To consider the outcomes of the data matching exercise. 

48.1           The report of the Revenues and Benefits Group Manager, circulated at Pages No. 120-123, informed Members of the outcomes of the National Fraud Initiative data matching exercise.  Members were asked to consider the report.

48.2           The Revenues and Benefits Group Manager advised that the National Fraud Initiative (NFI) matched electronic data within and between public and private sector bodies to prevent and detect fraud.  The NFI had helped to trace almost £203M in fraud, error and overpayment in England in the 2012/13 exercise, bringing the UK total since its launch in 1996 to £1.17 billion.  Public sector bodies were required to submit data to the NFI on a regular basis in order for it to be cross-checked against other government departments and other organisations’ databases.  The exercise focused mainly on checking the correct eligibility for single person discounts and ensuring that housing benefit recipients had reported changes in circumstances. 

48.3           The 2014/15 data matching exercise on Council Tax single person discount had been completed and had made 525 matches and identified 99 ineligible awards with over-claimed discount amounting to £32,512.81.  82 Council Tax matches had been made identifying where a resident had reached the age of 18 with 25 ineligible awards being found amounting to £7,542.17 of over-claimed discount.  The outcomes showed a fall in the number of incorrect awards of single person discount compared to the last review; previously the total number of ineligible discounts was 176 with a total of £59,492.45 over-claimed discount.  During 2014/15, the total value of awards for single person discount amounted to £3,822,576.74 with the total number of single person discount claims amounting to 12,083.  The amount found was relatively small in value, although it was important that the discounts were checked to ensure that those who were eligible to receive the award continued to receive it.  The average over-claim in 2014/15 amounted to £323 per case.

48.4           Going forward, the Council was working with the newly formed Counter Fraud Hub which was made up of a consortium of local authority staff, backed by the districts in Gloucestershire.  The Hub would be carrying out a major review of single person discount awards during 2016 and a review form would be sent out with the annual Council Tax bills.  Staff from the Hub and the Borough Council would be carrying out checks on the returned forms and on the latest matches received from the NFI to ensure that awards had been correctly made.  Throughout 2015, staff had carried out checks on matches provided by the NFI on housing benefit claims and, of the 589 matches, 535 had been cleared with 16 frauds and 41 claimant errors identified resulting in overpayments of £59,878.67.  The fraudulent claims had been passed to the Department of Work and Pensions and the outcome of their investigations was awaited.  It was noted that there was a caseload of 4,079 claims and housing benefit awards totalling £19M; the exercise in itself did not establish a significant amount of fraud in error but it was important to ensure that claims were accurate and awards were appropriately made.  The Revenues and Benefits team made every effort to collect the arrears created through both exercises and, where payment was not made, enforcement action was taken and would result in cases being taken to court.

48.5           A Member questioned how many cases were taken to court and how many were won by the Council.  The Revenues and Benefits Group Manager explained that the Council had not been liable for any overpayments on single person discount and no appeals had been made in relation to housing benefit overpayments.  The cases tended to be very clear cut, however, there was always an option to take court action.  In relation to a query regarding single person discount, Members were advised that approximately 9,000 review forms had been issued but the response so far had been very poor.  In many cases people stated that they had just moved into the property and that would be monitored going forward.  A Member raised concern regarding assured short hold tenancies which were in one name but where there could be several people living in the property.  The Revenues and Benefits Group Manager explained that Council Tax was assessed on the number of people living in the property and when information was provided by letting agents to advise that someone had moved in, Officers always asked for information about any other joint tenants or occupiers as there was an obligation to include them on the Council Tax bill.  This information was not always forthcoming and it required quite a lot of work from Officers.  In response to a query as to what was being done to recoup overpayments, Members were advised that the Council received a 40% housing benefit overpayment subsidy from the Government for every overpayment.  The Council Tax collection rate was very high at around 98% which indicated that Officers did work hard to ensure that payments were made and money collected.  A Member questioned whether overpayments were claimed back from tenants or landlords where properties were rented out and was advised that, whilst it was possible to claim from the landlord, there were strict rules about when that could be done and the vast majority of the cases went to the claimant.

48.6           Having considered the information provided, it was

RESOLVED          That the outcomes of the data matching exercise be NOTED.