Housing Benefit and Council Tax Benefit Circular

Housing Benefit and Council Tax Benefit Circular Department for Work and Pensions The Adelphi, 1 - 11 John Adam Street, London WC2N 6HT HB/CTB A19/2004

ADJUDICATION AND OPERATIONS CIRCULAR

To be read by Benefit managers, Fraud managers and all HB/CTB WHO SHOULD READ and Fraud staff

ACTION For information

Further guidance on the Verification Framework (VF) and Security SUBJECT Against Fraud and Error (SAFE) schemes from April 2004

About this circular

Read this circular in conjunction with HB/CTB Circular A16/2004.

Guidance Manual

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

Queries

If you have any queries about the  distribution of this circular, contact Corporate Document Services Ltd Orderline Tel: 0113 399 4040 Fax: 0113 399 4205 Email: [email protected]

Recipients may freely reproduce this circular. HB/CTB Circular A19/2004

Contents

Further guidance on the revised verification (VF) and Security Against Fraud and Error (SAFE) schemes from April 2004

Introduction...... 1 Definition of a review for VF purposes...... 4 Definition of ‘LA action’ for the purpose of claiming a WIB reward under the SAFE scheme...... 9

Adjudication and Operations circular March 2004

Further guidance on the Verification Framework (VF) and Security Against Fraud and Error (SAFE) schemes from April 2004

Introduction

1 HB/CTB Circular A16/2004 (also issued as HB/CTB Circular F5/2004) gave information on the procedures and processes to be put in place for the implementation of the revised schemes due to come in to effect in April 2004. It also informed LAs that the issue of the Security Manual had been delayed pending a more thorough quality assurance by the Local Authority Associations (LAAs).

2 At the meeting with the LAAs on 26 March 2004, it was agreed that, pending issue of the new Security Manual, further urgent guidance is needed in two areas:  the definition of a review, and  the 28 day rule

3 We also agreed that LAs would benefit from being reminded that the VF is a ‘minimum requirement’ that they are at liberty to exceed if they so wish.

Definition of a review for VF purposes

4 For standard HB/CTB cases, including pensioners not in receipt of Pension Credit, a review of a selected case will require checking and confirming all the main elements of entitlement by whatever method the LA feels appropriate for that case. As a minimum, the form at Appendix 6 of the current VF Manual would serve the purpose, but authorities can, if they wish, use their own versions provided the form meets this minimum requirement.

5 For non-standard cases, including those in receipt of Pension Credit (both Guarantee and Savings Credit), LAs will not be required to review a claimant’s income and capital. The LA will, however, be required to verify the claimant’s ongoing entitlement to Income Support, Jobseeker’s Allowance (Income Based), and Pension Credit as at present. All other HB specific elements of the claim must be reviewed for these cases to confirm entitlement to HB/CTB.

6 The requirement in paragraph 5 above is the minimum requirement for LAs compliant with VF. It follows, therefore, that LAs are entitled to do more than the minimum when carrying out a review.

7 During the review process, the revised VF requires that only changes since the last review or initial claim need to be verified. Again, LAs may wish, as previously stated, to verify other aspects of the claim beyond this minimum requirement. 8 The same applies to obtaining a signature for a ‘no change’ review. The VF does not require this, but again, as already stated, LAs may wish to obtain a signature for their own purposes.

Definition of ‘LA action’ for the purpose of claiming a WIB reward under the SAFE scheme

9 HB/CTB Circular F27/2003 stated that an overpayment identified as a result of a claimant report made within 28 days of a contact made by the LA to that claimant, is eligible for a WIB reward.

10 This principle is extended to include changes reported within 28 days of LA action that lead to a reduction in benefit, even if no overpayment is identified. A WIB reward can be claimed based on the amount of the weekly reduction.

11 In this situation, such a change of circumstance can be reported to the LA by the claimant, Jobcentre Plus or The Pension Service within 28 days of the commencement of the LA action.

12 For the purpose of eligibility for a WIB reward under ‘the 28 day rule’, ‘LA action’ is defined as:  a review (as defined by the VF), or  a fraud investigation (as defined in the MIS guide)

13 We are not able to offer a wider definition of ‘LA action’ at this stage although we intend to do so. We have agreed with the LAAs to discuss a broadening of the definition to incorporate at least limited reviews as soon as possible.