Jobcentre Plus Customer Representative Group Forum

1. Jobcentre Plus Customer Representative Group Forum 24 August 2011

2. Reminder of Background In July 2010 the Department was commissioned by the Prime Minister to produce a new comprehensive fraud and error strategy to deliver a step change in performance. On 18th October DWP and HMRC jointly published Tackling fraud and error in the benefit and tax credits systems. The strategy provides significant new opportunities for increased joint working between DWP and HMRC in the lead-in to Universal Credit. The strategy contains a range of measures to prevent fraud and error in the first instance; detect and correct fraud and error where it does exist; deliver tough punishments for those who defraud the system; and deter those who would try to abuse the system in future.

3. Programme initiatives (1) Prevent Integrated Risk and Intelligence Service (IRIS) to gather and process data and intelligence on fraud and error and debt management Three Information Technology (I.T.) improvement initiatives to prevent fraud and error entering the system Staff accreditation scheme to introduce an externally recognised qualification for benefit processing Detect Single Fraud Investigation Service (SFIS) with statutory powers to investigate and prosecute fraud across DWP, HMRC and Local Authorities Mobile Regional Taskforce (MRT) to target fraud and error in a local area Rationalise fraud hotlines into one welfare fraud hotline offering incentives for the reporting of benefit fraud

4. Programme initiatives (2) Correct Six case-cleanse exercises to purge the system of fraud and error Two debt recovery projects to reduce the debt stock and increase the rate and scope of debt recovery Punish Strengthen punishments with a new regime of benefit sanctions and civil penalties Deter Develop communications activity at a local level to increase the perception of the likelihood of being caught committing benefit and tax credit fraud Cross-cutting Develop a common approach to the measurement of Universal Credit Ensure that fraud and error risks are minimised in the design and delivery of Universal Credit

5. Integrated Risk and Intelligence Service • The new Integrated Risk and Intelligence Service will be a hub for data and intelligence on Fraud, Error and Debt. • The Department is currently looking at the detailed design stage and the integration of HMRC and LA requirements • Delivering the IRIS organisation will be in a staged approach. A new corporate centre design within DWP from October 2011 will establish its basic structure. • IRIS will use the very best data matching techniques drawing on private sector best practice and have at its disposal high quality analysts using intelligence acquired to target high risk cases.

6. Use of 3rd Party Data - Credit Reference Agencies • CRA Bulk Data Matching contract currently being agreed to match benefit data to identify fraud and error. • CRA data procurement contract currently being agreed to provide data at the point of claim for identification and risk based verifications • Letters pilot has concluded: Pilot to be evaluated followed by proposals forsecond phase of pilot to begin in September

7. Automated Transfers To Local Authority Systems (ATLAS) • This I.T. solution automatically updates Local Authority (LA) systems with changes to or new claims for tax credit. • Phase 1 went live with 22 early adopter sites on 09/05/11. Feedback from the early adopter sites suggests that they were unaware of 96% of the changes that were forwarded by ATLAS. Full rollout has now been achieved. • Phase 2 rolls out later this year where ATLAS will inform those LA systems of DWP benefits as well as Tax Credits. • Early savings data will be available next month which will hopefully validate the savings profiles.

8. Accreditation • This project looks to improve the standard of benefit processing by improving technical training with a resulting increase in accuracy and reduction in the number of incorrect payments made as a result of official error. • The project is considering various accreditation options: • Endorsed learning which involves ensuring that the technical training available for staff is of the appropriate standard and endorsed as such by an external education body. • Staff accreditation where individuals will work towards achieving externally recognised accreditation. • Much preparation work being done to understand what accreditation provision and staff learning already exists in order to understand links and dependencies. • Links made with Universal Credit programme to ensure impacts are captured across programmes.

9. Single Fraud Investigation Service • The Welfare Reform Bill committee has agreed all the clauses relating to introducing the Single Fraud Investigation Service in 2013. • The Bill has had First Reading in House of Lords. • A high level plan has been produced by DWP. • Lower level plans are being developed with HMRC and Local Authorities. • Work is underway to produce communication and engagement plans for external stakeholders.

10. Benefit Fraud Hotline • To improve the Benefit Fraud Hotline and increase levels of detection, prevention and deterrence, by; • Improving the quality of referrals by working with IRIS colleagues to ensure referrals from the Hotline are dealt with effectively and efficiently. Will require closer look at scripting and an understanding of how better quality scripts may generate increased numbers of prosecutions and sanctionable outcomes; • Developing joint working arrangements and relationships between DWP and HMRC/Local Authority colleagues to implement a Single Welfare Fraud Hotline, that is capable of taking calls on any type or combination of benefits and credits fraud across current agencies, ahead of the introduction of Universal Credits; • Exploring the feasibility of offering financial rewards as a means to attract more and better quality fraud referrals;

11. Case Cleanse • Pension Disability & Carers Service • Case cleanse initiatives are into their second year now looking at Pension Credit, Disability Living Allowance, State Pension and Carers Allowance. • In the region of £20m savings reported already • Jobcentre Plus • Benefit Integrity Centres set up to support cleanse activity through telephone interventions • Cleanse activity taking place in IS, JSA and ESA benefits • In the region of £19m savings reported already

12. Debt Management Debt Legislation • Will allow DWP to collect HMRC Tax Credit overpayment debt by deduction from Universal Credit. • Direct Earnings Attachments will allow DWP to collect benefit overpayment debt directly from a persons earnings where they will not agree to repay voluntarily. Debt Spend to Save • Extra funding was secured to retain staff to carry out further Debt Recovery work for 4 years. £100m target on top of the normal “day job” target. • Project on profile – recoveries on debt Spend to Save as at end July 2011 are £20.8m in total.

13. Penalties and Sanctions • A toughening up of current measures for Fraud and a new civil penalty of £50 for Customer Error. • Reliant on successful passage through primary and secondary legislation. The 2nd Reading in House of Lords planned for September 2011. • I.T. feasibility work being undertaken to understand requirements to support legislation

14. A joint initiative between DWP, HMRC and Birmingham City Council Aug 2011 Mobile Regional Taskforce Pathfinder

15. Why are we doing this? • DWP, HMRC and Birmingham City Council have joined forces to run a Mobile Regional Taskforce Pathfinder as part of a range of strategy initiatives that aim to: • Boost the detection of fraud and error in the welfare system • Contribute towards deterrence messages • The Taskforce Pathfinder will help us to refine what we do, and how we do it ahead of a national roll-out later this year

16. Where will the Taskforce operate? • The Taskforce will: • Focus on B44 postcode area • Audit benefit and Tax Credit claims to detect welfare fraud and error and deter future incorrect claims • Be supported by a media campaign to: • Remind claimants to check their claim is correct • Remind claimants that they are responsible for reporting any changes in circumstances • Remind claimants that benefit cheats will be found and punished • Customer contact (visits, telephone) activity go ‘live’ for a 4-week period w/c 25 July

17. Why Birmingham? • We have analysed DWP, HMRC and LA fraud data (e.g. number of fraud referrals received, number of sanctions applied) and the B44 postcode comes out as one of the highest risk areas • We have a strong working relationship with Birmingham City Council staff who have been very supportive of joint working to tackle fraud and error with DWP and HMRC • Lessons learned from the Pathfinder will help us to refine the Taskforce as it rolls out nationally later this year

18. What we want to achieve (1) The Pathfinder aims to: • Identify the number of changes in circumstances reported over the Pathfinder period • Uncover unreported changes in circumstances which result in: • Underpayments being identified, corrected and any outstanding monies paid • Overpayments being identified, corrected and referred for debt recovery action • Fraud referrals for further investigation which result in a sanctionable outcome • Increase the public perception that the Government and Local Authority are taking decisive action in order to reduce losses as a result of benefit and Tax Credit fraud and error

19. What we want to achieve (2) • Increase the perception of the risk of being caught: • Use the media to encourage conversation in the community and a feeling that any claimants could be visited / targeted by the Taskforce • Effect a behaviour change by: • Prompting proactive customer contact to report any changes in circumstances • Deterring benefit and Tax Credit fraud or customer error being committed • Remind customers of the types of circumstances they need to report, how to do so and where to seek advice; some examples of the changes that need to be reported: • getting married, entering into a civil partnership or moving in with a partner • moving house • getting a new job • getting a pay rise • inheriting or unexpectedly coming into money • taking in a lodger • no longer being sick or ill • travelling or moving abroad

20. Who are we targeting? • The Taskforce Pathfinder will audit current benefit and Tax Credit / Child Benefit customers within a specific geographical location regardless of age, gender, ethnicity, income, disability breakdown or family status • In addition the media messages are targeted at all potential new benefit customers, as well as those who may not be in receipt of benefit but have claimed in the past and are likely to claim again in the future

21. What are our key messages? Error • We know there is too much error in the benefit and Tax Credit system – customer error accounts for approximately £1.2 billion in loss each year • The Taskforce Pathfinder will focus resources to help tackle that and make sure we are paying people the correct amount of benefit – including rectifying any underpayments Fraud • We know that some customers believe they are unlikely to be caught if they are fraudulently claiming • The work of the Taskforce will be publicised and visible, and by reviewing around 5,000 cases over this period we will increase the chances that anyone claiming benefit or Tax Credits dishonestly will be caught

22. How does the Taskforce work? • An audit of benefit claims: • DWP: Income Support, Jobseekers Allowance, Employment Support Allowance and Pension Credit • HMRC: Tax Credits, Child Benefit • Birmingham City Council: Housing and Council Tax Benefit • Contact claimants via a combination of letters and visits from either DWP, HMRC or Local Authority Taskforce staff, or via a telephone call from Jobcentre Plus • During the Pathfinder we expect to review approximately 5,000 cases for error and fraud

23. During Taskforce activity (4-weeks) • Ministerial announcement at national and regional level (25 July) • Intensive Taskforce activity supported by national and regional media strategy • Backed up by local statistics and area-specific information – supported by the Fraud Investigation Service (Jobcentre Plus) Prior to arrival of Taskforce (2 weeks before) • Working with national and local media outlets to encourage customers to report changes in circs and highlight the raised level of Taskforce activity coming to the area • Pre-recorded broadcast interviews with Lord Freud • Working with local stakeholders (eg. community and advice groups) and using their channels to share our messages • Utilising social media channels to spread the word Post Taskforce activity (2 weeks) • Update local community on the success of the Taskforce • Follow up local media features; for example, case studies, impact of the Taskforce. • Act as a reminder of a national roll-out later in the year • Evaluation What communications support is in place? • National media announcement 8 July • Local media from w/c 11 July

24. Communications • Ministerial announcement in print and broadcast media including: • Newspaper article by Secretary of State, Rt. Hon Iain Duncan Smith MP • Interviews with Minister for Welfare Reform, Lord Freud • Media coverage • Press notice to local media; for example, Birmingham Mail, Sunday Mercury, BBC Radio WM, ITV Central • Prior to launch day, press notice to local media to announce Taskforce is operational;