The Committee’s approval was sought to extend the Council’s Counter Fraud Service agreement with Reigate and Banstead Borough Council (RBBC) for a further three years from 1 April 2022 to 31 March 2025. Officers also recommended increased resources to combat fraud for which approval of a supplementary estimate in the sum of £12,700 was required.

Members recalled that in 2014 the Government transferred responsibility for Housing Benefit Fraud Investigation to the Department for Work and Pensions (DWP).  The Council decided at that time to fund its own Fraud Investigation team, the remit of fraud being wider than Housing Benefit.  To supplement the service, the Council entered into an agreement with RBBC in 2019.  When the Council’s internal resource left in 2021, RBBC increased the provision to 2.5 fte.  Officers advised that the team at RBBC was well resourced.  The service they provided to Runnymede as well as three other local authorities in Surrey was highly regarded as were their links with Trading Standards and an Accredited Financial Investigator based at Portsmouth City Council.  In addition, it was noted that the service had twice been recognised by the Institute of Revenues, Rating and Valuation (IRRV) as winners of the category for ‘Excellence in Counter Fraud (2019 and 2022), and for ‘Excellence in Partnership Working’ in 2021.

Members noted the current performance of the contract; both proactive and reactive and the timeframes for investigation and interventions.  Reported savings to the Council since 2019 were impressive: 2019/2020 - £154,650, 2020/2021 - £533,040 and for 2021/2022 - £170,527.  Officers agreed to provide the Committee with how many cases had been dealt with and what the savings related to.

The Committee was given three options for the future of the contract.  In essence, two of these were to reduce resources, or maintain the increased level of resource.

Members were fully supportive of Option 2, maintaining the current resource which included approval of an additional 0.5 fte, working with RBBC on proactive cases outside of Housing which would allow Officers to dedicate more time to deal with reactive referrals from within the Council or from local residents. 

The Committee was pleased that RBBC had agreed to keep the costs for the first half of the year in line with the previous resource levels.  Therefore, the actual cost of the service for 2022/2023 was £115,045, representing a saving of £19,045.  The total cost going forward was £134,090, plus an uplift on salary costs of 2% per annum for each of 2023/2024 and 2024/2025.

Members were informed that as the majority of work was Housing related that the costs would be split 80/20 between the Housing Revenue Account and the General Fund as agreed with the Chairman of the Housing Committee.

The Committee noted the legal and financial implications in the report.

Members commended Officers for the continued success of the Counter Fraud Service and the savings made for the public sector.

RESOLVED that –

i)          a further 3 year agreement with Reigate and Banstead Borough Council from 1 April 2022 to 31 March 2025 for the provision of a Counter Fraud Service be approved; and

ii)         Corporate Management Committee be recommended to approve a supplementary estimate of £12,700, to be split 80/20 between the Housing Revenue Account and the General Fund, following consultation with the Chairman of the Housing Committee