16/06/2005
Report estimates over £42M paid out in DLA 'errors'
A report published today by the Northern Ireland Audit Office into Disability Living Allowance payments has estimated that over £42 million a year is paid out in error.
The Comptroller and Auditor General for Northern Ireland, John Dowdall, said in the report that despite improvements “DLA remains highly vulnerable to financial error”.
The report concluded that the amount of error is a “substantial sum” and greater than either the Agency’s estimate of customer (external) error of £41.7 million. Administrative errors are estimated to account for some £34 million, but due to way these sums are arrived at this figure only accounts for part of the “customer” error figure quoted in the report.
In 1999, the Social Security Agency implemented major policy changes to the decision-making and appeals process for social security benefits.
As a non-means-tested, non-contributory benefit, paid as a contribution towards the extra costs associated with disability, DLA entitlement is based on a person’s care and mobility needs. As such it is a particularly complex benefit to administer which in part stems from the complex legislative framework underlying the assessment of the individual’s calculated benefit level.
The report noted that take-up of DLA in Northern Ireland has traditionally been much higher than in Great Britain - research indicating that this is “closely linked to variations in health status”.
In 2003 to 2004 DLA was provided for about 160,000 individuals who received payments totalling £515 million.
Recently the Agency has substantially reduced the backlog of outstanding claims for DLA and has taken steps to improve the quality of decision-making.
Key findings in the report indicated that round 94% of decisions were error-free in 2003-04 compared with 91% the previous year, but that on average, during 2003-04, it took the Agency nearly five months to process a new claim – seven weeks outside its target.
The deployment of a new IT system at the beginning of the year was blamed for a “dip in performance”. However, by the end of the year, while still outside target, improvements in performance had occurred.
(SP)
The Comptroller and Auditor General for Northern Ireland, John Dowdall, said in the report that despite improvements “DLA remains highly vulnerable to financial error”.
The report concluded that the amount of error is a “substantial sum” and greater than either the Agency’s estimate of customer (external) error of £41.7 million. Administrative errors are estimated to account for some £34 million, but due to way these sums are arrived at this figure only accounts for part of the “customer” error figure quoted in the report.
In 1999, the Social Security Agency implemented major policy changes to the decision-making and appeals process for social security benefits.
As a non-means-tested, non-contributory benefit, paid as a contribution towards the extra costs associated with disability, DLA entitlement is based on a person’s care and mobility needs. As such it is a particularly complex benefit to administer which in part stems from the complex legislative framework underlying the assessment of the individual’s calculated benefit level.
The report noted that take-up of DLA in Northern Ireland has traditionally been much higher than in Great Britain - research indicating that this is “closely linked to variations in health status”.
In 2003 to 2004 DLA was provided for about 160,000 individuals who received payments totalling £515 million.
Recently the Agency has substantially reduced the backlog of outstanding claims for DLA and has taken steps to improve the quality of decision-making.
Key findings in the report indicated that round 94% of decisions were error-free in 2003-04 compared with 91% the previous year, but that on average, during 2003-04, it took the Agency nearly five months to process a new claim – seven weeks outside its target.
The deployment of a new IT system at the beginning of the year was blamed for a “dip in performance”. However, by the end of the year, while still outside target, improvements in performance had occurred.
(SP)
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Northern Ireland WeatherToday:A sunny but frosty start for many. However cloud increases by midday with a few showers reaching the north coast, these mostly light but spreading inland this afternoon. Chilly. Maximum temperature 8 °C.Tonight:A rather cloudy evening with scattered showers. Becoming drier through the night with some good clear spells developing and a patchy frost away from coasts. Minimum temperature 0 °C.