[holding answer 9 March 2009]: Section 17 of the Crime and Disorder Act 1998 places a duty on authorities, including local authorities, to consider the likely crime and disorder implications of the functions that they carry out.
Local housing allowance is normally paid direct into bank accounts so the instances of issuing local housing allowance cheques should be minimal. Not being able to open a suitable bank account was accepted under the safeguards as grounds for reverting to payment of local housing allowance to the landlord, particularly in the case of people living in housing in multiple occupation.
We do not collect any statistical information from local authorities specifically on instrument of payment fraud. However, the potential for fraud is expected to be very small given the drive for direct payment into bank accounts and the provisions of the safeguards which allow for reverting to payment of local housing allowance to the landlord in certain circumstances. We are closely monitoring how the scheme is working in practice and will undertake a review during the first two years of national operation.