Over a billion pounds worth of Housing Benefit expenditure was lost to fraud and official error between April 2011 and March 2012, new figures from the Department for Work and Pensions (DWP) have revealed.
The DWP's statistics show that total overpayments due to fraud and error across the entire benefits system was £3.4 billion, or 2.1% of the total spend of £159.2 billion.
Ask any housing advice or homelessness officer what the most common question is that they get asked, apart from “Can I have a council house please?” and you will usually find it is “Do you know any landlords or agents who take DSS?”
In London at the moment there are between 5 and 9 people chasing every rental property. Although figures vary, depending on who you read what isn’t in dispute is the fact that landlords don’t have any problems finding tenants and can rent properties perfectly happily without councils, and yet councils need landlords to meet the massive demand for housing.
The timing of advice and support for benefit claimants assessed as needing a special budgeting bank account to handle monthly payments under Universal Credit is crucial, according to a financial expert.
The Department for Work and Pensions (DWP) yesterday held a procurement day for national payment suppliers who have expressed interest in developing new budgeting accounts for vulnerable claimants, which would be offered when claimants sign on to Universal Credit.
A north London council is opening credit union accounts for all new tenants as part of a move to minimise the impact of welfare reform.
Catherine West, Labour leader of Islington Council, speaking before a Department of Work and Pensions select committee this morning, said: ‘Every time we sign up a new tenant in council housing we give them a credit union account even though they may not know what it is at the time.