Councillor Maureen Davis stated this item was not a confidential item as previously stated.
Geoff Kent, Head of Customer Services, presented the Anglia Revenues Partnership (ARP) - Single Fraud Investigation Service (SFIS) and Counter Fraud report and informed Members that:
- The Benefit Fraud teams at five ARP partner authorities (Breckland, East Cambs, Fenland, Forest Heath and St Edmundsbury) were combined and have worked as a single team since April 2014. Suffolk Coastal and Waveney (the two other ARP partners) have corporate fraud teams that are outside of the scope of ARP;
- The Welfare Reform Act 2012 led to the creation of the Single Fraud Investigation Service to combine present arrangements for the investigation of benefit fraud which will be brought together under one organisation (the Single Fraud Investigation Service of "SFIS") managed by the Government's Department for Work and Pensions (DWP). This means that all benefit fraud work in respect of Fenland will transfer to DWP from 1 September 2015;
- There will be a residual fraud team at ARP. This was agreed by ARP Joint Committee at its meeting on 10 March 2015;
- Benefit Fraud staff not placed within the residual ARP team will transfer under existing terms and conditions to the DWP SFIS team on 1 September 2015.
Councillor Murphy asked if there could be a breakdown of Fenland District Council's savings and costs to which Rob Bridge replied that there were figures within the table at 2.1 within the report and this was driven by government statistical information; the £320,000 is for all the partners but achieving less fraud will in turn mean more Council Tax monies coming into the Council.
Councillor Murphy asked what the cost was of the two fraud investigators currently in post to which Geoff Kent replied approximately £70,000. Geoff Kent explained that the ARP costs are pooled and shared across the partners. These changes will not create an additional cost to the Council; it was agreed at joint committee that the surplus from the previous year would be used first and therefore giving the service a chance to become a success. Several smaller councils are struggling with this and therefore the ARP have agreed, with further work, to set up a trading arm of ARP and offer these services to other district councils which in turn would bring in additional income to ARP and therefore to Fenland District Council.
Councillor Murphy asked for a breakdown of costs to be included in the next report that comes to Staff Committee. Rob Bridge stated that costs would be monitored as there was a need to ensure that the fraud team generates enough fraud success that the money it brings in will pay for itself. This report has already been to Cabinet and has now been presented to Staff Committee for information.
Councillor Seaton added that Fenland District Council joining the ARP has been extremely successful and something that had to be done; at the moment it is based on a cost neutral fact with the progression of a trading arm that will allow the Council to sell its services to other councils which is a big part of its future.
Councillor Mason stated that a saving of £137,000 had been made but the estimate for the coming year was now £320,000; this was a considerable hike up. Rob Bridge explained that the £137,000 was Fenland joining the ARP and a change in management structures and arrangements; the total was in fact £274,000 with Fenland keeping half. Now there were further savings shared out on an agreed percentage; these saving are estimates and are about identifying fraud, again driven by government statistics but as the system roles out there will be a clearer focus on this.
Councillor Butcher asked if Fenland would receive savings from the bailiff services that were being set up to which Rob Bridge replied that Fenland would see these savings; the joint committee has a responsibility to manage these and the Council report these through portfolio holder briefings or committees. There is a team in place to deliver the bailiff service that was agreed by Council and these will start when the next set of summons are sent out; this will enable Fenland to have a better relationship with those concerned and give them the opportunity to discuss options with a trading arm that will allow Fenland to offer this service to other authorities. In the past be bailiff services have upset the people involved and this will allow Fenland to deal with these issues in the right way so not to cause problems.
Councillor Mason asked when would an issue be considered as fraud as opposed to avoidance to which Geoff Kent explained this was driven by legislation which determines whether non-compliance was deliberate or not intentional but in this case it was usually people fraudulently claiming reductions.
Councillor Booth asked if the Council would be taking a proportionate approach to which Geoff Kent explained that this was already done with an immediate priority to stop giving a reduction when there is no entitlement to it and then arranging repayment. All avenues are looked at and each case is looked at on its own merits. Rob Bridge stated that most of the time fraud is not committed on one aspect, it usually involves council tax, housing benefit etc and therefore the Council's dialogue and communication is important; resulting in a joint prosecution and sending out a clear message.
Councillor Booth asked if the figures in the report at 2.1 were additional monies over and above what had already been recovered to which Rob Bridge stated in essence, this was the case; last year had resulted in a surplus and this will help but it was difficult as it was not a definitive. Geoff Kent stated it was a "broad brush approach" from the government which did not take into account local circumstances. There was a pot for additional income but the exact amount would be difficult to quantify; the Council constantly look at precenting fraud by tightening up procedures before any reductions are awarded.
Councillor Booth stated that unless working practices were changed then how would the amount recovered be increased; would there be a full review of the processes. Geoff Kent explained that the Council constantly reviewed its processes with all applications being looked at; the advantage of seven authorities was that a lot more experience could be pulled together.
Councillor Booth asked if those staff that were transferring to the DWP would have to relocate to which Geoff Kent explained that they would be based at the Job Centre in Wisbech.
Councillor Yeulett stated he liked the idea of prevention at the beginning of an application. He was concerned about those staff transferring being at a loss with regard to their pensions. Rob Bridge stated he did not know the details of the civil service pension but it must be of the same nature that staff already have. Sam Anthony added that it was her belief that it was non-contributional and deemed to be a good pension.
Councillor Davis asked if those affected staff had been given pension advice to which Sam Anthony stated they had been given access to the pensions teams. Geoff Kent explained that there had been a lengthy information sharing process with all affected staff, with an opportunity to raise concerns across all authorities; DWP had also held workshops. Fraud investigators are an active community and therefore were up to speed as to what this would mean to them. Sam Anthony added that this process had been at least 18 months in the making and therefore all staff were aware of the changes.
Rob Bridge stated that Fenland's pension was a career average scheme from April 2014 but he was not sure of the details of the civil service pension. Sam Anthony explained that staff had been given directions on where to go for advice but individuals would have had to request pension illustrations to which Councillor Booth stated this was different to other organisations that automatically sent out pension illustrations.
Councillor Butcher asked how many Fenland staff this affected to which Geoff Kent explained that just two full-time staff were from Fenland with six full-time and one part-time from Thetford.
It was AGREED that the report be NOTED.