Northern Ireland

Housing benefit fraud and error still 'unacceptable' says Audit Office

Mr Donnelly's report also noted that LPS informed him of a fraud investigation, which was revealed by The Irish News in July
Mr Donnelly's report also noted that LPS informed him of a fraud investigation, which was revealed by The Irish News in July

HOUSING benefit fraud and error continues to be unacceptably high, the Northern Ireland Audit Office (NIAO) has said.

Fraud and error amounted to £4.9 million in 2018/19 – more than 13 per cent of total housing benefits administered by Land and Property Services (LPS), and an increase on the £4.5m in 2017/18.

The £4.9m comprised of £1.6m customer fraud, £2.9m overpayments to claimants due to official or customer error, and £0.4m underpayments to claimants because of official error.

LPS, part of Stormont's Department of Finance, administered £38.1m of housing benefit to claimants who own their own home in 2018/19.

Its accounts were given a qualified audit opinion by NIAO for the ninth consecutive year because of the levels of fraud and error in housing benefit expenditure.

Comptroller and auditor general Kieran Donnelly said that despite improvements, fraud and error rates "continue to be unacceptable".

Ratepayer debt outstanding by March 2019 was £124.5m compared to £125.8 million at the same point last year. The amount written off in 2018/19 was £15.9m compared to £19.3m in 2017/18.

Mr Donnelly's report also noted that LPS informed him of a fraud investigation relating to misappropriation of rates refunds due on customer accounts.

The Irish News revealed in July that Stormont chiefs had launched this probe. A source said officials were examining claims that refunds were wrongly redirected into other people's bank accounts.

The fraud was believed to be in the region of £120,000, the Belfast Telegraph reported in October.

The finance department last night said a civil servant has since been "dismissed" and a police investigation was under way.

The PSNI said a man was arrested on suspicion of "fraud by abuse of position" and was later released on police bail pending further enquiries.