Guidance

LA Welfare Direct lite 10/20

Updated 11 December 2020

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Contact

If you have queries about the:

Who should read

All Housing Benefit (HB) staff.

Action

For information.

Closing outstanding and dormant interventions on systems and the impact on management information

1. We have received a number of queries from local authorities (LAs) seeking advice on what they should do with long outstanding and dormant work held within intervention systems. In other words, where a fraud and error detection activity has been initiated (captured in Single Housing Benefit Extract (SHBE) field 171) but an outcome activity entry has not been populated.

2. Many LAs would like to close these old activities, so that they can manage their Housing Benefit (HB) Award Accuracy Initiative work more effectively without impacting the management information provided to the Department for Work and Pensions (DWP).

3. From a DWP perspective, there is no obligation at this time for LAs to ‘close’ these old activities but we understand that some LAs may wish to do so as part of system ‘cleansing’ activity. DWP’s advice to LAs is that you can close/cleanse these long outstanding activities by carrying out both these actions:

  • inputting a date the fraud and error detection activity completed (captured in SHBE Field 175)
  • recording the outcome as not known/not recorded within the outcome of fraud and error detection activity (captured in SHBE Field 176)

4. These actions should not result in any change to an HB award or generate an error record.

5. LAs should note that, for HB Award Accuracy Initiative monitoring purposes, we will only be extracting interventions with a start date that’s within the scope of the Initiative (phased from 7 September 2020). So, LAs should ensure that they only apply this type of case cleansing activity to cases that hold a date the fraud and error detection activity initiated prior to 7 September 2020. Where the date initiated falls on 7 September 2020 or later then LAs should complete all the appropriate fields in accordance with their supplier guidance for the HB Award Accuracy Initiative or other types of fraud and error activity.

6. If you have any questions, email lawelfare.frauderrordebt@dwp.gsi.gov.uk

New debt letter rules

7. The letters borrowers receive from their lenders when they are seriously behind on repayments will be easier to understand and less intimidating as a result of new rules proposed by the HM Treasury on 7 October 2020. The new rules will support people in ‘problem debt’ and help them to better understand and manage their debts; reducing distress and supporting mental health. The new rules will be delivered through secondary legislation and are expected to come into force in December 2020. All lenders will then be required to make the changes within six months.

8. You can find more information on new debt letter rules.

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