Appendix B: Benefit periods

Introduction

Regulations 66(2) of the HB Regulations and regulation 57(2) of the CTB Regulations provide that benefit periods should be determined individually, having regard to any relevant circumstances which may affect entitlement in the future. Berwick BC’s use of standard benefit periods for certain types of claim does not meet its legal obligation to consider the individual circumstances of each case.

It is also good practice in setting benefit periods to reflect the risk that cases present to the benefits system. VF provides guidance in this area by recommending benefit periods based on 5 risk groups. In this appendix we compare the 26 and 52 week benefit periods used by Berwick BC with the recommended periods outlined in VF risk groups A - E. The Figure below helps identify areas where Berwick BC needs to adjust its benefit periods to reflect the level of risk presented and certain areas where its benefit periods are shorter than those proposed in VF.

Findings

Fig. B.1: Benefit periods in Berwick BC compared to VF
	Type of cases	Benefit periods proposed in VF	Berwick BC action and benefit periods
Group A	Boarders Hostel dwellers and Housing in Multiple Occupancy tenants Previous fraudsters Disreputable landlords	26 weeks	Boarders, hostel dwellers and Housing in Multiple Occupancy cases are given a 52 week award. Berwick BC identifies cases of previous fraud using system notepad facilities, no specific action taken on these cases to restrict benefit period.
Group B	Sub-tenants Casual or seasonal earners Non IS cases receiving Statutory Sick Pay or Incapacity Benefit	26 weeks	All earnings cases have 26 week awards. Casual or seasonal workers and those with fluctuating earnings are reviewed every 3 months using diary dates on the HB system. Other cases in Group B 52 weeks
Group C	Lone parents Unemployed aged under 25 and living alone	52 weeks	All Group C cases 52 weeks
Group D	Self-employed RA excluding HA cases Unemployed	52 weeks	Berwick BC makes 26 week awards in self-employed cases. All other Group D cases 52 weeks
Group E	All other client groups	52 - 60 weeks	Berwick BC makes 26 week awards in any case with earnings. All other cases 52 weeks

Source: BFI analysis

VF risk groups A to E are also used to determine the frequency of visits and postal checks. Berwick BC does not have a programme of visits and does not undertake postal reviews.

Conclusions

Over the past 12 months Berwick BC has made some moves towards VF guidelines with changes in verification procedures and by introducing management checks. The benefit periods outlined above show some areas where Berwick BC should make shorter awards to reflect the level of risk presented, particularly in cases involving:

• previous proven fraud
• disreputable landlords
• Statutory Sick Pay or Incapacity Benefit.

In certain areas however, Berwick BC's benefit periods are shorter than VF recommendations, particularly in cases of earned income.

 

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