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02/03/2012
Fraud And Error On Rates Increases To £4.2m
The amount of fraud and error for housing benefit on rates assessments in Northern Ireland has risen to £4.2 million, according to the Northern Ireland audit office (NIAO).
A lack of reporting from customers and gaps in the skills of staff was blamed for the increase.
Mr Kieran Donnelly, Head of the NIAO, said: "I welcome that during a difficult economic climate, the Agency has increased the amount of revenue collected to over £1billion as this money is a critical source of funds in paying for central and local government services. However, it is important that the Agency continues to apply every possible means to maximise the level of rate revenue collected which includes reducing overall debt and, in particular, the high level of prior year debt."
During 2010-11 the level of receipts collected exceeded £1 billion for the first time ever, representing a 5% increase over receipts in the previous year. This represents a collection rate of 96.4%.
Total ratepayer's debt at 31 March 2011 was £156 million, a reduction of £1 million on 31 March 2010. £65.9 million of the £156 million debt relates to rate bills issued in years prior to 2010-11, 42% of total debt. LPS has estimated that some £33 million of total debt at 31 March 2011 will probably not be recovered. In addition to this estimate of debt that will probably not be recovered, £15.2 million of debt considered irrecoverable was written off by LPS during the year. This compares to £10.2 million written off in the previous year. Indications are that the write-off in 2011-12 could rise to £20 million.
The Land Property Services (LPS) is undertaking a number of initiatives to improve customer awareness and redesign the housing benefit literature.
(CD/GK)
A lack of reporting from customers and gaps in the skills of staff was blamed for the increase.
Mr Kieran Donnelly, Head of the NIAO, said: "I welcome that during a difficult economic climate, the Agency has increased the amount of revenue collected to over £1billion as this money is a critical source of funds in paying for central and local government services. However, it is important that the Agency continues to apply every possible means to maximise the level of rate revenue collected which includes reducing overall debt and, in particular, the high level of prior year debt."
During 2010-11 the level of receipts collected exceeded £1 billion for the first time ever, representing a 5% increase over receipts in the previous year. This represents a collection rate of 96.4%.
Total ratepayer's debt at 31 March 2011 was £156 million, a reduction of £1 million on 31 March 2010. £65.9 million of the £156 million debt relates to rate bills issued in years prior to 2010-11, 42% of total debt. LPS has estimated that some £33 million of total debt at 31 March 2011 will probably not be recovered. In addition to this estimate of debt that will probably not be recovered, £15.2 million of debt considered irrecoverable was written off by LPS during the year. This compares to £10.2 million written off in the previous year. Indications are that the write-off in 2011-12 could rise to £20 million.
The Land Property Services (LPS) is undertaking a number of initiatives to improve customer awareness and redesign the housing benefit literature.
(CD/GK)
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