Section 2:
Management Summary

Operational context

Benefit administration

2.1 EP&NBC seeks to provide an efficient, cost effective and high quality service to HB and CTB claimants. We found many examples of good practice which are detailed in this report. However, it faces challenges with the introduction of the VF and the effective implementation of the recently agreed prosecution policy. To facilitate these changes it will have to review the structure of the Benefits and E&O sections.

2.2 We found many good administrative practices, including:

• staff were well trained and had good technical knowledge
• there was a strong commitment to customer service
• many positive steps had been taken to raise public awareness of HB and CTB
• the level of fraud awareness among staff was high
• relationships between the benefits staff and fraud staff were good
• verification of information was good
• performance against the 14-day clearance target was high
• staff have access to a Remote Access Terminal (RAT)
• a complaints procedure is in place and is used throughout the LA
• the quality and accuracy of decisions is monitored
• costs per claim were below average.

2.3 However, EP&NBC has an opportunity to build on these good practices by:

• improving management information, particularly with regard to overpayments (see Section 3 and Appendix I)
• rationalising the organisation of the E&O section to provide more focus on counter fraud work and facilitate the introduction of the VF (see Appendices H and L)
• reviewing debt management procedures (see Section 3)
• reviewing and improving post opening procedures (see Section 3 and Appendix D)
• securing the cheque dispatch process (see Section 3 and Appendix I)
• improving the liaison arrangements with the Benefits Agency (BA) and Employment Services (ES) (see Section 3 and Appendix E).

Counter fraud

2.4 Our inspection of the EP&NBC Counter fraud section found it to be good. This section has suffered because of the long-term sickness absence of experienced officers but has maintained a high level of commitment to its work.

2.5 The staff are well informed and conversant with the technical aspects of their work. They are co-located with the Benefits section and make the effort to ensure that awareness among benefit staff is maintained by providing regular feedback from referrals.

2.6 Examples of some of the positive features of EP&NBC’s counter fraud effort are:

• the recently agreed prosecution policy
• the close working with Benefit Fraud Investigation Service (BFIS), including arranging for a BFIS investigator to be based in their office
• the high standard of technical training
• the efforts made to improve fraud awareness
• the introduction of a fraud hotline
• the good use which is made of the fraud management system
• the good use which is made of data matching.

2.7 Areas where EP&NBC should improve its performance in counter fraud and detection include:

• inspectors should be appointed under section 110A of the Social Security Administration Act 1992 (see Section 3)
• the liaison arrangements with BFIS should be strengthened to include more joint operations and sharing of information (see Section 3)
• the resource available for counter fraud work should be increased by at least one post (see Section 3 and Appendix L)
• publicity arrangements should be developed to capitalise on successful prosecutions (see Section 3).

Liaison with other Agencies

2.8 Administration of HB and CTB depends heavily on good working relationships with BA and ES. At the time of our visit the relationship between EP&NBC and BA was covered by a Service Level Agreement (SLA). However, this agreement was not being formally monitored and staff were not fully aware of the agreed service targets.

2.9 The relationship with ES was even less satisfactory. No formal SLA was in place. In common with what we have found elsewhere there was little understanding of the roles of the respective organisations at operational level.

2.10 More detail on the specific actions that are needed is at Appendix E.