Guidance

LA Welfare Direct Bulletin 10/2018

Updated 3 December 2018

Contact

Queries about the:

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

Who should read

All Housing Benefit staff

Action

For information

Editorial

I have the privilege of providing the second editorial for the newly designed LA Welfare Direct. I joined Housing Delivery Division (HDD) 4 years ago and enjoy the opportunities to meet my former LA colleagues at Institute of Revenues Rating and Valuation (IRRV) conferences and events. During the first 20 years of my career I worked in the revenues and benefits sections of 4 large metropolitan councils, before moving to the Department for Work and Pensions (DWP). I often draw on my LA experience when working within DWP and liaising with LA representatives and other stakeholders. For those attending the IRRV conference in Telford please take the time to say hello and I’m sure we can share a glass of wine at the gala dinner.

My current role in HDD is the Deputy Divisional Director for Business Management which includes LA funding arrangements. Last year we set up an LA Funding Group with LA Chief Finance Officer (CFO) and Local Authority Association (LAA) representatives to provide a dedicated group to discuss the wide range of LA welfare funding streams. One area that the group has discussed is the methodology for allocating Housing Benefit (HB) Admin Subsidy across all of the 380 different LAs. The group decided that the current methodology was not sustainable and needed to be changed; mainly because it used HB caseload levels from 2014 to 2015, prior to Universal Credit (UC) rollout, to apportion funding across LAs.

DWP, in consultation with the LA and LAA representatives on the LA Funding Group, has decided to change the methodology for allocating HB Admin Subsidy from 2019 to 2020. We will:

• move to a work led allocation model in the longer term when HB caseload volumes stabilise after UC migration has completed – the work led model estimates the volume of new claims and changes each LA’s HB caseload composition generates and uses this as the basis to apportion HB funding; aligning funding more closely to the work/costs incurred

• adopt an interim allocation methodology from 2019 to 2020 which uses the latest available HB caseload and UC caseload (with a housing element) volumes to apportion funding and UC reductions across LAs – this model aligns funding more closely with HB caseload volumes, takes into account labour market impacts and apportions UC reductions more accurately across LAs

• phase in over 3 years the impact of the change in methodology – increases and reductions in funding caused by the methodology change will be limited to one third of the difference in 2019 to 2020 and two thirds of the difference in 2020 and 2021; with all LAs moving to the new methodology in full from 2021 to 2022

To help LAs understand how the new methodology impacts them and feed the funding changes into their 2019 to 2020 fiscal planning and council tax setting processes we intend to issue a letter to all LA CFOs applying the new allocation methodology to the 2018 to 2019 allocations so that LAs can see 2018 to 2019 allocations under the both the old and new methodologies. This will be for illustration purposes only and we do not intend to change your existing 2018 to 2019 allocations. The aim is to try and give you an indication of whether the new methodology provides your LA with a greater or lesser proportion of the funding quantum. We will not be in a position to inform you of your actual 2019 to 2020 HB Admin Subsidy allocation until after the Autumn Statement announcement.

Adrian Shooter
Deputy Divisional Director (of Housing Delivery Division)

Phishing emails

1. DWP is aware that some colleagues in various LAs have been receiving phishing emails which at first look to be sent from the Data Delivery Team who are responsible for receiving your Single Housing Benefit Extract. We have also received a few reports from similar phishing emails being sent from other people within DWP’s HDD.

2. Over the last 2 years cyber criminals have used the tactic of sending phishing emails from what appears to be a DWP email address to local councils and other business partners. The ‘threat actors’ disguise the real point of origin by changing the email name displayed in the header.

3. The content is usually a document containing malware or a link to a compromised web page. The subject line often contains the DWP email display name and ‘invoice’.

4. Threat actors commonly try to marry up senders and recipients who are known to each other. DWP does not know where the information originated but we can say that it is quite an old data set and highly likely came from bulk email headers or contact lists obtained by hacking one of the email accounts in the header. We believe the breach was at a third party rather than DWP.

5. Regrettably this kind of activity is endemic across electronic communications and we can only advise that recipients do not open any attachments. If they do, they should report it to their IT security team immediately. They may also wish to report it to Action Fraud through their referral portal. If the recipient is using MS Outlook they can check the actual email origin by going to ‘File, Properties’ and looking at the box that says ‘Email Header’ which displays the true email header. This will at least allow them to determine whether it originated from DWP.

6. As these phishing emails do not originate from DWP and the sender address is only changed in the display box, we have no means of preventing this behaviour but, to be clear, the Data Delivery Team will never ask for payments and will never send out invoices.

7. Remember to stay vigilant and remind your staff to do the same, if you are unsure if the email is genuine please contact us for confirmation at ifd.shbe@dwp.gsi.gov.uk.

The story so far: Verify Earnings and Pensions

Progress

8. Verify Earnings and Pensions (VEP) has rolled out to some 300 local LAs, with tranche 5 completing rollout on 28 September 2018. To date, LAs have set over 2 million ‘interests’ against HB claims and, in the last 4 weeks alone, have processed over 17,000 alerts; with approximately 45% resulting in a change to HB.

Development highlights

9. We have continued to develop the VEP service during rollout, with ‘unstable’ alerts rolling out to LAs also on 28 September 2018, which will see alert volumes rise steadily as a result. LAs should note there is no difference in the way users will receive and process this type of alert in VEP. The change just means there will be more alerts available for LAs.

10. Several other improvements to the alerts service have been identified through closer working with LAs that include:

• improvements to the way multiple alerts are handled and distributed, along with a fix to ensure real time information is always included with the start alerts
• a change to the start date (used for the purposes of reporting management information), which will see ‘date alert generated’ replaced with ‘date alert opened’ and will enable users to manage their VEP caseload more effectively
• the duration which alerts stay in progress before being ‘auto expired’ will also be extended from 42 days to 2 months – this improvement followed feedback that alerts need to remain in progress for longer, especially when seeking additional information to support a claim
• improvements to task statistics will show alert outcomes and will enable managers to monitor progress more effectively – further planned improvements (likely to happen in November 2018) will also enable managers to view progress at user level

Integration

11. We have been working to integrate the VEP alerts service with LA IT systems and several improvements are currently being progressed which we will notify you about in due course. Stage one is currently being tested and will automate the manual process required to update HB interests in the Customer Information System (CIS) and will reduce the number of redundant alerts resulting from dormant claims. This will vastly reduce the level of nugatory work currently encountered by LAs.

Reminder: Access to data through CIS

12. LAs access DWP’s and HM Revenue & Customs’ (HMRC’s) customer information through the Employee Authentication Service (EAS) to CIS. This information is shared on the understanding that access to CIS is only permitted for the administration of:

• HB
• local council tax reduction
• local welfare provision
• adult social care financial assessments
• discretionary housing payments
• Disabled Facilities Grant
• CIS machine automated access to set/unset CIS interests and access State Pension uprating information (starting from November 2018)

13. In this context ‘administration’ represents any action including face-to-face contact with claimants, appeals, recovery of overpayments and investigation of suspected benefit fraud; also in connection with the disclosure of information as permitted by the Welfare Reform Act 2012.

14. This notice is being issued as a reminder that CIS cannot be used for any unauthorised purpose. Users must not:

• attempt to trace or access their own record or the records of friends, relatives, partners, colleagues or acquaintances or any other record for which there is no legitimate business reason for doing so
• make enquiries on behalf of colleagues in respect of friends, relatives, partners or acquaintances or anyone who is not permitted to receive information
• share EAS tokens, personal identification numbers or other identity credentials with colleagues

15. The Memorandum of Understanding (MoU) requires LAs to comply with a management checking regime outlined in the MoU section 5.5 onwards. The management checks, often referred to as ‘test checks’ are compulsory. The LA CIS Guide and DWP CIS training packages also provide details of the action which must be taken by CIS users, secure print operators and checking officers (COs).

16. LAs must ensure everyone who has access to customer information regards security as part of their everyday duties and give DWP assurances that effective measures are in place to manage access to CIS securely. The mandatory ‘test check’ regime plays a central role in reinforcing this message.

17. HDD’s Local Authority Security and Support Team (LASST) carry out a range of checks on CIS access made by staff in LAs. This includes scrutiny of test checks generated by LA staff and audit checks of those checks cleared by COs.

18. LASST and HMRC additionally interrogate CIS to validate accesses made by LA staff are for genuine business needs. These checks are carried out to provide DWP and HMRC with assurance that any access to CIS is appropriate and information obtained is correctly used.

19. Anyone found to be abusing CIS may face sanctions ranging from disciplinary action to prosecution.

20. LASST will fully support LAs conducting investigations and can provide detailed audit trails showing the access history of anyone under suspicion. DWP will support LAs to ensure appropriate action is taken and may consider prosecuting in serious cases.

21. DWP and HMRC maintain absolute discretion to withdraw access to the data supplied on any data stream. This situation may apply if it is considered an LA as a whole is not complying with the conditions set out in the MoU.

22. This includes in particular the MoU sections on LA staff working remotely, using personal devices and ensuring that all staff with access to DWP/HMRC systems and data are subjected to the relevant baselined personnel security standards requirements.

23. Enquiries relating to this item or any aspect regarding the security of CIS access should be sent to hbsdsecurity.team@dwp.gsi.gov.uk.

Reminder: LA Insight Survey Wave 36 is now live (England and Wales only)

24. The LA Insight Survey Wave 36, which focuses on discretionary housing payments (DHPs) is now live. This survey will inform the 2019 Spending Review and represents a major opportunity for LAs to have significant input into the future of DHPs. All English and Welsh LAs will be sent an online survey to complete; with a smaller number of LAs also being invited to expand on their views in a follow-up telephone interview.

25. So please look out for an email from NatCen with a link to the survey. If you have not received your email invitation by the end of October you should contact Andrew Luty on:

Phone: 0114 204 4143
Email: andrew.luty1@dwp.gsi.gov.uk

26. Your input through this survey is invaluable to us and previous impacts from recent surveys include influencing the ongoing supported housing policy and delivery discussions, improving LA/DWP workshops and gathered feedback on operational issues and challenges within specific policies such as HB backdating.

27. Finally, thank you again to everyone who took part in waves 34 and 35 of the LA Insight Survey, we’re planning to publish the findings on GOV.UK in the coming months.

Student uprating 2018 to 2019

Disregards for travel, books and equipment

28. The rates for the travel grant disregard and the books and equipment disregard have been frozen since 2010, and are again this year. For the academic year 2018 the disregard rates will remain at £303 in respect of travel and £390 in respect of books and equipment.

Loans, grants and tuition fees

29. Grants were abolished for students who began their courses on or after 1 August 2016 and they can only apply for a tuition loan and a maintenance loan. Students whose courses began before that date continue to be eligible to apply for a maintenance grant as well as a tuition loan and a maintenance loan.

30. You can find more details about the financial support available to new students and existing students at student finance loans and grants and student finance for existing students.

31. If you need further information on student uprating please contact housing.benefitenquiries@dwp.gsi.gov.uk.

Launch of new Data Matching Tools guide

32. HDD has been working closely with a number of LAs to review all the various data matching tools provided by DWP in order to further support LAs in tackling fraud and error.

33. As a result of that engagement and feedback, we have developed a guide that brings together information about all the data matching tools available to LAs in one place and supports LAs in their own work prioritisation using these tools. We intend to issue the guide to LA revenues and benefits managers within the next few days and publish it on our HB pages on GOV.UK in due course.

34. The guide has been shared with both the Practitioners’ Operational Group and tested with a number of LAs as it was being developed. The feedback on the guide has been very favourable, with LAs specifically citing the following as particularly helpful:

• the interactive nature of the guide allows you to drill through to the sections you want more information on
• the look and feel of the guide
• the bringing together of all data matching information into a single place
• usefulness extends to supporting learning and development and induction for both current and new employees
• supports a greater understanding of the links between national HB fraud and error and the data matching tools provided by DWP

35. Although use of the guide is voluntary, we would encourage you to promote its use internally within your LA, with any feedback sent to hddchange.managementoffice@dwp.gsi.gov.uk.

36. The guide has 2 distinct sections. The first supports LAs in the monthly planning of priorities and the second provides more detail on each of the specific data matching tools.

37. HDD will oversee a proactive programme of work, with regular updates, to support both the guide’s future development, ensuring it continues to meet ‘end user’ needs.

38. Key to the success of the guide will be proactive feedback from LAs on how you’d like to see it both developed and continuously improved to meet your current and future needs. We are therefore encouraging LAs to contact us with any views and or ideas via the email address given above.

Why LAs should use the data matching tools guide

39. The guide has been specifically developed and tested in response to direct LA feedback with the purpose of supporting you in prioritising resources to help tackle fraud and error.

40. The most recently published statistics for 2017 to 2018 showed that, against an expenditure of £22.4 billion on HB alone, around £1.46 billion had either been paid in error or fraudulently claimed.

41. This represents around 42% of fraud and error recorded across all DWP benefits, making tackling it a key priority for both DWP and LAs alike. The sharing and acting on data matching intelligence represents a key plank in the joint strategy between DWP/LAs, in the identification and reduction of HB fraud and error.

42. Identification and subsequent recovery of overpayments not only ensures the claimant and the tax payer receive the right service, but it reduces fraud and error and provides a funding opportunity for LAs.

43. The guide is also designed to support LAs in both considering the prioritising resource to tackle un-actioned data matching intelligence, provided by DWP, to help meet the above aims.

44. For example, the duplicate HB claim business rule (within HB matching service data) attracts a 46% hit rate and a high value of weekly monetary adjustment, but only 30% of referrals are being processed. With the HB Debt Service providing an opportunity to recover in excess of £19,000 per 1,000 HB claims in the caseload, can you really afford to miss out?

Where to find out more about the Data Matching Tools guide

45. If you want to find out more about the guide and experience a ‘live’ demonstration, please visit the DWP stand at the National IRRV conference in Telford on 9 and 10 October 2018, where Nicola Welch (currently on secondment to HDD from York LA and a key driver in the guide’s development) will be happy to address any of your questions or queries.

46. Alternatively contact HDD’s Performance Development Team (PDT) which provides a free consultancy service on how to improve administrative effectiveness, efficiencies and achieve sustainable improvements in HB delivery. By drawing on the good practices identified during PDT’s extensive consultancy support, the team offers advice on benefits administration and counter-fraud and provides help to bring about continuous improvement. For further information please email hdd.pdtconsultants@dwp.gsi.gov.uk.

HB decisions by the Upper Tribunal

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

• CH/3538/16: Capital. Beneficial ownership. Further scrutiny of the evidence needed by tribunal
• CH/4674/14 and CH/2658/15 linked cases: Removal of Spare Room Subsidy (RSRS). LA decision restored. Carmichael followed
• CH/2351/16: RSRS. Room safe for sleeping in once cleared of asbestos

48. Decisions of the UT are published on their website which can be found on GOV.UK.

49. If you have any queries about cases before the UT judges or courts, please contact us:

Email: fldmdma.customersupportservices@dwp.gsi.gov.uk
Fax: 0113 232 4841

New Legislation

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

• 2018 No.985 The Income-related Benefits (Subsidy to Authorities) Amendment Order 2018, laid on 10 September 2018
• 2018 No. 988 The Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018, laid on 11 September 2018

51. Copies of SIs can now be downloaded from legislation.gov.uk.

What’s new on our HB pages on GOV.UK

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

Document Type	Subject	Link
Circular HB A7/2018	Introduction Moving on to UC Natural migration When is a new UC claim required in a UCFS area? Change of address within an LA area New HB claims: Specified and temporary accommodation cases Managed migration Discretionary Housing Payments for benefit cap UC claimants Circumstances in which a new UC claim is required in a UCFS area	HB A7/2018
LAWD9/2018	Editorial Update: Supported housing Removal of PDF option: Universal Credit Full and Live Service Local Council Tax Reduction Update: Customer Information System (CIS) Interest Automation Update: Rollout of the Verify Earnings and Pensions Alerts service Discretionary Housing Payments mid-year monitoring return Considering becoming a new unitary authority or council? Publication of HB Speed of Processing statistics LA Welfare Steering Group and Practitioners’ Operational Group Secondment opportunities: DWPs’ HDD HB Decisions with the Upper Tribunal New Legislation What’s new on our HB pages on GOV.UK Q&A Removal of PDF functionality for UC Full and Live Service LCTR DHP monitoring form issued as a separate Appendix A	LAWD9/2018