Decision details

The Head of Finance and Procurement submitted an exempt report which provided an update on the Single Fraud Investigation Service and sought  approval for a Joint Fraud Investigation team initially for South Northamptonshire Council and Cherwell District Council (phase 1) and incorporating Stratford on Avon at a later date (phase 2).

Resolved

(1)          That the report be noted.

(2)          That the introduction of a Joint Fraud Investigation Team be approved.

Reasons

Since 2010 the Government has been committed to the creation of a single integrated fraud investigation service which will investigate welfare benefit fraud across Department for Work and Pension (DWP), HMRC and local authorities.

In early 2013 pilots were established to test a number of proposals and options and by the end of 2013 it was confirmed that a single organisation would be established and that the new Single Fraud Investigation Service (SFIS) would be part of the DWP.

The transfer of Housing Benefit fraud investigation from local authorities to DWP is happening on a phased approach from 1 July 2014 until March 2016. In May 2014 the transfer dates were confirmed. The implementation date for SNC and CDC will be 1 February 2015.

Alternative Options

Option 1: Retain no fraud prevention and detection resource.

This option would see no fraud prevention and detection resource retained across the three Councils following the implementation of the Single Fraud Investigation Service (SFIS). This option has been considered and rejected by officers on the basis the three Councils have a duty to protect the public purse and ensure that fraud and error is minimised.

Option 2: To ‘buy in’ to one of the regional fraud hubs.

This option would see the three Councils purchase the service from a regional fraud hub following the implementation of the Single Fraud Investigation Service (SFIS). This option has been considered by officers and is not recommended as plans for the regional hubs are very much in the development stage. Officers are also concerned that the hub approach could mean reduced control over resources and outcomes. It should be noted that the hubs could be used to provide resilience to a retained local service if required.

Option3: Implement a Joint Fraud Investigation Team covering SDC/CDC/SNC from 1 February 2015.

This option was considered in detail, and would see a joint team established to cover CDC, SNC and SDC from 1 February 2015, rather than the phased implementation approach proposed in this business case. This option was rejected due to the fact that Housing Benefit fraud investigation at SDC does not transfer to SFIS until February 2016.