Guidance

LA Welfare Direct 12/2021

Updated 20 December 2021

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 lawelfare.correspondence@dwp.gov.uk

Who should read

All Housing Benefit (HB) staff

Action

For information

Editorial

Much for us to ponder in this last edition of 2021. “Just where has 2021 gone?”, I ask myself. One thing is for certain, the pace of change is unrelenting.

So, what do we have for you in this bulletin? We highlight the work we are doing to further improve the flow of quality management information from the Single Housing Benefit Extract (SHBE); we are working with the IT software suppliers to deliver real time data. There is information on the Household Support Fund for English authorities and something on the rollout of a Child Disability Payment for Scottish authorities to be aware of. Hold fire please our Welsh colleagues, there is something towards the end of my editorial for you!

We have also included some additional information to help you with the Housing Benefit Award Accuracy Indicator; all of which will enable us to identify previously undeclared changes of circumstances.

Talking of help, may I also remind you my team of business consultants are open for business. Over recent months we have had the pleasure of working face-to-face again with our local authority colleagues; some things are meant for Microsoft Teams and alike but, most of our business, such as consulting work etc, can only be done in person. If you are interested in us working with you (subject of course to the impact of any new COVID-19 variants) then please get in touch at lawelfare.pdt@dwp.gov.uk

Last, but not least, we mention the Housing Benefit Assurance Process and the standard requirement for authorities to confirm a reporting accountant by no later than 1 March 2022. I said I would have something towards the end for our Welsh colleagues – something for you to look forward to, St David’s Day, springtime, and daffodils!

All that remains for me to say is I hope you and your loved ones all enjoy a well-earned rest over the festive season and I send my very best wishes to you for a healthy 2022.

Jonathan Bottomer
Head of Performance Development

Transforming the Single Housing Benefit Extract returns to the Department for Work and Pensions

1. Currently all local authorities (LAs) share their Housing Benefit (HB) administration data with the Department for Work and Pensions (DWP) on a four-week rolling cycle. LAs manually extract details of their entire HB caseload, save and send it to DWP using the Single Housing Benefit Extract (SHBE) process.

2. SHBE data is used across DWP for a variety of purposes, including fraud and error data matching and HB analysis. Currently data received by DWP can be up to three months out of date, which can cause inaccuracies in the data.

3. DWP has been working closely with our digital group and LA IT software suppliers on a project to identify ways for LAs to send their SHBE data via a ‘real time’ Application Programming Interface (API). Using this approach also fits with DWPs’ strategic view for data sharing.

4. A SHBE automation/replacement solution will deliver a modern, reliable and easy to use HB service that will provide on-demand data to DWP end users. This will allow more up to date HB data to be included in all the data shares and data matching that DWP already sends to LAs.

5. DWP has carried out detailed analysis to understand the benefit of undertaking this replacement solution. A real time SHBE feed is the preferred option to support essential historical trend analysis allowing production of reliable statistics for publication on GOV.UK.

6. The benefits will:

• remove the burden of manual extraction, data checking, saving and export by LA administrative teams
• mitigate against the risk of data loss. Only the changed data is transferred through the approved secure route instead of the entire HB caseload
• improve processing times. Data can be made available on a more frequent basis with less data lag as it is updated automatically on a daily basis
• provide the opportunity for ‘real time’ data matching to support critical projects such as Universal Credit migration and HB transitional protection
• improve analytical outcomes and management information (MI) reporting
• increase the hit rates of HB data matching rules between 12% to 20% (based on a similar improvement made to another data share)
• reduce the nugatory efforts in LAs, increasing detection of fraud, customer error and official error in HB
• reduce the time and resources required by DWPs data management team to ensure all data is received
• remove the need for DWPs data management team to monitor and check returns have been received from all LAs.

7. This project is part of DWPs ongoing efforts to improve our existing data shares with LAs, as well as our work to introduce new data shares. We want to support our LA partner organisations in continuing to deliver efficient local welfare services, at the same time as improving customer service.

Next steps

8. We are currently working with LA IT suppliers to start a proof of concept to prove that:

• LAs can send all the SHBE data in ‘real time’
• DWP can accurately receive SHBE data and distribute it to the correct end users so they can accept and interrogate the data

9. Following the proof of concept, DWP will work with LA IT Suppliers and a selection of LAs from each LA IT Supplier to test and implement the final solution in 2022. DWP will then work with all LAs to migrate over to the new SHBE automated solution based on their level of readiness.

10. Further information regarding progress of the SHBE API solution will be communicated to the Practitioners’ Operational Group (POG) and LAs as the project progresses.

11. If you need any further information contact lawelfare.ladsdeliveryteam@dwp.gov.uk

Care Home Information Service digital solution

12. The LA Partnership, Engagement and Delivery division (LA-PED) and digital colleagues from DWP are working on a digital solution to receive care home admission and discharge notifications directly from LA Adult Social Care (ASC) systems.

13. At present DWP relies on the customer or their next of kin, appointee or representative to notify the department of the admission or discharge dates. The transfer of data in real time will prevent unnecessary overpayments and underpayments and subsequent debt recovery action at a time of vulnerability for claimants and/or their families. It should also result in significant reductions in fraud and error.

14. LAs will benefit as it will result in a reduction in contact from DWP operational staff requesting funding data when the claimant, next of kin, appointee or representative either cannot or does not supply the necessary information.

15. The Care Home Information Service (CHIS) project has engaged all LA ASC software suppliers, as well as those LAs who develop their own ASC systems in-house. CHIS is working with them to determine costs and timescales based on the technical requirements for the proposed CHIS solution.

Next steps

16. We will be setting up meetings in December 2021 with a representative sample of LA ASC financial assessment staff as well as those staff who input care home admission data direct to the ASC systems. This will help us understand from an LA perspective the issues when a customer moves into a care home.

17. When we enter our testing phase, we will ask for one LA from each ASC supplier (and all the in-house developers) to be early adopters to support this testing.

18. The aim is to complete the majority of the work by March 2022 but the exact implementation date has yet to be confirmed.

19. If you need any further information or you would like to participate in our ongoing LA research meetings to discuss and understand how this impacts your business processes contact lawelfare.ladsdeliveryteam@dwp.gov.uk

Update: National Fraud Initiative

20. The National Fraud Initiative (NFI) matches for financial year ending (FYE) March 2021 were released to DWP and LAs in January 2021. These matches are delivered every two years and aim to identify fraud and error in HB only cases and related DWP administered benefits using a range of data sources.

21. The matches relating to DWP administered benefits are only released to DWP, thereby significantly reducing the volume of matches that LAs need to action.

22. The HB only data held by NFI was refreshed in November 2021 and the student loan data was also refreshed at the same time. This included information for the majority of students entering higher education in September 2021.

23. These data refreshes have enabled NFI to undertake a supplementary match between these datasets to identify new potential fraud and error cases. NFI expect these matches to be released to LAs from mid December 2021.

24. To help support LAs in dealing with these matches, NFI has taken steps to reduce false positives and filter the matches requiring review. This should assist LAs to identify cases that are for either compliance or investigation. LA action required

25. The Student Loan matches within the NFI tool have historically proven to be the most productive of the NFI matches. Once LAs receive these matches it is important that action is taken as quickly as possible to sift cases, especially as many students’ courses are likely to end in June 2022.

26. Should you need to contact DWP for further information regarding these matches, you should follow the normal business as usual procedures.

27. For NFI queries contact nfiqueries@cabinetoffice.gov.uk

Update: Supported and temporary accommodation SHBE MI improvements

28. As part of DWPs effort to improve quality and value for money on supported and temporary accommodation it is essential for DWP to understand more about HB expenditure.

29. LA-PED division has recently been reviewing the available MI for specified accommodation claims and it’s been noted there is a significant undercount of such claims across the UK. Along with the significant undercount, LA-PED has also identified various discrepancies in the use of markers.

30. Several LAs have raised concerns about the quality and value for money of supported and temporary accommodation and LA-PED has recognised that improved data to inform policy decisions in this space is critical. Therefore, we need LAs help to improve the quality of the data.

31. LA-PED has already engaged with LA representatives and IT Suppliers to explore how DWP data can be improved for LAs. As a result of this engagement IT Suppliers have made some minor changes to LAs IT which they aim to deliver by April 2022.

32. To ensure a consistent approach to recording this data the existing front-end fields have been reorganised and simplified to enable a more intuitive process for the required data.

What does this mean for LAs

33. From April 2022, there will be changes to the appearance to some of the existing front-end fields and some new fields will be added for recording a new supported accommodation or temporary accommodation HB claim.

34. Validation will be built in to ensure that LAs set the appropriate markers for all cases which will avoid duplication or incompatible markers being set.

35. A key feature of the new IT release in April 2022 will be a property register developed by LA IT suppliers. It will support the automated population of front-end IT systems and although maintenance of the property register will not be mandatory, it is considered the most efficient solution.

36. In order to support completion of the property register, some LAs may want to consider capturing data ahead of its release. There will be some IT suppliers who will be able to make the register available to some of its users ahead of the main IT release. This should enable some LAs to start populating the register in preparation of the full IT release, should they choose to do so. LA-PED will notify those LAs who will have early access to the new property register in due course.

37. The register will hold details of supported and temporary accommodation properties and will collate information to populate all the necessary SHBE MI requirements necessary at claim level, as well as making additional data available to support those LAs who currently maintain local registers.

38. The register has been developed for LAs. DWP will not get the property register directly from LAs, only information held on the LA IT Systems informed by the property register, which feeds into the SHBE fields. DWP will only use the data which has been derived from the SHBE fields for HB related purposes.

39. DWP will continue to work with LA representatives to support the implementation of this IT change and ensure impacts are captured and understood.

40. LAs can find questions and answers on this matter at Annex A.

Reminder: Procurement of reporting accountants for the FYE March 2023 HB Assurance Process

41. As part of the HB Assurance Process (HBAP) DWP has published a number of instructional and guidance modules.

42. Module 1 (which includes the standard engagement terms for the HBAP) was originally issued in March 2018, supported by further guidance in circular HB S7/2018.

43. This is a reminder that as part of the standard engagement terms each LA is required to provide DWP with notification confirming the procurement of a reporting accountant to carry out HBAP testing in relation to financial year ending (FYE) March 2023 by no later than 1 March 2022.

44. Included below is the relevant extract from Module 1 of the HBAP guidance.

Role of the LA

45. Module 1 includes the relevant responsibilities and timings pertinent to the receipt of the reporting accountant notification as follows:

• the LA is required to appoint a reporting accountant by 1 March prior to the commencement of the financial year for which this procedure will apply, to perform the specific test requirements set out in the DWP’s HBAP modules in force for that year
• if the LA fails to appoint a reporting accountant by the deadline of 1 March the Secretary of State may withhold part or all of subsequent payments of subsidy. The amount and scale of withholdings will be the decision of the Secretary of State. When the LA confirms the appointment of a reporting accountant the subsidy withheld can be released
• it is for the LA to appoint a reporting accountant to undertake this work and notify the DWP of the successful appointment, no later than the 1 March prior to the commencement of the financial year for which this procedure will apply.

Multiple year arrangements covering FYE March 2022 and FYE March 2023 reporting periods and future years

46. If an LA secured a multi-year engagement with a reporting accountant that covers HBAP in respect of the FYE March 2022 and FYE March 2023 and previously notified the DWP of that engagement, then a further notification is not required.

47. The notification confirming the audit firm procurement should include the:

• name of the audit firm
• length of the contract
• lead audit contact name
• audit office location

48. The notification should be forwarded to lawelfare.hbassurance@dwp.gov.uk

Refresh of HBAP Module X for FYE March 2021

49. DWP has recently refreshed HBAP Module X: DWP reporting framework instruction for further work. The updated module will apply to further work requests in respect FYE March 2021.

50. The refreshed Module X along with other HBAP modules is now available.

51. If you have any questions regarding this article contact lawelfare.hbassurance@dwp.gov.uk

Rollout of Child Disability Payment (Social Security Scotland)

52. Child Disability Payment (CDP) is a new benefit from Social Security Scotland (an executive agency of the Scottish Government) and replaces Disability Living Allowance for children (DLAc) for eligible claimants living in Scotland.

53. Following the successful implementation in Dundee City, Perth and Kinross, and the Western Isles, CDP has now been rolled out nationally across the whole of Scotland.

54. Claimants across Scotland can now make a new claim to CDP from 22 November 2021.

55. Eligible claimants must be under the age of 16 to apply but can remain entitled up to the age of 18.

56. New claims for DLAc will not be accepted in Scotland from 22 November 2021.

57. From 11 October 2021 DWP began the process of transferring existing DLAc claimants over to CDP. Cases are being transferred in age groups beginning with those aged 15 years 6 months followed by those aged 16 and over, to avoid the need for those individuals to apply for Personal Independence Payment.

Updated HB subsidy claims good practice guide

58. DWP has recently updated the HB subsidy good practice guide. The guide includes the volume and classification of error exceptions in HB subsidy claims which have been identified during the HBAP from FYE March 2016 up to FYE March 2020.

59. The guide highlights good practices obtained through DWP engagement with LAs, audit firms and other external stakeholders. If applied this could address and reduce the volume and classification of error exceptions in HB subsidy claims.

60. The guide replaces the previously published HB subsidy claims: local authority best practice guide and will be updated on an annual basis following the delivery of the HB subsidy workshops.

61. For further information contact lawelfare.hbassurance@dwp.gov.uk

Invitation to an all LA call about data sharing legislation

62. In early November, LA-PED hosted a video conference with LA members of the LA Welfare Steering Group (LAWSG) and POG at their request to discuss data sharing legislation and associated matters.

63. As fed back to LA-PED, the conference succeeded in providing more clarity and insight on a number of data sharing related areas, including:

• the Digital Economy Act including the advantages and disadvantages of using it
• a summary of what DWPs legal gateways already allow DWP to do in terms of data sharing
• capacity and financial constraints in DWP; the main barrier stopping us from fulfilling LA requests for increased data sharing
• the main current LA requests we are receiving; what we are doing to fulfil some of them and why we aren’t fulfilling others
• the DWP/LA Memorandum of Understanding and what LAs would like to see change in terms of the content
• practical next steps that can be taken straight away to consider further

64. LAWSG and POG also suggested that LAs would benefit from attending a similar session. Therefore, a video conference using Microsoft Teams will be held for all LAs on Tuesday 25 January 2022 at 10am until 11.30am.

65. Dial in details for the call and the MS Teams joining link has been sent to all LAs’ single inboxes.

66. If the meantime, if you have any queries contact paul.selby@dwp.gov.uk

Reminder: Invitation to the next HB Award Accuracy Initiative all LA call

67. The next HB Award Accuracy (HBAA) Initiative conference call will be held on Wednesday 8 December 2021 from 11am to 12:30pm. The joining details were sent to each LAs’ single inbox on 17 November 2021.

68. This call is for all LAs regardless of their current participation in the Initiative.

69. The call will focus on the plans for year three of the Initiative from April 2022. LAs will have the opportunity to ask questions and discuss issues relating to the Initiative.

70. Please join the event five minutes before the start time as we aim to start promptly.

71. If you have any questions contact lawelfare.frauderrordebt@dwp.gov.uk

Planned update of the HBAA Initiative frequently asked questions

72. We are in the process of reviewing the HBAA Initiative frequently asked questions which can be found on Glasscubes. The updated version will be available from week commencing 6 December 2021.

73. The HBAA Initiative guidance for year two (FYE March 2022) is available in circular HB A6/2021

Internet browsers for LAs accessing DWP internet based applications

74. Microsoft has retired Internet Explorer. Therefore, DWP internet based applications (such as Searchlight, Transfer Your File and Verified Earnings and Pensions) will no longer be accessible when using this product.

75. Moving forwards, LAs will need to ensure they are using the latest version of one of the internet browsers listed below to access DWP internet based applications:

• Microsoft Edge
• Mozilla Firefox
• Google Chrome/Chromium
• Apple Safari

76. For further information contact lawelfare.lasupport@dwp.gov.uk

Household Support Fund (England only)

77. On Thursday 30 September 2021, the government announced a £500 million Household Support Fund to provide targeted support for the most vulnerable households over the winter period.

78. The Barnett formula has been applied in the usual way to the Household Support Fund. Therefore, the devolved administrations will receive up to £79 million of the £500 million. (£41 million for the Scottish Government, £25 million for the Welsh Government and £14 million for the Northern Ireland Executive). It will be for the devolved administrations to decide how to allocate this additional funding.

79. The funding covers the period 6 October 2021 to 31 March 2022.

80. DWP will provide the funding to County Councils and Unitary Authorities (including Metropolitan Councils and London Boroughs) for England only, who will administer and distribute the funding and provide direct assistance to support families with children, other vulnerable households and individuals. The funding will be used to support those most in need across England with the cost of food, utility bills and household costs.

81. Clare Elliott (Head of LA-PED division) wrote to English County Councils’ and Unitary Authorities’ Chief Executive Officers and Chief Finance Officers (copied to all LA Revenues and Benefits managers) on 6 October 2021 to launch the scheme, set out the next steps and provide an outline eligibility framework. LA-PED has also held a conference call for LAs to begin discussions around delivery and MI reporting arrangements.

82. LA-PED will continue working with LAs to ensure the successful delivery of the scheme.

83. Detailed guidance for English LAs is available on www.gov.uk

HB decisions by the Upper Tribunal

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

• CH/1719/20 - DWP joined as an interested party. Appeal concerns an interpretation of a right to reside as a former family member of a European Economic Area national.
• CH/713/21 - DWP joined as the first respondent in the appeal concerning the meaning of ‘claim for benefit’ as defined in paragraph (c) of that definition in regulation 2(1) of the SS (Claims and Payments) Regulations 1987’ and the backdating rules in the HB Regulations 2006 - 83(5)(a) impact on the application of the SDP gateway in regulation 4A of the UC (Transitional Provisions) Regulations 2014.
• CH/1041/20 - Remitted - overpayment of HB - HB paid directly to Landlord. Tribunal made a legal mistake by failing to appreciate the landlord should have been added as the second respondent to the appeal, as per Section 75(3) of the Social Security Administration Act 1992 which says that a recoverable overpayment of HB “shall be recoverable … from the person to whom it was paid”.

85. A selection of decisions of the UT are published on their website. Do be aware that there is an undefined time lapse between decisions being issued and their appearance on the website.

86. If you have any queries about cases before the UT Judges or courts email quarryhouse.dmaleedscustomersupportservices@dwp.gov.uk

New Legislation

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

• Universal Credit (Exceptions to the Requirement not to be receiving Education) (Amendment) Regulations 2021 Statutory Instrument SI 2021/1224, laid on 4 November 2021
• Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021 Statutory Instrument SI 2021/1237, laid on 8 November 2021
• Universal Credit (Work Allowance and Taper) (Amendment) Regulations 2021 Statutory Instrument SI 2021/1283, laid on 18 November 2021
• Occupational Pensions (Revaluation) Order 2021 Statutory Instrument SI 2021/1308, laid on 25 November 2021

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

What’s new on our HB pages on www.gov.uk

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

Document Type	Subject	Link
LAWD11/2021	Editorial Housing Benefit Award Accuracy: Capita systems only Breathing Space contact details for LAs Reminder: Payment Deduction Programme partial reconciliation conference call Invitation to the next Data sharing and IT consultation forum and engagement forum Sanctions for new style Jobseekers Allowance and Employment and Support Allowance claims Publication of HB Speed of Processing statistics for April to June 2021 HB Decisions with the Upper Tribunal New Legislation What’s new on our HB pages on www.gov.uk	LAWD11/2021
LAWDLite11/2021	Secondment opportunity in Housing Policy Division	LAWDLite11/2021
Circular HB S11/2021	Housing Benefit Award Accuracy Initiative funding for financial year ending March 2022 for local authorities participating from 4 October 2021	Circular HB S11/2021

Annex A

Questions and answers: Supported and temporary accommodation SHBE MI improvements

Q1. Will we get New Burdens for the population/ongoing maintenance of the property register?

A1. No, the concept of the property register was put forward by the LA IT software suppliers to support LAs inputting the data onto their HB systems – to make it quicker, easier, and more consistent. This should enable greater automation of the ‘front end’ IT systems saving on agent input and safeguarding accuracy. If LAs don’t chose to use the property register, then they can populate the fields manually.

Q2. When will the IT release be available to LAs to download?

A2. It is important for LAs to download the software as early as possible following the IT release. The release dates will be as follows:

• Civica - Phase 1 - TBC (property register only)
• Civica - Phase 2 - 25 April 2022
• NEC - 4 April 2022
• NEC - TBC (property register)
• Calderdale - 28 March 2022
• Sedgemoor - 13 December 2021
• Capita - Phase 1 Release 91.0 9 December 2021 (property register only)
• Capita - Phase 2 Release 92.0 13 April 2022

Q3. What about information currently held for supported/temporary accommodation cases on our IT Systems?

A3. Initially, this solution is about ensuring new claims are recorded accurately. However, the LA IT software suppliers will be looking to migrate data currently held to populate new IT Systems fields where possible. Where the information is rejected due to incompatibility with new functionality/validation rules, cases will fall into an exceptions file for LAs to action separately.

Q4. Will we be asked to correct inaccurate information on LA IT systems held for supported/temporary accommodation cases ahead of the release?

A4. At present, there is no requirement for LAs to undertake this activity unless they wish to do so voluntarily.

Q5. Can we ensure the changes and definitions to support input to IT systems are picked up in guidance for LAs?

A5. Yes, guidance will be provided which will instruct LAs how to complete the amended existing front-end fields as well as the new fields; ensuring all definitions are clear and explained. We will be engaging with LAs to review the guidance prior to publication.