Credibility of benefit pilot in question

by Gemma Charles

The credibility of a flagship scheme aimed at easing the housing benefit crisis is being questioned after it emerged that just one council in the worst-hit part of the country has applied.

The government has even extended the deadline for applications from councils in the capital for the verification framework pilot scheme after Croydon's bid to take part was not accepted. The news has prompted widespread disappointment with one housing association chief executive saying it called the credibility of the whole scheme into question.

Under the pilot project, due to be officially launched next week, housing associations will take on some of the verification of their tenants' claims on behalf of the council (Inside Housing 30 March 2001).

This has long been called for by the National Housing Federation which claimed housing associations have lost thousands as a result of the housing benefit backlog. But Inside Housing has learned that despite a 60 per cent rise in complaints about housing benefit in the capital only Croydon, whose service is run by contractor CSL, put itself forward to take part.

It is understood that the Department for Work and Pensions wanted only one council with an out-sourced service and Sheffield Council's bid, which also uses CSL, was deemed to be stronger.

The DWP told Inside Housing that it is extending its deadline for the scheme to January 2002 in a bid to get at least one London representative.

A spokesperson said: ‘It's really important that we have a London authority. We have written to those that comply with the verification framework and they can submit a late bid.'

Gwyneth Taylor, head of housing at the Local Government Association, said it was disappointing that no authorities from the capital would be taking part but stressed the scheme was voluntary. ‘There's a fair amount to the pilots. It's not something to be taken lightly. What we didn't want was additional burden on authorities which have problems,' she said.

Brendan Sarsfield chief executive of Hackney and New Islington Housing Association said the news represented a ‘big disappointment'.

‘The question is, does the scheme have credibility if it doesn't have London partners?'
The government will announce the successful councils and RSL partners next week.

Birmingham, in partnership with Black Star, Focus, Midland Area, St Basil's and Trident housing associations, have been approved as has Sheffield Council. A consortium of councils in Norfolk is also among the frontrunners.

See also
Tories attack benefit fraud ‘scandal'
Government to set benefit standards
Benefit claims soar in foot and mouth crisis

LINK
Click here to go to the Department for Work and Pensions web site.