Send this page to a friend

Anti-fraud strategy

Statement of intent

Bridgnorth District Council is committed to the secure delivery of Housing Benefit and Council Tax Benefit to its community.

Benefits are for those who are most vulnerable in society and should be assessed and paid in line with Government guidelines.

We are committed to ensuring customers get the benefits to which they are entitled.

However, we acknowledge that some people will attempt to obtain benefits to which they are not entitled. Sometimes this is done with planning and intention.

This Strategy Statement and Prosecution Policy represents a commitment by the council to implement a robust anti-fraud strategy in order to protect public funds and to ensure that benefits are delivered to those who have a true entitlement to them.

However, when intention and planning of benefit fraud is involved, then the council, through our delegated officers, will consider the circumstances of the individual and, where appropriate, will consider prosecution.

Roles, resources and responsibilities

The Benefit Section is responsible for the administration and payment of Housing and Council Tax Benefit.

It provides benefit investigation staff with responsibility for prevention, detection and, where appropriate, prosecution of those who seek to perpetrate benefit fraud. This will be conducted under the direction of the Head of Revenues.

The Chief Executive, on the recommendation of the Director of Resources and/or the Head of Revenues will designate the Fraud Officer(s) as Housing Benefit Inspector(s).

Such Inspectors will have the power of entry and inspection under Section 110 of the Social Security (Administration) Act 1992.

The Chief Executive will ensure that appointed officer(s) are right and proper persons and issue letters of appointment which will last no more then one year, carry the full name of the appointee and the start and end date of the appointment.

Additionally, the appointment will carry the council's logo and contact name and telephone number for verification as to the status and capacity to act as the officer.

Any officer so designated will use the appointment to inspect business premises and to interview persons who may hold information that has relevance to a claim of Housing and/or Council Tax Benefit.

Any abuse of these powers will result in the officer being dismissed from the employment of the council.

Action on overpayments of Benefit

In some instances, benefits or extra benefits will have been obtained from the council where there is no entitlement, for example due to a change in circumstances.

This may have been done without planning, but with knowledge that the change should have been reported to the council.

Under these circumstances, delegated officers will consider the particulars of the individual case and, where the claimant could reasonably be expected to know that the failure to report the change in circumstance would cause a fraudulent overpayment of benefit, will consider prosecution under the relevant provisions of the Social Security (Administration) Act 1992.

Where appropriate, consideration will be given to applying a 30% overpayment penalty (known as an administration penalty) or issuing a local authority caution.

In some circumstances it is not in the public interest to take action against a person who has made either a false claim, or has failed to report a change in circumstances which has resulted in them obtaining benefit to which they were not entitled.

Under these circumstances recovery of the overpaid benefit will be sought. It would not be the council's intention to place the customer into hardship, but failure to conclude a reasonable arrangement for repayment may result in the council taking civil recovery action through the courts.

Action on overpayment of Benefit to landlords

Payments of benefit are often made to landlords on behalf of the customer. In some cases, landlords falsify claims or assist customers to falsify claims for benefit. Landlords who commit an offence under the Social Security (Administration) Act, 1992 will be prosecuted.

Additionally, landlords who are receiving benefit directly are obliged to report any change in circumstances (where such a change is known to the landlord).

When a landlord fails to report such a change they may be paid more benefit than to which they have a right.

Where an offence has been committed a prosecution will be considered under the relevant provisions of the Social Security (Administration) Act, 1992 and the overpayment will be recoverable either directly from ongoing payments of benefit or through civil recovery proceedings.

Prosecution proceedings will be brought against any person involved in planned fraud involving more than one person.

Where appropriate, use will be made of the powers granted under the Social Security (Fraud) Act 1997, namely, the powers of inspection and the power to obtain information from landlords.

Working in partnership with other organisations

We will work in co-operation with other organisations such as the Department for Work and Pensions (DWP), Citizens Advice Bureau (CAB), Police, Home Office, Inland Revenue and Customs and Excise in order to combat benefit fraud.

Data Protection

We will maintain our registration under purpose 058 of the Data Protection Act 1998. When required, and only where required, the council will use exemption 28 in order to protect those organisations who may have information to supply to the council which assists in the investigation of fraud.

Use will be made of data matching provisions, both internally and externally. The council is committed to the use and continuing development of the DWP Housing Benefit Matching Service (HBMS).

Duties and consideration of Designated Anti-Fraud Officers

When investigating fraud, designated officers will work within the guidelines of the Police and Criminal Evidence Act, (PACE). At all times, officers will apply appropriate procedures to maintain confidentiality.

It is the duty of officers to investigate all referrals of suspected or alleged fraud and to establish the facts of each case.

Duties and considerations of all council employees

We will require all officers to report to the Director of Resources or the Head of Revenues, details of any property that they are renting to tenants and any claims of benefit to which they have some connection.

This may be a claim of benefit where the officer is the landlord, the claimant, a partner, dependant or non-dependant identified in the application.

Officers involved in benefit administration will additionally be required to report to their Senior Officer, the Director of Central Services and/or the Revenue Services Manager, knowledge of a claim where they are a close family member, as described by Schedule 2 of the Housing and Council Tax Benefit (General) Regulations 1987.

Any council officer found to be involved in an offence under the Social Security Act 1992 or any other criminal offence involving claims of benefit, whether involving Bridgnorth District Council or any other benefit administering Authority will be subject to disciplinary proceedings and/or dismissed from the service in addition to any prosecution proceedings that may occur.

Where any officer investigating fraud abuses their powers, an investigation will take place with a view to taking disciplinary action.

Duties amd considerations of Elected Members

We will require all elected members to report to the Director of Resources and/or the Head of Revenues details of any property that they are renting to tenants and any claims of benefit to which they have some connection.

This may be a claim for benefit where the Member is the landlord, the claimant, a partner, dependant or non-dependant on the application/claim.

Cases of internal fraud

The Chief Internal Auditor and the Head of Revenues will deal with internal fraud by staff.

The Chief Internal Auditor and the Director of Resources will deal with disciplinary procedures for staff that have committed fraud.

Benefit administration and counter-fraud action

We believe it is important to prevent fraud from taking place in the first instance.

The council will adopt rigorous procedures for the verification of claims. However, although claims will be subject to close scrutiny, the council is committed to delivering benefit within official guideline timescales.

Assistance will be given to claimants of benefit in completing and applying for benefit and to maximise take-up.

The Housing/Council Tax Benefit claim form will be regularly reviewed to ensure that it asks plain language questions that help the claimant in obtaining benefit.

At the same time, the application form will make it clear to the customer that misinformation will not be acceptable and could result in the claimant being prosecuted.

Mandatory questions will need to be answered by the claimant or their agent. Failure to respond to a mandatory question will result in the claim form being returned to the customer.

We will put into place systems that will allow the customer to request assistance in the completion of their application form and to inform the council of changes to their circumstances.

Surveillance Code of Practice

Surveillance is an intrusion into the privacy of the customer. We will not undertake surveillance unless it is necessary, proportionate to the alleged offence and properly authorised.

Where there is an alternative means of obtaining information that is less intrusive on the rights of the customer, we will always take an alternative course rather than undertake surveillance.

Surveillance will be conducted within the constraints of the authorisation. It will cease when evidence sought has been obtained or when it becomes clear that the evidence is not going to be obtained by further surveillance. At this point authorisation will be cancelled.

In every instance surveillance is authorised the officer who conducts the surveillance will consider and make plans to reduce the level of collateral intrusion into the privacy of third parties.

All outstanding surveillance authorisations will be reviewed at regular intervals and cancelled where there is no need for surveillance.

All officers in applying for, authorisation or undertaking surveillance will understand the legal requirements set out in the Regulation of Investigatory Powers Act 2000 and the code of practice. They will personality take responsibility for ensuring the propriety of their involvement.

All authorisations, notebooks, surveillance logs and other ancillary documentation that relates to surveillance will be maintained to the required standards for three years. All documentation will be volunteered for any management of regulatory inspection on demand.

Any failure of any part will be brought to the attention of the Head of Revenues.

Willful disregard of any part of this surveillance code or of other internal procedures will be dealt with in accordance with Council policy.

Summary

• The council is committed to ensuring that people get all benefits to which they are entitled.
• The council will act against those people who systematically obtain benefits to which they are not entitled
• Any benefit obtained to which a customer is not entitled will, wherever possible, be recovered in full. However, the council will take care not to place anyone into hardship
• The council will respect the civil liberties of all persons involved in an investigation of alleged fraud.

Prosecution policy

Bridgnorth District Council is committed to protecting public funds through our action against fraud.

Where evidence that a claimant of Housing and/or Council Tax Benefit has been involved in perpetrating a fraud against the council and sufficient evidence exists to sustain a prosecution with a realistic prospect of conviction, then the Head of Revenues Services will first consider, on behalf of the council, whether it is in the public interest to undertake a prosecution.

The Public Interest test

The council may consider the option of prosecution more likely if:

• The offence was deliberate and not caused by a genuine mistake or misunderstanding
• There is evidence of collusion
• The defendant was a 'ringleader' or organiser of the alleged offence
• The defendant was in a position of trust or authority
• The defendant has previous convictions for similar offences

The council may consider the option of prosecution less likely if

• The loss to the council was minor
• There was no planning involved in the process
• There was/is a significant delay in the offence being committed and the prosecution being brought (unless its complexity has warranted a lengthy investigation, or the delay has been caused by the defendant)

The above criteria are not exhaustive and do not cover all situations. Consideration will also be given to the personal circumstances of the defendant such as age and/or physical and mental health.

Formal cautions

The council may use cautions as an alternative where it is felt prosecution is not in the public interest for cases such as

• The claimant has no history of benefit related fraud
• The amount involved was insufficient to merit a prosecution in the public interest

Our Head of Revenues, Benefits Officer, Investigations Officer, and Benefits Team Leader will administer formal cautions. A caution will only be administered where there is sufficient evidence to sustain a prosecution and where there is a signed admission of guilt by the offender.

The council will consider prosecution if the defendant refuses to accept a formal caution.

Formal cautions are not recorded as a criminal offence.

Administrative Penalties

We may use Administrative Penalties as an alternative to prosecution in such cases as

• It was the first time the claimant had caused a fraudulent overpayment
• There was no planning in the process

There must be grounds for criminal proceedings and sufficient evidence to justify court action, but prosecution is not considered the most appropriate action. However, an Administrative Penalty cannot be offered where it is considered that a prosecution would be unlikely to succeed.

An Administrative Penalty is a financial sanction equivalent to 30% of the benefit overpayment. This is in addition to the total overpayment of benefit which is also recoverable.

Administrative Penalties can only be offered by the council's Head of Revenues, Benefits Officer, Investigations Officer, and Benefits Team Leaders.

We cannot impose an Administrative Penalty and the claimant is under no obligation to accept it. However, once a claimant has accepted a penalty he/she has 28 days in which to withdraw their decision.

Once a person accepts a penalty, he/she is then immune from criminal proceedings on that particular charge. If the penalty is not paid, the customer will be pursued through action in the County Court.

Administrative Penalties are not recorded as a criminal offence.

Department for Work and Pensions (DWP) Guidance

Though no monetary value as been stated within this policy above or below which sanctions will be considered. Guidance will be sought from the current DWP amounts when a decision is being made.

Investigation of cases

During the course of an investigation all staff will routinely

• Establish the facts in every alleged or suspected case
• Gather sufficient admissible evidence
• Remain impartial to every investigation and conduct the investigation with fairness, tact and discretion
• Operate in accordance with the provisions of the Police and Criminal Evidence Act 1984, European Convention of Human Rights 1998 and the Regulation of Investigatory Powers Act 2000
• Record and file their investigation work safely and securely
• Comply with all statutory Data Protection requirements and treat all findings, records and documentation securely and confidentially
• Operate in accordance with the provisions of any relevant Council regulations, policies and codes of conduct
• Operate in accordance with the provisions of any relevant council regulations, policies and codes of conduct
• Act at all times in accordance with this policy

This policy and strategy is reviewed annually as part of the Service Review Process.