Section 1:
Introduction

1.1 This report by the Benefit Fraud Inspectorate (BFI) records the results of an inspection of Shrewsbury and Atcham Borough Council’s (SABC’s) administration of Housing Benefit (HB) and Council Tax Benefit (CTB). The inspection of SABC took place in April 1999 and followed the inspection methodology at Appendix A.

SABC background

1.2 Shrewsbury is the county town of Shropshire and SABC has a population of approximately 94,600. There are 40,194 properties on the council tax register.

1.3 In 1997/98 SABC employed 21 staff to administer claims to HB and CTB and undertake counter-fraud work. The total gross administration costs in 1996/97 were approximately £600,000 and SABC paid out over £13 million in HB and CTB. This represents about 40% of SABC’s gross revenue expenditure. Figure 1.1 shows the actual benefit payments made.

Source: Department of Social Security (DSS) from local authority (LA) returns

1.4 SABC’s benefits service is based in the Borough Treasurer’s Department. All functions are carried out in house, as HB and CTB administration has not been market tested. Over recent years there have been significant improvements to the performance of the benefits service, including:

• a higher proportion of cases reported as processed within the 14-day target, from 84% in 1995/96 to 97% in 1997/98
• an increase in subsidy income from DSS for counter-fraud work of £51,000 between 1993/94 and 1996/97
• a successful bid for Challenge funding from DSS for 1997/98
• the development and introduction of an increasing number of good practices.

1.5 These improvements have been partly achieved through increased levels of resources to support:

• a proactive approach to visiting
• the processing of claims
• staff training and development
• an effective fraud case management system.

1.6 Further general details about SABC are at Appendix B.