Councils must work together more effectively if the Department for Work and Pensions is to meet its housing benefit fraud reduction targets, according to parliament's public spending watchdog, writes Chloe Stothart.
A report from the National Audit Office has highlighted £500m lost each year in housing benefit fraud – a quarter of all benefit fraud.

The DWP's target is to reduce the level of fraud and error on housing benefit 25% by 2006.

However the NAO's report highlighted "significant deficiencies in the standards within some local authorities" which could stop the department meeting the target.

It said the department should ensure more effective joint working between councils and the department's regional directors.

It also criticised the reduction in investigation of benefit fraud, which slumped 12% between 2000/01 and 2001/02. It was unclear why the number of investigations had decreased.

The report comes just days after NAO head Sir John Bourn warned the DWP it would have to reduce fraud to around £1bn to avoid reservations over its accounts in the future.

Sir John had just approved the DWP's latest accounts with reservations because of gaps in evidence. DWP permanent secretary Sir Richard Mottram will be questioned about his department's accounts and fraud figures by parliament's Public Accounts Committee in March.

Sir John said:"Among other actions the department should continue to concentrate on areas of higher risk, address the decline in the fraud prevention and investigative activity, and evaluate the deterrent effect of the different sanctions available."

Edward Leigh, chairman of the Public Accounts Committee, said: "The department does not have up-to-date measurements of the amount of fraud being carried out against a range of other benefits. Some benefits have not been looked at for nearly six years."

In response to the report, work and pensions minister Malcolm Wicks said the department had made "excellent progress in winning the fight against fraud and error".

He added: "We have reorganised the way staff tackle benefit fraud, providing a more professional and intelligence-driven investigation service. We've given investigators new powers and set ourselves tough targets."

Source

Housing Today