Fraud strategy

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Contents

• Introduction
• Background
• Aims
• Resources
• Approach to tackling fraud and error
• Overarching objectives
• Understanding the nature and extent of the problem
• Raising awareness
• Deterring fraud and error from the outset
• Sanctions
• Redress
• Publicity
• Monitoring Arrangements
• Appendix A

Introduction

Wiltshire Council expects the highest standards of conduct and integrity from all who are employed by it, represent it, or have dealings with it. Our Anti Fraud and Corruption Policy reinforces the culture and tone of our organisation which embodies an opposition to fraud and corruption. This commitment to combating fraud and corruption includes the secure administration and delivery of Housing Benefit and Council Tax Benefit, which forms a significant area of expenditure for the council.

The overwhelming majority of people claiming welfare benefits in Wiltshire are honest law abiding citizens. This stratergy is directed towards the small minority who commit benefit fraud and by their actions steal from the taxpayer and reduce the funds available to those who genuinely need help. The strategy also seeks to reduce incorrect benefit payments in the system by smarter working and changing customer behaviour particularly in relation to the reporting of changes that may impact on the level of benefit awarded.

Background

In April 2009 the former Wiltshire District Councils and the Wiltshire County Council become a Unitary Authority. Prior to this date each of the district councils held individual responsibility for delivering the Housing Benefit and Council Tax Benefit Scheme. Following the merger of the five councils a single Corporate Anti Fraud and Corruption Strategy was developed together with a common sanction and prosecution policy.

This document is intended to:

• support the corporate anti fraud strategy
• provide guidance for operational staff tasked with tackling fraud and error
• describe how the Council will meet its commitment to minimise fraud and error
• support the benefit fraud sanction prosecution policy
• Support the benefit service plan and intervention strategy

This document replaces the four former Wiltshire district councils anti fraud strategies and will evolve over time to include other initiatives and other areas of work.

Aims

Our overarching aim is to keep fraud and error in the benefit system to an absolute minimum. The Council’s corporate plan sets out where we will prioritise our resources, money and people. Our vision ‘to create stronger and more resilient communities’ is supported by 3 key goals these:- to deliver high quality, low cost, customer focused services. The benefit service will provide a major contribution in terms of delivering the vision by increasing the income available to some of the most financially disadvantaged households in our communities. There is no doubt that reducing fraud and error will ensure benefit is directed to those who genuinely need help and that this is a key factor in the provision of a high quality, low cost, customer focused benefit service.

Resources

Investigation Team

The council will establish a dedicated investigation team lead by an Operations Manager and comprising of professionally trained investigators who will be supported by intelligence gathering officers. The Operations Manager will be responsible for prioritising and allocating referrals to the investigation team. All referrals will be assessed for quality of information and prioritised accordingly using a risk assessment scoring system.

Training

There will be a requirement for all Investigators to achieve a professional counter fraud qualification, in addition to this formal qualification investigators will receive ongoing ad hoc and refresher training as required. Investigation officers will ensure compliance at all times with the code of conduct for investigators and appropriate acts and legislation that are contained in annex A of this document. At the same time they will actively promote anti discriminatory practices in all their processes.

Fraud Management System

Investigators will use the Incase fraud management system to manage, monitor, and record cases under investigation. To ensure the counter fraud effort is effectively focused the Operations Manager will collect and analyse information held on the system to inform risk analysis and allocate resources.

Authorised Officers

The Chief Executive will appoint authorised officers from within the investigation team. These authorised officers will have the power of inspection under section 110 of the Social Security Administration Act 1992 (the current version was inserted by the Child Support, Pensions and Social Security 2000 with effect from 1 April 2001). Authorised officers will be able to inspect business premises and to interview persons who may hold information that has relevance to the Housing Benefit and/or Council Tax Benefit claim. They may also use the letters of appointment to make written enquiries. A code of practice governs the use of these powers and any abuse will result in disciplinary action.

Covert surveillance/Covert Human Intelligence Sources

The Regulation of Investigatory Powers Act 2000 (RIPA) was introduced to provide a statutory framework for certain investigative activities to enable them to comply with Article 8 of the Human Rights Act. If appropriate, investigators will use ‘directed surveillance’ or ‘covert human intelligence sources’ under RIPA in order to progress an investigation. Procedures and guidance in respect of delegated powers under RIPA can be found on the council’s website at on the Regulation of Investigatory Powers Act 2000 (RIPA) page.

Approach to tackling fraud and error

The Council will adopt a holistic approach to tackling fraud and error covering:

• Prevention
• Detection and investigation
• Sanction and redress

Overarching Objectives

The section outlines the overall objectives of our strategy. Delivery of our objectives has been expressed as actions within our benefits service plan:

• Understanding the nature and extent of the fraud problem
• Deterring fraud and error from the outset
• Promptly detecting fraud and error which cannot be prevented
• Effective sanctions including criminal proceedings against people committing fraud
• Full redress in respect of money overpaid

Understanding the nature and extent of the fraud problem

Gaining a better understanding of the nature and extent of the threat from fraud and error facing the benefit service will help to facilitate effective targeting of resources, inform the setting of future targets and measure the effectiveness of our strategy

DWP measurements of fraud and error in the Housing Benefit scheme estimate that in 2008/09 approximately 4.9% of overall expenditure may have been overpaid due to fraud and error. It is estimated that in 2009/10 Wiltshire council will administer Housing benefit and/or Council Tax Benefit to over 30,000 households at an annual cost of in excess of £100 million, within this level of expenditure DWP estimates suggest levels of fraud and error could be almost £5million.

A Key action for 2010 contained in our benefit service plan will be to gain a better understanding of the nature and extent of fraud and error in the benefit system by:

• Monitoring and evaluating various proactive initiatives
• Reviewing and analysing the causes of fraud and error
• Estimating the extent of fraud and error within the system.
• Evaluating defences and adjusting them in the light of experience.

Raising Awareness

Staff Training

Fraud awareness is an essential element in the prevention and detection of fraud, the importance of vigilance and support amongst those staff involved in the administration of the benefit scheme cannot be underestimated. Members of the benefits team will receive fraud awareness training when they join the council and annually thereafter to help them understand the fraud threat and to ensure they know how to refer any suspicions of fraud to the investigation team

Partner Organisations

Fraud awareness training will also be provided on a rolling programme to a range of organisations and stakeholders including registered social landlords, with the focus very much on their duty to report changes in their clients circumstances.

Deterring fraud and error from the outset

The most effective method of delivering an efficient, high quality low cost benefit service is to prevent fraud and error entering the system in the first place. By March 2008, it was estimated that nationally over £720 million of Housing Benefit was overpaid.

Deterring fraud and error from the outset is a key element of our approach we have and continue to make the benefits gateway more secure while taking steps to ensure that legitimate claimants are not denied access to the benefit system.

The council is committed to ensuring that those entitled to benefit receive accurate, prompt awards by actively encouraging customers to report changes in their circumstances that if left unreported would lead to overpayments. Other measures to reduce the level of fraud and error entering the system include:

• Adopting robust processes for verifying claims
• Raising customer awareness about requirement to report changes
• Simplifying the claim process (system thinking in delivery of benefit service)
• Ensuring staff involved in the administration of benefit are adequately trained and maintain the highest standard of probity – including completion of staff declaration
• Identifying areas that are susceptible to abuse and make recommendations with regard to making systems more secure
• Publicise reporting of changes

Promptly detecting fraud and error which cannot be prevented

No matter how secure the gateway fraud and error will be present in the system, detecting when payments go wrong and taking prompt action to correct them is therefore of paramount importance. Measures to detect fraud and error will include:-

Fraud Hotline

The council will actively promote a benefit fraud hotline in order to encourage members of the public to report anyone they suspect of committing benefit fraud. The hotline will be advertised in Council literature as well as the website and local press. The website will include an online form to report suspicions.

Referring suspicious cases to the fraud teams

The council will have a standard referral form that will allow staff involved in

the administration of benefit to refer cases for investigation. The form will be user friendly and include prompts to ensure all relevant information is captured. Induction and refresher fraud awareness training for staff will incorporate advice and information on referring cases. Feedback will be provided in all instances to staff on outcome of their referrals

Data Matching

The council is committed to the exchange of information in order to detect fraud and error. At the same time it will ensure the law on data protection and the rules of confidentiality are strictly observed at all times. Appropriate steps will be taken to notify data subjects that their data may be used for the prevention and detection of fraud.

The council will actively participate in a range of data matching initiatives including the Department for Work and Pensions (DWP) matching service and the Audit Commissions National Fraud Initiative. Alongside these nationally recognised data matching initiatives the Council will explore other opportunities for sharing information in order to detect fraud and error.

‘Do Not Redirect’ (DNR) Service

Wiltshire council uses easily identifiable envelopes marked ‘Do Not Redirect’ to their benefit customers. If the customer has asked the Post Office to redirect his or her mail for any reason, the mail will be returned to the Council for further investigation.

Working in partnership

The council will continue to actively participate in joint investigations and fraud drives with other organisations including the Department for Work and Pensions, Police, Revenue and Customs.

Reporting Changes Reminders

The Council will take every opportunity to remind and educate customers about their duty to report changes. Reminders will be included on council literature including letters, payment advice and leaflets.

Sanctions

Where suspected cases of fraud have been investigated, and sufficient evidence has been obtained to sustain a prosecution, the Council will seek to impose one of the following sanctions:

• A local authority caution
• An administrative penalty
• A prosecution

The Council operates a comprehensive sanction policy which sets out the council’s policy towards prosecution and the other sanctions available for benefit fraud offences. The policy also serves as an operational guide to ensure a consistent and fair approach to the application of sanctions. The full sanction document can be found online.

Redress

The council will refer all suitable cases for financial investigation with a view to

applying to the courts for restraint and/or confiscation of identified assets under the Proceeds of Crime Act 2002. (for offences prior to 23/03/03 CJA 1998). Note: Relevant legislation and guidance can be found on the Home Office website. A restraint order will prevent a person from dealing with specific assets. A confiscation order will enable the Council to recover its losses from assets which are found to be from the proceeds of crime.

Where an overpayment arising from fraud or other reasons such as claimant error the council will take steps to recover the resultant debt, including taking action in the Civil Courts if necessary, this will be in addition to any sanction it or the Criminal Courts may impose in respect of fraud cases.

Publicity

Where the Council has successfully prosecuted a customer for benefit fraud the fraud investigation Service will seek to publicise the conviction through local press in conjunction with the Councils communication team. The Council will also make available and provide publicity leaflets and posters to emphasise its commitment to combat fraud and error.

Monitoring Arrangements

The council will monitor the Investigations Team’s performance against the Anti Fraud Strategy and service plan via monthly reports to the Head of Finance. The Benefits Manager will provide monthly reports that will include:

• Performance compared to previous year
• Type of fraud identified
• Value of overpayments identified
• Number of investigations undertaken
• Number of successful investigations
• Number of sanctions applied
• Feedback on proactive initiatives

Appendix A

Criminal investigations are governed by legislation with no undue delay and within specified procedures as laid down in:

• Criminal Procedure and Investigations Act 1996
• Data Protection Act 1998,
• Human Rights Act 1998
• Criminal Justices Act 1988
• Police and Criminal Evidence Act 1984
• Regulation of Investigatory Powers Act 2000
• Social Security Administration Act 1992 (time bars on some offences)

Review date September 2011

Last updated: 27 January 2011