The Committee considered the National Fraud Initiative Progress 2016/17 report presented by Sue Oakley, Senior Fraud Officer.

Sue Oakley highlighted the following, that:

·       The report provided details of the background and evolution of the National Fraud Initiative (NFI) and the NFI 2014 exercise;

·       It is a bi-annual data matching exercise were all Local Authorities and some other Government agencies match its data to prevent and detect fraud and error in its systems

·       The exercise has evolved to extend its partners to all Local Authorities in England, Wales, Scotland and Northern Ireland and now includes pension details from the Police, Health Service and Fire Service;

·       To date over £1 billion has been identified in fraud and overpayments over the various exercises across the country;

·       A new exercise is about to commence with the Council’s data being supplied to the Cabinet Office this month, resulting matches are due to be released in late January 2017;

·       The Council Tax and Electoral Register data which is designed to highlight discrepancies in Single Person Discounts awarded on Council Tax will be matched at a slightly later time due to the Electoral Register’s changes to compiling the register, because the completed register is not available until 1^st December. These matches will also be available in January 2017;

·       The last exercise conducted in 2014, revealed over 18,000 matches, which is being overseen by the Risk Management Section;

·       To date over 2,000 matches have been processed and a further 177 are still in progress;

·       109 cases of fraud has been detected and a further 122 cases of “error” has also been recorded; and

·       2,278 matches have been cleared with no issues.

Members raised the following concerns:

·       Why is the report produced bi-annually and not an ongoing reporting mechanism;

·       What are the data sets that is looked at; and

·       Are there any counter-fraud measures in place.

Sue Oakley informed the Sub Committee that the bi-annual report has always been produced with that timescale but an ongoing report would be better. She also stated that the data sets referred to were Transport Passes, Blue Badges, Right to Buy applicants, Personal Budget Holders, Private Supported Care Home Residents, Creditors Standing, Creditors Payments and Council Tax Account Holders.

Minesh Ali, Service Head Risk Management informed the Committee that there are statutory requirements in place for participants and covers all data sets. He also stated that the information is match with other London Boroughs and Local Authorities across the country to identify fraud. The system is a bit “clunky” but ideas are a being explored to revamp the system and looking at other pilot studies already being conducted e.g bank systems etc. Once the research is complete then discussions will be held to see if specific systems can be procured. Tower Hamlets is currently is discussion with Haringay Council and Lloyds Bank looking at existing systems and pilot systems.

The Chair, Councillor Candida Ronald enquired about Housing Benefits and the DWP and if the system looks at this area as well.

Minesh Jani informed the Committee that the data from Housing Benefits is also matched with other London Boroughs and Local Authorities across the country, but because Housing Benefit is dealt with by the DWP then it is unable to identify fraud etc, however, anything relating to tenancies or car parking can be dealt with by Tower Hamlets. He also stated that Tower Hamlets has a good relationship with the DWP and share information and work together to monitor any concerns.

The Committee agreed to note the report.