Guidance

LA Welfare Direct 1/2021

Updated 20 December 2021

Contact

If you have queries about the:

• technical content of this bulletin then contact details are given at the end of each article
• general content and distribution of this bulletin, contact lawelfare.correspondence@dwp.gov.uk

Who should read

All Housing Benefit staff

Action

For information

Editorial

On behalf of the Department for Work and Pensions (DWP), may I wish all of our readers a happy New Year and certainly a much happier one than last.

I am sure there will be much reflection on 2020. When I look back, it feels like a bit of a blur. Despite the challenges which have been thrown at us, I am really grateful to all of you for keeping the show on the road; ensuring people kept a roof over their heads. It is truly impressive what you have delivered.

The fact that so many local authorities (LAs) opted in to the HB Award Accuracy Initiative (which had a delayed start in October 2020) goes to show how well Housing Benefit (HB) delivery staff responded to the pandemic. As with all initiatives, there have been a few teething problems around the management information which you can read more about below. We also had a number of concerns raised about the inclusion of supported accommodation cases in the high risk cases which we are continuing to explore. Needless to say, if you do come across a case and feel it does not warrant attention, you don’t have to look at it.

We are aiming to resolve these issues before the Initiative gets refreshed in April 2021. There is an ongoing debate with the Practitioners’ Operational Group about our intent to make participation mandatory, as originally designed. We will be issuing guidance about this and Verify Earnings and Pensions funding as soon as we can.

With most of my staff back from their various loans to Universal Credit Service Centres and Kickstart, we are hoping to get to a “new normal” with greater engagement with you over performance. My division was also tasked with introducing the Winter Grant Scheme and are looking at how we can support the Reducing Parental Conflict Programme using our understanding of grants, our relationships with LAs and communication channels.

If 2020 has shown us anything, it is how resilient we are, how we can move quickly when we need to, how LAs stand up and deliver even in the most challenging circumstances and what can be achieved if we work in true partnership.

There is continued uncertainty about how long the pandemic will last as we start 2021 and, as I completed this editorial, the news of a further lockdown was announced. Please be assured, my division will continue to collaborate and support LAs in responding to adjustments and recoveries to reflect the latest situation.

Clare Elliott
Head of Local Authority Partnership, Engagement and Delivery (LA-PED) division

Update: Pension Strategy Computer System uprating solution

1. As local authorities (LAs) will be aware, the Pension Strategy Computer System (PSCS) uprating solution went live in December 2019. During the testing of the solution, an unrelated longstanding issue was identified. Specifically, in some cases the previous benefit had not been ended on Searchlight when customers migrated to State Pension from Widows Pension/Incapacity Benefit, etc. Although the previous benefit is not in payment, the PSCS uprating Application Programming Interface showed data for both benefits. This was due to the out of date awards for the other PSCS benefits remaining open and, were therefore, included in the notification sent to LAs.

2. We have been working to address this issue and it is now in the process of being resolved.

3. Results of a scan identified there were approximately 200,000 open awards in the CIS (Customer Information System) that should have been closed.

4. Around 100,000 Widows Benefit and Bereavement Benefit records have been repaired. This action was undertaken on 6 December 2020 and 2 January 2021.

5. Due to this action, LAs may have received notifications from the Automated Transfer of Local Authority System (ATLAS) informing them that Widows Benefit and Bereavement Benefit ended on 6 December 2020 or 2 January 2021. A fix to prevent the ATLAS notifications from being sent out to LAs was made. However, this did not work on 6 December 2020. DWP received assurance that the fix on 2 January 2021 did not produce any ATLAS notifications and if an LA did receive an ATLAS notification no action was/is required.

LA action required in relation to your annual PSCS uprating

6. If during annual uprating activity an LA user identifies a record that has not been repaired, take the following action:

• add the National Insurance number (NINo) and customer name to an Excel spreadsheet
• DWP suggests one nominated person from each LA provides one list/spreadsheet of customer names/NINos on a daily basis
• send the completed spreadsheet via email to sharon.beaton1@dwp.gov.uk and copy to kerry.wright1@dwp.gov.uk

7. The DWP CIS Data Guardian Team aims to get the cases back to the LA within 48 hours, to advise if the information on CIS Searchlight is correct.

Next steps

8. Work to repair the outstanding records for Incapacity Benefit and Severe Disablement Allowance cases will continue, with the aim of completion by the end of January 2021. LAs will be updated on progress in due course.

Housing Benefit Award Accuracy Initiative: Performance information

9. 266 LAs opted to participate in the re-launched HB Award Accuracy (HBAA) Initiative. For those LAs, DWP provided additional funding to undertake the following activities:

• HB Full Case Reviews (FCRs)
• HB Matching Service (HBMS) referrals, including Self-Employed Earnings Reviews (SERs)
• the correct recording of case information on LA IT Systems and clerical management information (MI) returns to DWP

10. More details regarding the activities and funding are provided in circular HB A9/2020

Performance activity recorded

11. Local Authority Partnership, Engagement and Delivery (LA-PED) division has received MI for the first two months of the Initiative. This shows that some participating LAs have not yet recorded any FCR activity and/or HBMS rules activity.

12. LA-PED recognises this may be due to differences in how some LAs are planning delivery of activities for the duration of the 2020-21 Initiative. We will be contacting individual LAs from January 2021 to ascertain if they believe DWP information is incorrect. This is an opportunity for LAs to advise of any exceptional circumstances which are impacting on the delivery of HBAA activities. In the meantime, if LAs want to inform DWP of any exceptional circumstances they can do so by emailing lawelfare.prmpdt@dwp.gov.uk

13. LA-PED identified some potential data anomalies within the MI supplied by some LAs who have commenced the required activities in respect of FCRs – see advice for LAs on completing FCRs and provision of FCR MI (below).

14. LAs will be aware that the LA-PEDs Performance Development Team (PDT) offer free professional consultancy support. If you wish to work virtually with PDT on this, or any HB service delivery issue then PDT will assign a consultant to provide this support. You can contact PDT at lawelfare.pdt@dwp.gov.uk

Next steps

15. LA-PED intend to hold a conference call with all participating LAs from 11am to 12 noon on 25 January 2021. This will give LAs an opportunity to raise questions regarding the planning or delivery of activities, including the correct recording of cases and the return of MI to DWP. An invitation will be provided with dial in details separately.

HB Award Accuracy Initiative: Advice for LAs on completing FCRs and provision of FCR MI

16. There are various records created when assessors complete reviews/interventions and associated processing work. These records subsequently populate an LA’s monthly SHBE (Single Housing Benefit Extract) submission and are then used to inform the DWP MI.

17. Initial examination of MI returns for HBAA FCRs show a small number of anomalies that require further investigation. PDT has spoken to a number of LAs to identify potential issues and good practice.

18. Further information on provision and use of MI for HBAA can be found in circular HB A9/2020. The most common issues identified can be found at Annex A of this bulletin.

19. If you have any questions you can email lawelfare.frauderrordebt@dwp.gov.uk

Urgent reminder: Memorandum of Understanding for 2020-21

20. LA-PED wrote to all LAs directly on 1 December 2020 and attached both the current version of the Memorandum of Understanding (MoU) and the Data Processing Agreement (joint controllership) and asked for the signed declarations to be returned by 14 December 2020.

21. The MoU continues to cover the sharing and use of DWP and HMRC data where legally permitted. To ensure continued access to the DWP and HM Revenue and Customs data, each LA is required to fully complete, sign and return the necessary declarations.

22. Thank you to all those LAs that have sent us their return. Unfortunately, some LAs have not returned their declarations and we now urge those LAs who have not yet made their returns to do so by 13 January 2021 at the very latest – unless you have already agreed an extension beyond this date.

23. Should you be unable to confirm compliance, it is important that you notify DWP of this as soon as possible to enable us to help you through the compliance process.

24. Do note, DWP will need to monitor and review the current data sharing arrangements and access to DWP systems such as Searchlight for any LAs who fail to respond to this request.

25. If you need to contact us or have any queries about the content of this article you can email lawelfare.lasecurity@dwp.gov.uk

HB decisions by the Upper Tribunal

26. Decision Making and Appeals Leeds is aware of the following HB cases that have been decided by the Upper Tribunal (UT):

• CH/1193/2013: UT concluded that there was no undue delay between the claimant stopping work and making a claim to Income Support and that she retained her status as a self-employed person due to being in the late stages of pregnancy, and after that maternity, in accordance with Dakneviciute judgment.

• CH/4927/14 and CH/4167/13 have the same heading: Shared accommodation rate in HB regulation 13(D)2 not “manifestly disproportionate to its legitimate aim” so not unlawful.

• CH-2383-18: Tenant caused overpayment by misinforming LA about the accommodation occupied and therefore liability to repay overpayment. Landlords from whom an LA seek to recover an overpayment have a full right of appeal.

• CH/2054/2019: Remitted appeal back to the First-tier Tribunal for further fact finding in order to establish whether the claimant or his wife had a right to reside in the UK at the time of their claim to HB and, if so, whether the level of their earnings would have entitled them to HB.

• CH/2856/17: Self-employed. Tribunal failed to explain why claimant did not incur allowable expenses.

• CH/064/20: Tribunal incorrectly based disallowance on failure to provide details of bank account for payment.

27. A selection of decisions of the UT are published on administrative appeals tribunal decisions. Do be aware that there is an undefined time lapse between decisions being issued and their appearance on the website.

28. If you have any queries about cases before the UT Judges or courts you can email quarryhouse.dmaleedscustomersupportservices@dwp.gov.uk

New legislation

29. The following Statutory Instruments (SIs) have been laid:

• 2020 No. 1332 The Occupational Pensions (Revaluation) Order 2020. Came into force 1 January 2021

• 2020 No. 1391 The State Pension Debits and Credits (Revaluation) (No. 2) Order 2020. Coming into force in accordance with article 1(2)

• 2020 No. 1392 The State Pension Revaluation for Transitional Pensions (No. 2) Order 2020. Coming into force in accordance with article 1(2)

• 2020 No. 1519 The Rent Officers (Housing Benefit and Universal Credit Functions) (Modification). Coming into force 28 January 2021

• 2020 No 1638 The Statutory Sick Pay (GENERAL) (Coronavirus Amendment) (No. 7) Regulations 2020. Came into force 24 December 2020

30. Copies of SIs can be downloaded from legislation.gov.uk.

What’s new on our HB pages on www.gov.uk

31. The following items can be found on the website link shown:

Document Type	Subject	Link
Circular HB A10/2020	Pre-1996 cases: Rent Officer referrals	HB A10/2020
Circular HB A11/2020	Changes to Housing Benefit for claimants in receipt of Severe Disability Premium	HB A11/2020

HBAA FCRs: Common issues identified

Issue 1: MI identifies that the LA has completed an FCR with an outcome but no change and/or overpayment record exists (referred to as ‘T’ and/or ‘E’ records in SHBE)

Where an LA provides information to show that they have completed an HBAA FCR and entered a review outcome of:

• 1 = Benefit increased / earlier underpayment found but no change to live payment
• 2 = Benefit decreased / earlier overpayment found but no change to live payment

Then LA-PED would normally expect an associated record(s) to show either the change details that have occurred and/or the relevant overpayment details. Where these additional records do not exist then this may suggest that the review details might have been entered incorrectly (for example, the FCR should have been cancelled) or a change/overpayment update has been overlooked.

Issue 2: MI identifies that the LA has completed an FCR with an outcome, a change and/or overpayment record exists

MI identifies that the LA has completed a FCR with an outcome, a change and/or overpayment record exists, but the reason for change is not:

• 8 = LA intervention: review

Where an LA provides information to show that they have completed a HBAA FCR and entered a review outcome of:

• 1 = Benefit increased / earlier underpayment found but no change to live payment
• 2 = Benefit decreased / earlier overpayment found but no change to live payment

And there is an associated record(s) to show the change details that have occurred, then any associated change reason (selected by the assessor) relating to the review needs to show 8 = LA intervention: review. This enables DWP to differentiate the changes associated with the review, from others in the same period with alternative change sources/reasons. The reason descriptor (drop down option) may vary slightly depending on the benefits systems in use.

Issue 3: MI identifies that the LA has completed an FCR with an outcome of fraud and error detection activity

MI identifies that the LA has completed a FCR with an outcome of fraud and error detection activity. An LA then provides information to show that they have completed a HBAA FCR and entered a review outcome of:

• 4 = Not known / not recorded

Where a review has been completed then it would not be expected that the outcome would still be shown as not known/not recorded. If these codes do exist on completed FCRs this could relate to input errors, incorrect recording of different non-HBAA case types as FCRs, or cleansing of old records.

LA-PED issued some guidance on cleansing old records in LAWD/Lite10/2020 but are aware that some LAs have used:

• 4 = Not known/not recorded to represent review cancelled

Cases from the targeted FCR list, which LAs decide are no longer suitable for a review, should not be recorded as completed with a 4 = Not known outcome.

When an LA has uploaded the case details from a targeted FCR list and subsequently decided to discontinue the review activity then LAs should follow their IT supplier guidance for deleting reviews. LA-PED is currently seeking clarification from LA IT suppliers that this is possible on all systems and will issue further communications if necessary.

In circular HB A9/2020 LA-PED advised when setting up the initial fraud and error detection record it is important that LAs identify the case as Code 1 = High risk score referral from HBMS’ and mark up as a full review rather than a partial review.

LAs should not use Code 1 = High risk score referral from HBMS to identify the setting up of any other fraud detection activity, not directly associated with the new Caseload Risk Data.

If a change to current benefit awards and/or overpayment/underpayments is identified following the HB Award Accuracy FCR, then the LA should follow standard business as usual practice in accordance with their respective IT supplier guidance to capture both change and error (overpayment/underpayment) information. This is in addition to completing the intervention fields.