Guidance

A4/2020: Housing Benefit operational information, performance support and engagement 2020-21

Updated 10 February 2021

© Crown copyright 2021

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected].

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2020/a42020-housing-benefit-operational-information-performance-support-and-engagement-2020-21

Who should read

Housing Benefit staff

Action

For information

Guidance Manual

The information in this circular does not affect the content of the HB Guidance Manual

Queries

For queries about the:

Introduction

1. This circular outlines the Department for Work and Pensions’ (DWPs) approach in relation to its use of Housing Benefit (HB) operational performance information, the support it provides to local authorities (LAs) and its engagement work. It takes account of on-going reforms, the need to maintain levels of HB performance and the requirement to reduce HB fraud and error.

Inspection and reporting arrangements for 2020-21

2. Due to LAs’ continuing willingness to work in partnership with DWP and deliver change and improvements to their HB services, DWP hasn’t needed to carry out any HB inspections in England since 2012. Consequently, we are not planning to undertake any in 2020-21. However, we reserve the right to do so should circumstances warrant it and report to the Secretary of State on any areas of concern as necessary.

3. Any decision to inspect would be taken separately from those made regarding the provision of free consultancy support, although it would take account of any DWP involvement with the LA in question, including any liaison regarding improvement plans and the outcome of any consultancy support. For more on the support available to LAs see paragraphs 13-16 below.

4. In Scotland and Wales decisions on audit/inspection and the production of reports rest with the relevant audit bodies. DWP liaises with these audit bodies, as necessary, and continues to offer and provide free consultancy support to LAs in Scotland and Wales.

Areas of importance and DWP interests

5. Whilst it is for LAs to decide how best to deliver their HB services, DWP’s interests arise from its:

a) funding responsibilities – HB subsidies and grants interest in ensuring delivery of policy intent, including welfare reforms and the need for the right benefit to go to the right people at the right time.

b) the current level of HB fraud and error in the benefits system and the amount of claimant debt.

6. DWP launched the HB Award Accuracy Indicator in a letter to LA Revenues and Benefits Managers and Chief Finance Officers on 27 February 2020. The Indicator compares the actual value of weekly reductions processed by each LA to the expected value of weekly reductions we believe LAs should be making, based on a range of claim characteristics which estimate the risk of the claim having a change of circumstances. This provides an indication of how effectively an LA is managing its HB caseload. The HB Award Accuracy Indicator management information provided to LAs each quarter will, along with published Speed of Processing (SoP) data, form the key source of information to oversee the effective delivery of HB and be used as one of the primary engagement drivers in 2020-21.

7. The estimated losses of £1.3 billion each year due to HB fraud and error continues to be a major concern. In consultation with LAs, DWP is providing additional funding (see circular HB A5/2020) to LAs and mandate the following activities:

  • full Case Reviews for HB cases with the highest risk of incurring a change (based on the HB Award Accuracy Indicator).
  • review of Self-employed earnings that have been unchanged for 12 months (via new HB Matching Service (HBMS) rules)
  • all HBMS referrals.

8. Part of the mandated activity also includes LAs updating the required SHBE (Single Housing Benefit Extract) fields correctly to enable DWP to monitor progress and evaluate the improvement in the accuracy of awards.

9. DWP engagement will centre on:

  • high/poor HB award accuracy with a view to improving performance.
  • the volume of mandatory activity undertaken in relation to the funding provided.

10. It remains the intention of DWP to work collaboratively with LAs in all areas to improve performance and will use its six drivers of engagement as its focus:

  • speed of Processing data for new claims and changes of circumstances
  • action being taken to prevent fraud and error – primarily through LA action to keep claims right – supported by the new HB Award Accuracy Indicator
  • verify Earnings and Pensions (VEP) data, with the use of data-matching and DWP VEP Alerts
  • HB subsidy audit and assurance
  • reducing benefit debt levels and improving debt recovery rates – informed by HB debt statistics
  • The relationship between LAs and DWPs Counter Fraud, Compliance & Debt Directorate (CFCD)

11. HDD will use these drivers of engagement to monitor LA performance. Housing Delivery Division’s (HDDs) Performance Relationship Managers will be at the forefront of this engagement and will contact LAs regularly to share good practice and offer advice and support.

Sources of HB operational information

12. To decide if there is a need to engage with an LA on HB operational performance and any service delivery issues, DWP will draw on the following sources of information:

  • HB related data published by DWP (in other words. caseload, Speed of Processing statistics, HB Award Accuracy Indicator, HB Debt Recoveries statistics and the national statistics on the estimated overall monetary value of HB fraud and error)
  • subsidy returns and any audit qualifications
  • other HB information that may be supplied by LAs to DWP, including information from SHBE, LA returns on data matches and fraud referrals made to DWP
  • data that DWP collates monthly on its fraud investigation work in respect of HB referrals (HBMS)
  • wider information, such as any relevant reports produced by the audit bodies, correspondence received in DWP and press/media stories.

DWP support to LAs

13. Whilst it is for LAs to decide what sources of support they may wish to draw on to deliver any HB service improvements, HDDs Performance Development Team (PDT) continues to offer free consultancy support to LAs in England, Scotland and Wales.

14. HDDs Engagement Board meets every six weeks to update on PDTs engagement with LAs, such as reasons for engagements with Performance Relationship Managers and consultants, numbers, outcomes, resultant improvements and any good practice identified. This information is not published but used by PDT to assist LAs with their performance.

15. To find out more about the PDT support available, LAs can contact PDT by email [email protected]

16. Information, guidance and good practice on key aspects of HB performance for LAs can also be found on the HB good practice pages on www.gov.uk

Back to top