Benefit fraud busters; Knowsley worst in UK for housing cash cheats.

Byline: Ta riqTahir

FRAUD busters are to be sent into a Merseyside council to help cut the amount of money lost to dishonest benefit claimants.

Kno wsley, along with seven other authorities in Britain, is to be assessed to see if it is doing all it can to stop fraud.

Its Housing Benefit service got the worse possible score from the Government in league tables of council performance published last year, though it got three out of four for its capacity toimprove.

In 2 001,Liverpool City Council was the subject of a damning British FraudInspectorate report which said some of those tasked with tackling abuse were themselves defrauding the council.

Since then Liverpool has taken a number of steps it insists will put this right. Its neighbour, meanwhile , is to get a visit from a BFI team which will look at administration and counter-fraudmeasures.

Housing Benefit Minister Malcolm Wicks said: ``I've specifically asked the BFI to target these poorest performing councils.

``Where councils perform badly some of the most vulnerable people in society suffer and face financial strain. ``This is unacce ptable and it is vital that performance improves so that benefit administration is effective and secur e.''

Mr Wicks said rooting out fraud frees up money to be spent tackling poverty.

He said: ``The BFI inspections are an important part of our Welfare to Work programme.''

Last night, Kno wsley said it was working to tackle the problem,calling in outside help and signing up for a Government anti-fraud initiative, in volving measures such as more visits to claimants homes.

The authority said it was aware of the importance of housing benefit and has achieved a 50pc improvement in the processing time for applications this year as well as bringing a number of people to court.

Councillor Norman Keats, Kno wsley's cabinet member for finance , said the ne ws of the inspection was ``very disappointing''.

He claimed the Government has ackno wledged improvements have been made with the council being told it was in a ``healthier position'.

Kno wsley itself has twice asked for the BFI to send precisely the teams it announced yesterday to help it tackle fraud,he added,but this was refused.

``We were refused the support and we're still waiting to hear how they might work with us - presumably this is their answ er?

``In the last eight months we have worked extremely hard to vastly improve this service and our employees are committed to the council's strategy of improving further prosecutions for fraud.''

The BFI was set up in 1997 and is part of the Department of Work and Pensions. It carries out inspections of agencies and local councils and is answ erable to theSecretary ofState.