Issue - meetings

That the proposed Risk Based Verification Policy be supported.

The Revenues & Benefits Manager introduced the report to seek views on the proposed Risk Based Verification (RBV) Policy for the administration of Housing Benefit.

The aim of the Policy was to improve the verification process of benefit claims and ease the administration burden.  A successful pilot had resulted in all Councils being invited to adopt the RBV approach which had been approved by the Department of Work & Pensions (DWP).  The RBV software allowed claims to be input through the Civica system and assessed through a matrix which identified potential cases of fraud/error and calculated a predicted risk status of Green (low), Amber (medium) or Red (high).  DWP guidelines had identified risk groups as 52% Green, 27% Amber and 21% Red.  Claims in the Green group would benefit from an estimated 10% reduction in processing time, however assurance was given that claimants in the Red group would still be required to provide all current verification evidence with confirmation of details provided verbally, preferably by telephone or alternatively face to face.  The initial cost and annual maintenance charges for implementation of the system were reported, noting that a reduction in postage costs and employee time would amount to an estimated annual £30K saving from 2015/16.

In response to questions from Councillor Ian Dunbar, the Revenues & Benefits Manager explained that the RBV process would enable claims to be processed quicker to benefit claimants and reduce the time for landlords to receive their payments.  The system was intended to speed up operations safely to benefit all concerned and had been proven to work effectively during a pilot.  When asked about alternative options to addressing maintenance costs detailed in the report, it was stressed that the Wales Audit Office (WAO) would need to be assured of safety levels and may call in question any deviation from the DWP approved process.

Whilst Councillor Arnold Woolley welcomed this simplified approach, he asked about contractual liabilities for the Civica software.  The Revenues & Benefits Manager replied that a six month cancellation clause was available within the 12 month contract.

In response to a query from Councillor Glyn Banks, the Revenues & Benefits Manager stated that no increase in fraudulent claims had been reported by the three Councils participating in the pilot.  When asked about the potential for monthly reporting as part of the annual maintenance costs, it was advised that reports would be made available on the percentages of high, medium and low risk claims.

Councillor Haydn Bateman sought clarification on the propensity model which defined the profiles of risk groups.  The Revenues & Benefits Manager said that exact information was not known as this was confidential, however the model had been based on extensive historical data provided by the DWP and this approved model would help to safeguard the Council’s subsidy.

RESOLVED:

That the proposed Risk Based Verification Policy be supported.