performance indictors. The Financial Control Section provided feedback informally to Team Managers and the Training Officer.
1.41 Breckland District Council used its management information to identify the errors made by staff and the reasons for delay. Weekly team meetings were used to provide awareness training to eradicate the common errors and improve processes, which in turn improved the speed of processing and accuracy. Performance was regularly reported to Senior officers and Members.
1.42 When errors were identified consideration was given to the reason why and whether 100% checking on individual Assessors would be appropriate. Following new entrant training the Training Officer continued to undertake a 100% check on new Benefits Assessors work until their level of performance was judged to be satisfactory.
Target setting and monitoring
1.43 Targets were derived from those set in its work programme, and were incorporated into staff key work objectives. The Team Managers monitored performance on a daily, weekly and monthly basis. The overall performance of Benefits was discussed at weekly team meetings and individual performance was discussed as part of the appraisal process.
1.44 Management information produced from performance monitoring provided Senior officers and Members with assurance of the Benefits Service performance against the Best Value performance indicators. Benefits Service staff were regularly informed of performance against targets, and discussions with staff confirmed that discussing performance provided motivation to improve performance.
Guidance
1.45 Although Breckland District Council had developed a guidance manual that was issued to new entrant staff following training, it did not have a single source of procedural guidance. However, regular awareness sessions were delivered by the Training Officer at the weekly team meetings and these sessions included any changes to HB and CTB.
1.46 The most common errors found as a result of management checks informed further awareness sessions designed to remind staff of the correct procedures to follow. Periodically a quiz was undertaken to check staff understanding.
1.47 This method of ensuring that all staff received the same information, at the same time, and backed up by the rest of their understanding, helped to ensure a consistent approach to claim processing.