Executive Summary
Background
1.1 Housing Benefit (HB) and Council Tax Benefit (CTB) are important parts of many people’s budgets. Just under 4 million people receive HB, including many families with children, and many pensioners. It helps one in 6 households meet the cost of their housing at an annual cost of £11.5 billion.
1.2 In its response to the Housing Green Paper of November 2000 the Department for Work and Pensions (the Department) agreed to develop a performance framework for HB. Benefit Fraud Inspectorate (BFI) played a major role and the HB/CTB Performance Standards were launched and published in April 2002. Each local authority was sent a copy of the Standards at that time, and encouraged to complete a self-assessment against them.
1.3 The Performance Standards allow local authorities to make a comprehensive self-assessment of whether they deliver benefit effectively and securely. The Department has chosen to consider the full picture of what constitutes an effective and secure Benefits service, that meets wider strategic objectives, rather than focusing solely on speed and accuracy of processing claims and security. They are the standards the Department aspires to and expects local authorities to achieve in time.
1.4 How quickly local authorities meet these standards will depend on the circumstances they face, current levels of performance and the level of local and national resources, as well as the effectiveness of change management within the authority itself. The Department has therefore not set a timescale for how rapidly the Standards will need to be met by local authorities. There is, however, one exception. This relates to the speed of processing claims, where the Department has set the Standards based on the top quartile Best Value performance data, and expects local authorities to achieve this by 2005/06.
1.5 The Performance Standards can be downloaded from the Department’s website, www.dwp.gov.uk.
1.6 Starting with this report on Rhondda Cynon Taf County Borough Council (Rhondda Cynon Taf), BFI reports will assess a local authority’s administration of housing benefits against the Standards. We are grateful to Rhondda Cynon Taf for agreeing to be the first authority so assessed.
Overall performance
Fig. 1.1: Rhondda Cynon Taf’s performance against Standards |
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Source: BFI Inspection assessment
1.7 Figure 1.1 is a radar graph that provides an illustration of Rhondda Cynon Taf’s performance against the Performance Standards’ 7 functional areas. The outside line shows the Standard level of performance, the inside line is BFI’s assessment of Rhondda Cynon Taf’s performance at the time of our on-site inspection in September 2002.
1.8 Our inspection was based on validation of Rhondda Cynon Taf’s self-assessment for the Processing of claims Standard and our own assessment for the other 6 Performance Standards.
1.9 Although we found that Rhondda Cynon Taf had not reached Standard in any of the 7 Performance Standards, we did find a great deal of professionalism, enthusiasm and effort to improve the administration of HB and CTB. In fact, we found some elements within the Standards where performance was either at or above Standard. Verification of claims before benefit is paid was strong. This and the rigorous management checks we found lead us to conclude that Rhondda Cynon Taf will secure the gateway to the benefits system. The Benefit Fraud team had good liaison with the Department’s Counter Fraud Investigation Service and effective management of investigations. Prosecutions secured by the Benefit Fraud team are well publicised and should act as a deterrent to potential fraudsters.
1.10 We found a great deal of support for the Benefits service from both the Chief Executive and the Group Director of Corporate Services. This was further enhanced by the support given to the service by the Deputy Leader of the council. From the information we have been provided with and our observations, we are confident that Rhondda Cynon Taf will be able to build successfully on its achievements so far.
Performance against Standards
Strategic management
1.11 Rhondda Cynon Taf did not achieve Standard in this area but performed well in terms of calculation of cost of claims and internal working arrangements.
1.12 Our main concern was that there was no corporate strategic vision for Benefits in relation to alleviating poverty and tackling social exclusion. We are confident that this will change, however, based on the commitment we saw from senior officers and Members to improving performance. Audit Commission in Wales (District Audit), advised us of improved performance across the authority and endorsed this view.
1.13 Rhondda Cynon Taf will achieve this Standard and improve performance in other Standards, if it:
- includes the Benefits service in its strategic vision
- adopts a staff appraisal system
- fully documents procedures across benefit administration
- implements a comprehensive performance management and monitoring system.
Customer services
1.14 Rhondda Cynon Taf did not achieve Standard in this area but has clear strengths in addressing complaints, in providing clear and accessible claim forms and in dealing with appeals. We also found that Rhondda Cynon Taf made efforts to make the service accessible to its disabled customers.
1.15 Our main concerns were that since the telephone system was changed in July 2002, customers trying to contact Rhondda Cynon Taf’s Benefits service by telephone often experience problems getting a reply. The authority has done little to reach customers that do not claim but who may be entitled to benefit, and had not sought to identify any ethnic minority groups. As a result it did not know if any special provision should be made to make the service accessible to those who do not speak English or Welsh.
1.16 Rhondda Cynon Taf will achieve Standard in this area if it:
- improves telephone communication between District Housing Offices and the Benefits service
- provides all Customer service staff with full training
- undertakes a survey to identify the needs of minority groups.
Processing of claims
1.17 Rhondda Cynon Taf did not achieve Standard in this area but verification of information in support of a claim was good and is likely to get better when the appropriate policies and procedures are fully documented.
1.18 Clear strengths were its management checking, processing changes of circumstances and effective liaison with the Community Housing Division.
1.19 Rhondda Cynon Taf will achieve Standard in this area if:
- it introduces written policies and procedures
- it improves communication with its customers
- original documents are requested as a matter of course
- decisions are documented when deciding claims
- visiting officers are used to confirm residency.
Working with landlords
1.20 Rhondda Cynon Taf was close to achieving Standard in this area. We found that the Benefits service had a good relationship with its landlords and it held regular liaison meetings with Registered Social Landlords, private landlords and its own Community Housing Division. A range of issues relating to the Benefits service is discussed at these meetings.
1.21 Rhondda Cynon Taf will achieve Standard in this area if it provides information packs to new landlords.
Internal security
1.22 Rhondda Cynon Taf did not achieve Standard in this area but its recruitment procedures were good and the internal control mechanisms were kept up-to-date. We found weaknesses, however, particularly XXXX XXXX XXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXX
1.23 Rhondda Cynon Taf will achieve Standard in this area if it:
- XXXX XXXX XXXX XXXX XXXX XXXX XXXX
- improves its IT Security
- XXXX XXXX XXXX XXXX XX
Counter-fraud
1.24 Rhondda Cynon Taf was close to achieving Standard in this area, and we found that its counter-fraud activity was effective. It worked well with the Department’s Counter Fraud Investigation Service and the investment in training for all fraud staff has improved the quality and outcome of investigations. The use of data matching, close liaison with Benefits service colleagues and the involvement of the Benefit Fraud team in the returned cheque procedure, increased the volume of high quality referrals. All these are clear strengths.
1.25 Benefit investigators’ work is governed by a formal code of conduct and management checks are undertaken monthly to ensure compliance with regulations and progress of investigations. The authorised individual powers are used regularly and effectively to obtain information from employers. There is a history of successful prosecutions and other relevant sanctions underpinned by a prosecution policy that has been endorsed by Members.
1.26 Rhondda Cynon Taf will achieve Standard in this area if it:
- introduces fully documented procedures
- produces a Fraud business plan
- provides and publicises a dedicated Fraud hotline
- reduces delays when dealing with Housing Benefit Matching Service data.
Overpayments
1.27 Rhondda Cynon Taf did not achieve Standard in this area. Although classification of overpayments met all requirements.
1.28 Rhondda Cynon Taf will achieve Standard in this area if it:
- undertakes effective management and recovery of debt
- develops an interface between the benefits IT and overpayment recovery systems
- collects relevant and accurate management information
- improves decision notices.
Rhondda Cynon Taf
1.29 Rhondda Cynon Taf provides services to 240,000 people. This is the second largest population of any local authority in Wales. The authority covers 42,400 hectares and takes its name from the rivers Rhondda Fawr, Rhondda Fach, Cynon and Taf. Pontypridd, Aberdare and Tonypandy are the main towns, each with their own distinctive characteristics and shared history as former coal mining communities.
1.30 The authority became operational in April 1996 as part of the local government reorganisation in Wales, when the boroughs of Rhondda, Cynon Valley and Taff Ely were amalgamated, along with some of the functions of Mid Glamorgan County Council.
1.31 We were told that the amalgamation of the 3 boroughs and the County was problematic and it is only within the last 3 years that the authority as a whole has had clear strategic direction. The Benefits service has overcome a difficult period following local government reorganisation and we saw clear evidence especially in processing of claims that the standard of service is improving.
1.32 As well as structural change in the authority, there have been significant changes in its benefits business. In September 2001, the authority unified the administration of benefit administration within the Finance Division (transferring control of Rent Rebate cases from the Community Housing Division) to address the operational difficulties posed due to the split responsibility for the service.
1.33 In November 2001, the Benefit Fraud team was merged with the Benefits service within the Revenues and Benefits unit (transferring from internal audit).
1.34 From April to July 2002, a document image processing system coupled with a workflow package was introduced to modernise and resolve the Benefits service’s filing and document routing issues. At the time of our inspection, Rhondda Cynon Taf was evaluating tenders for a new benefits IT system that it expects to be operational by the summer of 2003.
1.35 Before and during the on-site phase of our inspection, in September 2002, the authority was developing its response to The Wales Programme for Improvement. This is the equivalent of the approach to Best Value in England.
1.36 The political make up of the council at the time of our on-site inspection is shown in Figure 1.2.
| Party | Seats |
|---|---|
Plaid Cymru |
38 |
Labour |
26 |
Democratic Alliance |
7 |
Independent Group |
3 |
Independent |
1 |
Total |
75 |
Source: Rhondda Cynon Taf
1.37 Figure 1.3 shows the level of unemployment in the parliamentary constituencies covering the local authority is above the national average for England and Wales for Cynon Valley and Rhondda but not Pontypridd.
| Parliamentary constituency | % unemployment |
|---|---|
Cynon Valley |
4.1 |
Rhondda |
4.0 |
Pontypridd |
2.8 |
National average for England and Wales |
3.6 |
Source: House of Commons Library
1.38 The gross revenue expenditure of Rhondda Cynon Taf for 2001/02 totalled £283.7 million. HB and CTB expenditure for 2001/02 was £55.1 million, 19% of gross revenue expenditure.
1.39 Figures 1.4 and 1.5 show the benefit spend and caseload for the years 2000/01 to 2002/03.
| Spend | 2000/01 £ |
2001/02 £ |
2002/03 £ (budget estimate) |
|---|---|---|---|
Rent Allowance |
21,816,469 |
23,212,292 |
24,560,000 |
Rent Rebate |
18,961,213 |
18,862,985 |
19,210,000 |
CTB |
14,182,366 |
13,086,024 |
13,697,000 |
Total |
54,960,048 |
55,161,301 |
57,467,000 |
Source: Rhondda Cynon Taf
| Case type | 2000/01 | 2001/02 | 2002/03 (at 30/8/02) |
|---|---|---|---|
Rent Allowance |
8,004 |
7,922 |
8,138 |
Rent Rebate |
9,262 |
8,590 |
8,496 |
CTB |
11,516 |
10,842 |
9,859 |
Total |
28,782 |
27,354 |
26,493 |
Source: Rhondda Cynon Taf