Audit Commission

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The inspection process – and the new framework for assurance in benefits

Tim Savill Audit CommissionIRRV SE Forum May 2008

Audit Commission

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More change on the way……..

• The developing approach of the Commission's work in benefits

• The Practical process of inspection• The KLOE as a framework • How a Judgement is reached • What will impact on the judgement? • Key areas to look at in your organisation• Examples of Good practice• Issues for benefits in CAA• Next steps

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Quote from Audit Commission CEO

‘This merger strengthens the Audit Commission’s ability to ensure that the right people get the right benefits at the right time. It is vital that Housing and Council Tax Benefit Services are delivered to a high standard. In addition, the detection and prevention of fraud must remain high on council agendas to save tax payers’ money in a climate where directors of finance are looking for savings.’

Steve Bundred (Chief Executive, Audit Commission) – 1 April 2008

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Why should the Audit Commission be interested in Benefits?

• The merger with the BFI transfers the responsibility for inspection to the Commission

• Councils administer the payment of over £15 billion in benefits in England– AC Strategic Objective 2

To challenge public bodies to deliver better value for money

• Housing and Council Tax Benefit are paid to some of the most vulnerable groups in society– AC Strategic Objective 3:

To encourage continual improvement in public services so they meet the changing needs of diverse communities and provide fair access for all.

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SEE IT FROM THEIR SIDE

What is a benefit service? • a vital contribution to social and economic wellbeing • a significant contribution to councils’ strategies

• to address poverty, deprivation, homelessness, or worklessness

• an enabler to fairer access to decent homes• a gateway to better health• a key source of income to the most vulnerable groups• paying the right people, the right benefit at the right time

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A fresh approach to assurance in benefits

• An approach that will provide assurance across all councils – integrated with CAA

• Need to use existing information better (Collect Once, Use Numerous Times)

• Strengthen Use of Resources (including fraud) and Direction of Travel assessments to include HB/CTB

• Changes to our subsidy approach – including data quality

• Integrated approach: use existing knowledge to supplement and inform risk assessment

Audit Commission

Presentation The practical process of inspection

• If other options not appropriate• Assurance; diagnostic; or accountability• Triggers

– Unsatisfactory performance– Services, outcomes or users at risk– Above cannot be addressed by other means– Ministers give directions

• Totally different approach to BFI and the performance standards– a ‘harder test’ – few ‘Good’ and ‘Excellent’ scores

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Information sources for inspection

• A range of information– Performance Review Group (DWP)– Subsidy– Data Quality– Deprivation– Caseload– Spend– Performance – including trends– Fraud and NFI– Local knowledge

• Good intelligence will be needed to ensure we inspect those councils where it will make the most difference

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The key lines of enquiry (KLOE) as a framework

• Same framework as all AC inspections– 8 years inspection; housing, culture and environment

• Six questions– 3 for each judgement– J1 specific to benefits– J2 as other service inspections

• Few changes following consultation– Final version published on website 1 April 2008– Letters to all council CEOs, DoFs, BMs

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How a Judgement is reached • 2 people on site for a week – plus a planning meeting

and post inspection meeting– One specialist, one generalist– Documents, interviews, reality checks

• It’s a judgement on the whole service– Pilots have been valuable in establishing score benchmarks

• Focus on risk– Evidence based, triangulated

• Agree strengths and weaknesses, and move-on• Will use KLOE as guide (not weighted), but not ‘tick-

box’• Many opportunities for feedback (before, during and

after)

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What have the nine pilots revealed?• Methodology ‘works’ and issues influencing

judgements include:– Overpayment management– Weak benefit take-up– Engagement with customers– Linking benefits to strategic issues - looking at the whole

service– Speed v Quality– VFM (LA Error)– How policies impact on vulnerable people

• Some ‘basic’ issues impacting on customers (value of a ‘fresh pair of eyes’)– Access– Phones, waiting times, information etc

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What have the pilots revealed?• And some positive examples

– high quality face to face customer service – joined-up– strong PI performance, good approach to fraud– early signs of customer engagement – starting to shape service

around customers – good understanding of communities– Positive outcomes from take-up strategies – open to change and challenge– different approaches starting to demonstrate improvement– overpayment management– modern reception facilities

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Presentation And if you get inspected…….• Commission decision of where we will inspect

– And the scope of the inspection

• Around 3 months notice• Self assessment against KLOE

– No inspection, no self assessment!

• Recommendations• Published report – scored

– Copied to DWP

• Report style – judgement, evidence, impact– This is what we think (J)– This is why we think it (E)– This is the outcome (I)

• It is about improvement, make the most of it!

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Challenges and CAA

• No performance standards– Targets can drive the wrong behaviour– Just 2 (new) PIs– A chance to review your policies?

• What does your organisation want from its’ benefit service?– Think about what benefits contributes to– What are the important outcomes you want– Think about fraud, take-up and processing– Shape the service around your customers

Audit Commission

Presentation Challenges and CAA

• Raise profile of benefits at your council• CAA will be looking at the contribution to an area

– How joined up are services (not just in a council)– Outcomes linked to area targets– Think about what priorities benefits contributes to– Get to know your LAA targets

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Which NIs can benefits contribute to?• Benefits PIs unlikely to feature specifically, but

– NI 14 Reducing avoidable contact – NI116 Proportion of children in poverty– NI 138 Satisfaction of people over 65 with both home and

neighbourhood– NI139 The extent to which older people receive the support they

need to live independently at home– NI 151 – overall employment rate – NI 152 – working age people claiming out of work benefits – NI 153 – working age people claiming out of work benefits in the

worst performing neighbourhoods– NI 156 Number of households living in temporary accommodation– NI 173 Flows on to incapacity benefits from employment– NI 179 Value for money – total net value of ongoing cash-releasing

value for money gains that have impacted since the start of the 2008-09 financial year

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Next steps

• Identify councils for inspection post April 2008– Selection on a quarterly basis– DWP/CLG grant funded, up to 35 inspections in 2008/09

• Integrate our new staff– strong LA background– 5 ‘inspectors’ and 3 transferring from BFI– 3 Policy Team

• Agreement from pilots to form practitioners group– First meeting took place in December 2007– Group likely to have ‘rolling’ membership Develop risk

framework for benefits

• Communicate with councils

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CONTACTS

Email

Tim Savill t-savill@audit-commission.gov.uk or

Benefits benefits@audit-commission.gov.uk

Phone

07876 1448409

Website

Audit Commission benefits information:

http://www.audit-commission.gov.uk/bfi/