Council’s housing benefit blunders cost nearly £2m

HOUSING benefit payment errors totalling almost £2m have been made by one council in a single year, according to a new report.

Bridgend County Council both underpaid and overpaid claimants due to human error in the 2016-17 financial year, a watchdog found.

The Wales Audit Office (WAO) said that, among the test cases, errors ranged from as high as £1,889 to as low as 30p, caused by mistakes in the recording of earned income and deductions, changes in rent and housing occupancy.

In a report considered by Bridgend Council’s audit committee on Thursday, the WAO said the local authority should seek to repay those underpaid and decide whether to recover or write off overpayments.

A council spokesman said it takes the findings seriously and strives for 100% accuracy. But it said most of the errors related to amounts of £50 a year or less.

The WAO report said the council “has generally sound accounting and financial reporting practices”. But it said some areas needed to be strengthened and found “a high proportion of errors” in housing benefits claims.

Out of a sample of 45 claims tested, it said 11 had been incorrectly processed and paid, with errors totalling £3,087.06. Using the findings of the sample, it extrapolated a “hypothetical estimate” of the overall error in payments to be £1.9m.

The watchdog said the council should strengthen training and management of housing benefit staff.

Bridgend County Independents, a group representing some independent councillors, has called for the council “to carry out a full and transparent review”.

A statement posted on their Facebook page said: “While we are of course alarmed at any overpayments at a time when they are cutting the education budget by £800,000 and cutting back essential services, we are deeply troubled that people and families in need may have been pushed further into hardship as a result of underpayments.”

A council spokesman said: “We take the findings of the Wales Audit Office report very seriously, as the council strives for 100% accuracy when processing housing benefit claims.

“Around two-thirds of the errors identified by the report related to amounts of £50 a year or less, or the equivalent of £1 a week. All of the inaccuracies have been addressed, and we are in the process of implementing improved procedures.”