3.1 In this section we set out our findings and conclusions about EP&NBC’s benefit administration and counter fraud work. These are set out under 8 headings, each covering a key component of effective and secure benefit delivery. The first 4 relate to benefit administration:
3.2 The next 4 deal with counter fraud work:
3.3 These headings are the benchmarks used to assess the LA’s performance.
3.4 Claim initiation is the planned programme of activities used to determine entitlement to and encourage the take-up of benefit. It covers:
3.5 An SLA is in place with BA covering the information required by EP&NBC to process HB and CTB. It mirrors the national framework. The liaison officers appointed to review the SLA meet quarterly to discuss issues that arise from the exchange of information agreement.
3.6 There is no SLA in place between EP&NBC and ES. However, during our inspection, ES and EP&NBC had started to develop a formal SLA and create a structure for closer working and liaison.
3.7 Liaison meetings with LA and BA at operational level are held regularly. The enthusiasm from BA and the LA to work closely together is commendable but more effective use of liaison is possible.
3.8 Operational liaison with ES is less than effective than with BA and we found no evidence of senior management meeting with their counterparts from the LA. The ES liaison officer has attended only one meeting. ES and LA feel that liaison is good on a day-to-day basis but little formal liaison exists
3.9 We consider that EP&NBC would benefit by working more closely with BA and ES. A recommended action plan to achieve this is at Appendix E.
3.10 A detailed summary of post opening procedures is at Appendix D. We are satisfied that the receipt of the post from the Royal Mail is secure. However EP&NBC could further improve the security of the process by:
3.11 The Benefits Enquiry office is situated at the Civic Centre in Ellesmere Port council offices. The facility is known as a ‘one-stop shop’. Counter staff take enquiries in relation to HB, council tax, CTB rents and overpayments. The shop is staffed by 3 full-time workers and one part-time worker. Technical benefits knowledge is good and counter staff rarely have to ask benefits staff for assistance.
3.12 EP&NBC is preparing to implement the VF between January and March 2000. It has trained senior staff and the VF appears as a standing item in weekly staff meetings. Counter staff have had initial awareness training. We feel that caller statistics and VF training should be reviewed to take into account the type of enquiries that will arise so that resources can be deployed more effectively.
3.13 As with other benefits staff, the counter staff have undertaken personal development interviews. All the staff have had the opportunity to take an National Vocational Qualification (NVQ) in customer care.
3.14 EP&NBC has no customer charter for quality of service provision. Enquiries are made in person at the one-stop shop at a counter protected by a screen. There are 4 private interview rooms, one of which is also protected by a glass screen. There is a comprehensive range of LA and benefit forms (HB, CTB and extended payment (EP)) in the waiting area along with other BA benefit leaflets. There are, however, no Jobseeker’s Allowance (JSA) leaflets. Potential claimants for HB and CTB can pick up a form at the customer counter.
3.15 If passports, benefit books or items associated with claimants’ identification are received in the post by counter staff, they are logged into a ‘post received’ book and locked into a secure cabinet until collected by a member of the benefit team.
3.16 We found that EP&NBC provides a good standard of customer service which would be further improved by:
3.17 To promote benefit awareness with customers and potential customers EP&NBC uses a comprehensive range of leaflets which is on display in the enquiry area. The LA also leads a group of Citizen Advice Bureau (CAB), BA and Cheshire Social Services to promote benefit awareness. Groups such as Age Concern, Cheshire Deaf Society and the talking newspaper for the blind are invited to participate.
3.18 To support this awareness, EP&NBC also employs a benefits adviser who covers customer service enquiries for all DSS benefits. Priority is given to visiting recently bereaved claimants. Benefit surgeries are also held in Neston Town Hall on Monday and Friday mornings. The officer helps the claimants to complete claim forms for all DSS benefits and deals with cases referred from the Benefits section, CAB and elected members. This is an example of good practice. The officer encourages benefit take-up by giving talks to clubs, community centres and women’s groups in the area. The benefits adviser has regular contact with welfare rights groups, the BA and CAB. The officer maintains a range of posters advertising benefits in libraries, sheltered housing and information offices.
3.19 The Benefits section has close contact with the Housing Department. All housing officers and the receptionists at the Housing Department hold a stock of benefit claim forms which they issue when a tenancy is allocated.
3.20 An effective measurement of the customer service provided by the LA is the handling of customer complaints. The LA has a complaints procedure, which is used throughout the LA. A pull-out freepost complaints form is included within a leaflet which advertises who should be approached within the LA to lodge a complaint. The leaflet also contains details of the roles of the Ombudsman and members if the complaint has not been dealt with to the customer’s satisfaction.
3.21 Benefit complaints are entered into a record held by the Assistant Borough Treasurer. Since 1994, only 7 benefit complaints have been recorded. This is because only complaints received on an official complaint form are registered.
3.22 Information recorded in the complaints records includes:
3.23 We consider that EP&NBC could improve its procedures by including all benefit complaints received by the Benefits section, regardless of the type of form used. This will provide more realistic management information on the type and nature of complaints received. The information recorded could also be expanded to include details of any staff training needs arising from the investigation of the complaint.
3.24 The claim form used by EP&NBC has recently been revised and only limited stocks were ordered in advance of our inspection. The LA was anxious to take on board any recommendations we have for future reprints. We examined the claim form. We also held a workshop with staff and management to discuss the design elements of the form.
3.25 We found the form contained a number of good practices:
3.26 We consider that EP&NBC could improve its claim form by:
3.27 Full details of our examination of the claim form are at Appendix C.
3.28 We found that EP&NBC was referring cases to the Rent Officer Service (ROS) as appropriate. Our discussions with the Rent Officer revealed that, although an SLA was agreed, there had been no monitoring of the performance.
3.29 This includes the processing of claim forms and the quality of verification of information obtained before determining a benefit claim.
3.30 EP&NBC has been successful in its bid for funding for the VF due to begin between January and March 2000. Management and organisational issues are discussed at Appendix H.
3.31 A key component of the VF is requiring an increased level of evidence and checking it. Our examination of the LA procedure manual, interviews with staff and management and a sample of claim files lead us to conclude that verification is already of a good standard. From January 1999 the LA had started verifying identity in line with the requirements of the framework, for example by asking for driving licences, passports etc. Our examination of casework showed that 60% of our sample was already verified in line with the VF criteria. Other aspects of the claims which require verification include:
3.32 Our sample included 20 new and 20 renewal claims, from those determined in the past year. We are pleased to note that renewal claims are subject to the same verification criteria as those applied to new claims. In recent claims we also noted that photocopies of original documents have been stamped with the note ‘photocopy original documents seen’ and signed by the member of staff involved. The Figure below details our findings in this area:
| Fig. 3.1: Analysis of verification standards | |||
|
Evidence type |
Number of cases appropriate for verification |
Number of cases fully verified |
Percentage of case compliance |
| Identity |
40 |
24 |
60 |
|
Rent liability |
40 |
38 |
95 |
|
Earned income |
8 |
8 |
100 |
|
Capital |
17 |
15 |
80.3 |
Source: BFI analysis
3.33 The LA has advised us that from March 1999 it had started a programme of visiting all new claims, where previously it had only visited new rent allowance cases. From our sample of 40 cases we saw documentary evidence that 31 visits had taken place.
3.34 This process shows a proactive approach to the verification of claims and prevention of fraud. At present, the E&O section carries out the visits. The forthcoming implementation of VF will require the LA to review the visiting process and adopt new criteria. Our suggested organisational structure to support this is at Appendix H.
3.35 We conclude that the LA has sound verification procedures in place and is well placed to comply with the requirements of the VF.
3.36 Regulation 91 also requires LAs in rent allowance cases to make a payment on account within 14 days of the claim, if the lack of a determination does not arise from a failure to supply information.
3.37 The Figure below gives details of the performance against target reported by EP&NBC to DSS over the past 2 years measured against the reported national average.
| Fig. 3.2: 14-day performance target | ||
|
1996/97 % |
1997/98 % |
|
| EP&NBC |
98 |
98 |
| National average |
78 |
79 |
Source: DSS (from LA returns)
3.38 Performance in 1998/99 has dropped. EP&NBC told us that the level reached in 1998/99 was 86%. Management told us that the dip in performance was due to unexpectedly high levels of long-term sick leave. However, the figure is still above that national average.
3.39 To form a view of the integrity of the data supplied by the LA to the DSS we examined a sample of 20 new claims, from those determined in the 12 months ending May 1999. The Figure below gives details of our findings.
| Fig. 3.3: Analysis of new claims sample against 14-day targets | ||
|
Claim type |
Percentage within 14 days |
Percentage outside 14 days |
| Rent rebate |
88 |
12 |
|
Rent allowance |
100 |
0 |
|
CTB |
67 |
33 |
|
Average |
85 |
15 |
Source: BFI analysis
3.40 Our sampling confirms the integrity of the Management Information System (MIS) data supplied to DSS. Although not part of the MIS return, the overall time taken to process claims to benefit, from date of receipt of claim to date of first payment, is a further measure of the efficiency of the LA in gathering information. It is also the criterion by which claimants measure the service they receive. Our analysis showed that the LA paid 85% of cases within 14 days of receipt of the claim form. This is a good performance when measured against national statistics.
* Highlighted parts of this report are omitted from the published version as they may assist fraudsters or may contain confidential commercial information.