Single Fraud Investigation Service (SFIS) Update

SFIS - the formation of a single fraud investigation service, covering the totality of welfare benefit fraud was announced in the Autumn Statement by the Chancellor of the Exchequer on Thursday 5 December 2013.

Tackling fraud, error and debt in the tax and benefits systems

This government is taking wide-ranging action to reduce fraud, error and debt in the tax and benefits systems. The government will invest an extra £140 million to ensure that everyone pays what they should and to reduce the amount of debt owed to government.

To deliver savings of over £2.3 billion through reductions in fraud, error and debt, Autumn Statement 2013 announces that the government will… implement a Single Fraud Investigation Service to investigate fraud across the whole of the welfare system…

These measures will increase the government’s ability to identify and tackle fraud, error and debt in the benefits and tax credit system.

This announcement confirms that SFIS will be launched within DWP as a single organisation and implementation will commence in 2014.

SFIS will operate to a single set of policies and procedures and will provide a nationally flexible service to tackle all welfare benefit fraud.

Prosecutions arising from SFIS investigations will be conducted by the Crown Prosecution Service in England and Wales and the Procurator Fiscal in Scotland.
 

DWP recognises there are circumstances where fraud occurs across both local authority services and welfare benefits and it remains important to work jointly with LA fraud colleagues. Following discussion with our partners in local government, it has been agreed that a joint working group will be set up.

This group will:

• Establish a current understanding of ways in which we work and data share

• Identify any new legislative requirements to be considered
• Ensure data agreements are in place where possible and that the Cabinet Office Bill regarding data sharing is influenced /supported
• Create a national framework of protocol agreements to facilitate joint working and support mechanisms for non –welfare benefit fraud investigation
• Consider any future developments and joint working

In addition we will be setting up an SFIS Implementation Board which will comprise key stakeholder and partners to ensure involvement at each stage as the project moves towards implementation.

Implementation plans including the rollout schedule are being developed and our current plans are that we will implement SFIS on a phased basis from October 2014 – March 2016 and are currently considering a small number of test sites before that point. We will share updates with you as we move forward.

In preparation for the many initiatives which the Fraud Error and Debt programme is introducing DWP is re-shaping its current services. One of these changes brings together all the fraud, error and compliance services for DWP into a new DWP Fraud and Error Service (FES).  When SFIS is introduced it will sit as an element within FES.

In advance of the introduction of SFIS, DWP has considered the likelihood of TUPE applying and also looked at the Cabinet Office Statement of Practice.  There is at this stage insufficient information to say conclusively whether TUPE will or will not apply. We recognise that further analysis of the TUPE Regulations will delay proceedings and bring uncertainty to all those affected. DWP has therefore taken the strategic business decision that in order to maintain an effective fraud investigation service, it is keen for the staff assigned to work transfer with it. We will therefore commence discussions with local authorities to agree this proposition and determine who is potentially in scope. This decision applies solely to Local Authority fraud investigative staff and we will be undertaking additional work to consider the impact on other areas such as NAFN and are working closely with CPS in respect of the Local Authority legal staff. 

Extensive engagement with our stakeholders and partners will continue over the coming months and regular updates will be posted on the Knowledge Hub together with frequently asked questions. However we would remind you that specific questions should be sent to the following address rather than posted on the Hub.

SINGLEFRAUDINVESTIGATIONSERVICE-.QUERIES@DWP.GSI.GOV.UK

To access the Knowledge Hub you will need to register if you are not already a member and then search under “Groups” and request to join the SFIS Communications Hub Group.

 https://knowledgehub.local.gov.uk/home.