A report by Northern Ireland’s Comptroller and Auditor General has found that levels of Housing Benefit fraud and error in Northern Ireland have increased.
The report by Mr Kieran Donnelly CB summarises the results of his audit of the 2020-21 Land & Property Services (LPS) accounts, which have received a qualified audit opinion.
£34.6 million of Housing Benefit was administered by LPS in 2020-21 to claimants who own their own home but who are on low income and suffering financial hardship. The levels of fraud and error, which are estimated by the Department for Communities Standards Assurance Unit, amounted to a total of £4.2 million, representing 12.1 per cent of total housing benefit expenditure. This is a 1.5 per cent increase compared to the 10.6 per cent recorded in 2019-20. While there has been a decrease in the levels of customer fraud, levels of official error have increased to £2 million (from £1.5 million in 2019-20).
Mr Donnelly commented:
“I recognise that over a number of years LPS has made considerable efforts to improve fraud and error rates. However, overpayments due to Official Error have more than doubled since 2019. While I am sympathetic to the unique and challenging circumstances LPS faced as a result of the Coronavirus pandemic in 20-21, I am concerned at this significant increase in error.”
Other findings noted in the report include:
- In 2020-21, LPS administered £7.1 million of rate rebate which is reflected in the financial statements, for claimants in receipt of Universal Credit. LPS estimated that the amount of fraud in error within these transactions to be 9.7 per cent of LPS total rate rebate expenditure (an increase from 7.2 per cent last year). The C&AG has noted that he will keep this matter under consideration in light of increased numbers of claimants becoming eligible for the Rate Rebate Scheme in the future. This increase is anticipated as a result of claimants due to migrate to Universal Credit from other benefit types, as well as new Universal Credit claimants, particularly due to the impact of COVID-19.
- The numbers of outstanding non-domestic valuations has increased with 8,868 cases outstanding at 31 March 2021 (5,472 cases at 31 March 2020). There has also been a rise in the number of domestic cases outstanding, 17,510 at 31 March 2021 compared to 12,580 at 31 March 2020. The estimated impact on the rate revenue figure of the outstanding domestic and non-domestic caseload at 31 March 2021 is £10.6 million. This is an increase of £2.7 million from 31 March 2020. This has been attributed to disruption to normal rating valuation operations as a result of lockdown measures.
- The level of ratepayer debt increased to £152.7 million at 31 March 2021 (from £124.4 million at the end of 2019-20). Debt written off in year was £5.1 million and impaired debt, which is unlikely to be repaid in full, amounted to £51.8 million at 31 March 2021. The significant increase of ratepayer debt is due to LPS’s suspension of legal recovery action in 2020-21 due to restricted access to the courts service, another consequence of the pandemic. LPS has recently implemented a 3-year Post Pandemic Rating debt recovery strategy, with a view to returning ratepayer debt to 2019-20 levels, and the C&AG will review progress on this strategy as part of his 2021-22 audit
ENDS
The financial statements of the Land and Property Services Trust Statement (Rate Levy Accruals Account) for the year ended 31 March 2021 are available on the Department of Finance website.
Notes for Editors
- A copy of this report is available on the Northern Ireland Audit Office website at www.niauditoffice.gov.uk.
- The Comptroller and Auditor General is Head of the Northern Ireland Audit Office (the Audit Office). He, and the NIAO, are totally independent of Government. He certifies the accounts of Government Departments and a range of other public sector bodies. He has statutory authority to report to the Assembly on the economy, efficiency and effectiveness with which departments and public bodies use their resources. His reports are published as Assembly papers.
- Background briefing can be obtained from the Audit Office by contacting Suzanne Walsh (028 9025 1021).