Industry News


Criminals target new benefits system


The Government’s flagship reform of the welfare benefits system has been targetted by criminals who are fraudulently claiming millions of pounds and leaving legitimate claimants out of pocket. A BBC News investigation revealed how a


major flaw in the Universal Credit system is being exploited. This allows criminals to make bogus on-line claims for hardship relief loans on behalf of claimants, who are then responsible for repaying loans often amounting to £1,500 per person. It was reported that thousands of


fraudulent claims were being made each month, with much of the activity centred on the north west of England. Over 1.5 million people are currently being paid benefits through the Universal Credit system, which rolls six separate benefits into a single payment. New claimants have to wait upto five weeks for their first payment. Benefit claimants are being exploited by the


criminals who often pose as officials, or as people who can help them to access financial help. Once the loan, typically of £1,500 is paid into the claimant’s bank account, the criminal demands a “fee” of about £1,000. Claimants then find their legacy payments


of child benefit, housing benefit or jobseeker’s allowance have stopped and they have been transferred onto Universal Credit. The hardship loan is supposed to help them


with their transition onto the new payment system, but the loan is a debt which needs to be repaid. This in turn is pushing claimants into arrears with their rent and council tax, which could see claimants losing their homes. The BBC found evidence that staff at the


Department of Work and Pensions were fully aware of the scam and had been for some time. It reported that at one job centre more than a third of claims were suspected of being bogus. The irony is that Universal Credit was


meant to reduce levels of fraud in the system and yet here was evidence that it’s design was helping criminals to make millions of pounds from it. The Department for Work and Pensions


said it had already secured its first conviction for this type of fraud. DWP minister Baroness Buscombe said:


"We're encouraging people to listen to their instincts. If someone offers you a low-cost loan from the government, they may be trying to steal your identity. "Treat your personal information for


benefits in the same way you would for your bank. And if you think you've been targeted, we urge you to report it urgently."


Completion of new social housing rises almost 5 per cent


almost five per cent in the past year according to official statistics. Completions for the 2018/19 year rose 4.8 per


T


cent to 30,470, up from a combined total of 29,070 in the previous year. HAs contributed 27,910 new homes and councils built 2,560 – the latter was up by 30 per cent from the 1,960 they contributed to the total in 2017/18. Final quarter completions fell to the lowest


figures recorded for the year by both HAs and councils, with the January to March totals falling to 6,830 and 550 respectively, down from 7,220 and 580 in the October to December third quarter. New starts in the final quarter were also


disappointing, as HAs and councils both recorded their lowest three month totals during the year. HAs started 5,810 new homes while councils started just 380 new homes. The figures were down just over 1,000 new home starts on the previous quarter, but were remarkably similar to the sluggish figures at the end of the previous year. On a brighter note the annual figures for new starts were up for both HAs and councils, at 25,070


20 | HMM August/September 2019 | www.housingmmonline.co.uk


he completion of new social housing properties in England by housing associations and local authorities rose by


and 2,460 respectively, from 24,730 and 1,630 a year earlier. The joint figure of 27,530 new home starts was up 4.4 per cent on the previous year. However, the figures represent disappointing


totals overall as they fail to make a significant impact on the hundreds of thousands of households on local authority waiting lists. When the figures are combined with those from


the private sector, it showsthat over the whole of 2018/19, the number of houses started rose just one per cent to 162,270 homes, while completions jumped six per cent to 169,770 new homes. It is only when figures for conversions are added


to these new build figures that the new homes total rises to a more respectable 240,000 to 245,000 new homes – the highest number for many years, although still some way short of the Government’s target. MPs on a select committee have warned the


Government they risk never hitting the 300,000 new homes target unless they embrace modern methods of construction. The Housing, Communities and Local Government Committee said ministers needed to increase capacity and improve investor confidence in the sector if it is to have a meaningful impact on annual housebuilding targets.


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