News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 1999 issue RPI news archive

New calls for reform of housing benefit - June / July 1999

Abuse of housing benefit 'remains one of the major probity issues for central and local government', concluded the audit Commission when publishing an update of a previous enquiry into fraud and lodging.
The report adds further pressure for reform of the system which the Government has already labelled a 'disincentive to work' and 'extremely complex'.
Over 4m households (and almost 5m people) in England and Wales now receive housing benefit at a total annual cost of over £11bn, said the Government's auditor.
'Detected fraud reached £78m in 1998, but research suggests that around £840m is haemorrhaging from public funds due to both fraud and error', it reported.
But the situation was improving. Just under half of councils had established corporate anti-fraud strategies ('essential in promoting a culture that supports anti-fraud work'), and investigation units were increasing in size - the average is now four investigative officers per council). But housing benefit administration was still poor in 44 per cent of councils while 'too many' were experiencing fraud perpetrated but officers and members.
Welcoming the report Secretary for Social Security Alistair Darling pointed to recent measures to combat housing benefit fraud including working in partnership with the Royal Mail so that 'specially marked benefit mail will not be redirected but sent back to the issuing local authority, to prevent fraud through multiple addresses', and allocation of £100m over the next three years to enable local author ities 'to carry out tougher checks and reviews on housing benefit claims'.
The Chartered Institute of Housing welcomed the NAO's call for simplifications to the system.
'General allegations aimed at benefit office staff or claimants merely provide a convenient distraction from the bigger picture which is a much needed overhaul of the entire system', it said.
 

other artilces from the June / July 1999 issue

• Bottom line reality
• In brief
• New calls for reform of housing benefit
• Most shared houses will be regulated
• Landlord is unable to recover costs
• Manchester has lowest prices