To consider the Work Plan 2017/18 and to consider the Council Tax, Housing Benefit and Council Tax Support Penalty and Prosecution Policy to comment thereon to the Executive Committee. 

13.1           Attention was drawn to the report of the Head of Finance and Asset Management, circulated at Pages No. 73-85, which provided assurance on the counter-fraud activities of the Council.  Members were asked to consider the Counter Fraud Unit Work Plan 2017/18, and the Council Tax, Housing Benefit and Council Tax Support Penalty and Prosecution Policy, and put forward any comments to the Executive Committee to aid its deliberations.

13.2           The Chair welcomed Kate Seeley, Senior Fraud Investigator from the Counter Fraud Unit to the meeting.  Members were reminded that the Council had approved the authority’s participation in the establishment of a permanent Counter Fraud Unit on 24 January 2017 and, from 1 April 2017, this was a permanent support service serving Tewkesbury Borough Council and four other partner authorities within the county.  The Work Plan 2017/18, attached at Appendix 1 to the report, had been agreed by the senior management team as the key areas to focus on during the year.  The work was largely proactive, with a drive and focus on gaining revenue.  A lot of work was done in the revenues section e.g. council tax, business rates, but also in housing and enforcement.  Reactive pieces of work were also undertaken e.g. referrals for investigation. 

13.3           The Counter Fraud Unit had been undertaking a review of a number of policies and procedures in support of each service area to enable criminal investigations to be legally undertaken and appropriate sanctions to be applied.  The Council Tax, Housing Benefit, Council Tax Support Penalty and Prosecution Policy had been drafted for use within the Revenues and Benefits team.  There had been a number of service changes within housing benefit which had meant that the previous policy around the enforcement of housing benefit and council tax was no longer relevant.  The proposed policy focused on council tax support, and the criminal and civil penalties which the Council could enforce, and the civil penalties available in relation to housing benefit and council tax.  This did not generate a huge amount of money but it was another way the Council could enforce the regulations surrounding council tax and impose penalties for those who did not follow the rules.

13.4           The Head of Finance and Asset Management explained that the Work Plan 2017/18 was focused on ensuring that policies were up to date and consistent for all Counter Fraud Unit partners and raising awareness among Officers and Members.  A Member raised concern that the Whistleblowing Policy was not working effectively as he understood that some Officers did not know who they should report to, or were reluctant to do so.  Assurance was provided that there were a number of contacts within the policy, including the Counter Fraud Unit which was independent and not linked to management in any way. 

13.5           A Member sought confirmation that the Counter Fraud Unit was geared up for the changes associated with Universal Credit.  The representative from the Counter Fraud Unit advised that housing benefit fraud would no longer be relevant but this had not been investigated for the last two years.  Local authorities would have responsibility for council tax support, and there would still be an element of investigation in relation to that, but the resources required would reduce dramatically.  The Head of Revenues and Benefits confirmed that Universal Credit would ‘go live’ on 6 December 2017 when the Single Fraud Investigation Service would become responsible for any fraud investigation.  A Member questioned whether customers were made aware of the penalties within the proposed policy and was informed that the Council was quite flexible in how it applied any penalties; if customers were upfront about their circumstances, and why there was a delay in reporting a change, then a more lenient approach might be taken whereas if it had taken a long period for the customer to come forward to advise of a significant change then the penalty might be harsher. In response to a query regarding a situation where fraudulent activity had been going on for several years, Members were advised that, when housing benefit fraud was investigated, anything over £3,000 would ultimately lead to prosecution; consideration was also given to prosecution if the customer had deliberately given false information.  A Member understood that there could be a long delay before people received Universal Credit and she queried what the Council’s policy would be if customers fell behind with council tax payments.  The Head of Revenues and Benefits explained that council tax support was awarded by the Council and it was far quicker to make a determination and award a discount under Universal Credit.  If customers were in real financial difficulty they could be given a two month period to make a payment towards their council tax. 

13.6           A Member questioned if there was any way of knowing how successful the Counter Fraud Unit had been in terms of getting money back for the Council and who was responsible for monitoring this. The Head of Finance and Asset Management advised that he received a monitoring report from the Counter Fraud Unit on a quarterly basis.  The Counter Fraud Unit had been quite successful in investigating business rates during the previous year and he expected this to continue as it expanded into areas which had not been considered in the past; the Counter Fraud Unit was a corporate resource and was looking into various activities beyond Revenues and Benefits, such as fly-tipping, with further plans to look at the HR and Planning services.

13.7           Having considered the information provided, it was

RESOLVED          1.   That the Counter Fraud Unit Work Programme 2017/18 be NOTED.

2.  That the Council Tax, Housing Benefit and Council Tax Support Penalty and Prosecution Policy be NOTED and the Executive Committee be advised that the Audit Committee had found it to be very clear and well set out.