1. Social Housing Fraud OHIP Board – 13 th March 2012 Internal Audit & Counter Fraud Team Performance, Services and Capacity

2. 2 Social Housing Consultation Consultation by the Department for Communities and Local Government. National Fraud Authority estimates that tenancy fraud costs around £900m per year. Paper seeks views on Government proposals to reduce the prevalence of fraud with stock of social housing. It includes measures that would greatly increase both the deterrent to tenants to commit fraud and landlords' ability to detect and prosecute those who do. It would also extend local authorities' powers of prosecution, allow for restitutionary payments to be made to landlords and remove the loopholes that allow those abusing their tenancies to retain them Consultation will run until 5pm on 4 th April 2012

3. 3 Why action on social housing fraud is required: The Audit Commission reported in their National Fraud Initiative Report “Protecting the Public Purse 2011” that: –All those providing social housing have a part to play in combating tenancy fraud regardless of whether they directly meet the financial loss caused by such frauds. –The financial incentives for registered providers to identify fraud are less than for councils who bear the costs of providing temporary accommodation.

4. 4 What is “Tenancy Misuse”: Housing Tenancy Fraud is the occupation of social housing by those who are not entitled to it. The main areas of tenancy misuse are as follows: –Obtaining a tenancy by deception – misrepresentation of circumstances. –Succession fraud. –Unlawful subletting. –Unlawful assignment – i.e. transfer of tenancy. –Key selling.

5. 5 Expectations and activities A clear commitment by all partners to prevent and detect social housing fraud. Recognition of the full cost and harm caused by social housing fraud. High level fraud awareness amongst staff. Campaigns to raise public awareness and encourage residents to report suspected misuse. Fraud hotline to enable the public to report their suspicions directly to those who will investigate their concerns.

6. 6 Expectations and activities Regular tenancy audits. Joined up approach between key partners. Use of Counter Fraud Officers to support Registered Providers and Legal Services. Effective use of Data Matching. Use of indicators to highlight potential tenancy fraud e.g. failure to provide gas inspections.

7. 7 Failure to act – the impact on providers Unable to make best use of existing housing stock. Increased number if incidents of overcrowding and under-occupation of existing housing stock. Increased use of temporary housing. Reduced ability to tackle homelessness. Lack of control over allocation of properties.

8. 8 Recent Oldham Case Family apply for Right to Buy a First Choice Homes property. Concerns raised by the Right To Buy team who contacted Counter Fraud Team Counter Fraud Team agreed to take on the case which also involved Housing Benefit and Council Tax Benefit. Evidence obtained, visits conducted and statements taken. Based on the evidence it established: Housing Benefit overpaid £1030.78 Council Tax Benefit overpaid £314.75 Refused Right to Buy Discount £25,200 Tenancy terminated and brought back into stock

9. 9 Internal Audit & Counter Fraud Objectives To ensure that housing stock is put to best use by reducing number of unlawfully occupied properties. To assist partners in reducing waiting times for applicants by returning unlawfully occupied properties back to housing stock. To assist partners in reducing the risk of applicants wrongfully entering onto the waiting list. To raise public awareness of the frequency and the effect of unlawful subletting and occupancy and encourage its reporting.

10. 10 Proposed Action – Next Steps Six month pilot exercise to be reviewed quarterly. Review will cover key learning areas of pilot. Posters and leaflets to residents advertising fraud hotline/email and campaign. Tackling Unlawful Subletting and Occupancy Policy. Data Sharing agreement between partners to assist. Verification Training for staff on how to spot and report issues of unlawful subletting and tenancy misuse. Set of “unlawful subletting and tenancy misuse indicators” will be developed for partners.

11. 11 Questions and contact details Oldham Council Internal Audit & Counter Fraud Team Level 14 Civic Centre West Street Oldham OL1 1UT Tel : 0161 770 3236 Fraud Hotline: 0161 770 4969 Email: investigations@oldham.gov.ukinvestigations@oldham.gov.uk