On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the Benefit Fraud Inspectorate (BFI) inspection report on London Borough of Barking and Dagenham Council was published today and copies of the report have been placed in the Library.Following the housing Green Paper "Quality and Choice: A Decent Home for All", published in April 2000, the Department for Work and Pensions developed a performance framework for housing benefits. The performance standards for housing benefits allow local authorities to make a comprehensive self-assessment of whether they deliver benefit effectively and securely. They are the standards that the Department for Work and Pensions expect local authorities to aspire to and achieve in time.In 2002–03, London Borough of Barking and Dagenham Council administered some £65.4 million in housing benefits, about 16 per cent of its gross revenue expenditure.BFI inspected London Borough of Barking and Dagenham Council against the performance standards for housing benefits, and concludes that the council's benefits service had not reached standard in any of the seven functional areas—strategic management, customer services, processing of claims, working with landlords, internal security, counter-fraud and overpayments.The report finds that the council's benefits service, part of the revenues services, was embarking on a major programme of change that included improving its performance management, planning the replacement of its benefits IT system, planning the procurement of an electronic document management system, and reviewing its staffing structure.There was no structured approach to staff training and development of staff, and there were no documented procedures to support staff and ensure consistency of approach. Managers had limited access to performance reports and did not make routine use of those that were available. The IT systems were inadequate and required high levels of manual intervention, hindering rather than supporting the benefits service.The report finds that the average time taken to process new benefit claims was 43 days, compared to the performance standard of 36 days and 90 per cent. of new claims were processed within 14 days of receiving all information. However, there were delays in dealing with changes of circumstances and appeals and there was no management checking of work.The council's telephone service was poor with 54 per cent. of calls not being answered. Customers were often required to attend the offices on more than one occasion because they had not been asked to provide all the necessary information at the first point of contact. There were weaknesses in the management of documents with staff being unable to locate paperwork, resulting in further unnecessary contact with customers. The council's benefit claim forms and decision letters needed to improve to give clearer guidance and information to customers.The report also finds that all areas of the council's counter-fraud activity were weak. The council had no management information concerning fraud referrals, and very limited investigation activity had been carried out. New investigation staff had been appointed in 2003 but there were inadequate systems in place to allow them to progress investigations promptly.The council was unable to provide verifiable performance information relating to overpayments of benefit, and no single officer had overall control of overpayment recovery. Also the council did not use the full range of recovery methods available.The report makes recommendations to help the council address weaknesses and to further improve the administration of housing benefit and council tax benefit, as well as counter-fraud activities.My right hon. Friend the Secretary of State is now considering the report and will be asking the council for its proposals in response to the BFI's findings and recommendations.

Direct Payment is a modern, reliable, secure and efficient method of payment which is proving popular with those pensioners and benefit recipients who are using it. More customers now have their pensions and benefits paid into an account than by order book. We will be writing to the remainder before the end of the year inviting them to convert to direct payment.Eighty seven per cent. of DWP customers already have access to an account suitable for direct payment (the figure rises to 91 per cent. for pensioners). The wide availability of new, easy to operate accounts (including basic bank accounts and the Post Office card account) means that there should only be a very small number of people that cannot genuinely open an account— including, for example, some homeless people and some people with an illness or disability. There will also be some people who cannot manage an account—some will never be able to manage one (again due to illness or disability), while others may be in this position for only a short period (perhaps due to the absence of a regular carer or a short period of mental illness).

My Department today published the outcome of the Landfill Allowance Trading Scheme Consultation, which contains final details on the operation of the scheme. This is available on the DEFRA website www.Defra.gov.uk.The aim of the scheme is to enable England to meet the targets set by the landfill directive for reducing the amount of biodegradable municipal waste sent to landfill in the most cost effective way. It will be launched on 1 April 2005.

The supplement to the 2004 report of the Armed Forces' Pay Review Body making recommendations on the pay of service medical and dental officers has been published today. Copies of the supplement are available in the Vote Office and the Library of the House.The Review Body recommends an increase of 3.225 per cent. for all regular and reserve defence medical services medical and dental officers. The Review Body also recommends a pay increase of 3.225 per cent. for medical and dental cadets and an out-of-hours supplementary payment of £4,500 to junior doctors. In addition, the Review Body recommends that there should be an increase of 3.225 per cent. in the values of trainer pay and distinction awards.The cost of these recommendations to the defence budget will be some £6.3 million. This will be met within existing Departmental expenditure limits.The Review Body's final recommendations are to be accepted in full, with implementation effective from 1 April 2004.

The Government are extending the aggregates levy relief scheme in Northern Ireland. The relief, which will continue to cover aggregate in processed products, will be extended to cover virgin aggregate exploited in Northern Ireland. Instead of the relief reducing annually until it ended in April 2007, the level of relief will now be fixed at 80 per cent. of the full rate from 1 April 2004 and it will apply until 31 March 2011. The introduction of the new scheme follows notification from the European Commission on 7 May that the Government's proposals for extended relief have received state aid clearance.Quarry operators in Northern Ireland will be able to claim the extended relief straight away, providing they enter into agreements, that will commit them to making significant environmental improvements to the way their operations are run. Initially operators will need to satisfy the Department of the Environment in Northern Ireland (DoENI) that they hold or have applied for relevant regulatory authorisations, and enter into an agreement with DoENI, which will commit businesses to arrange a site audit, agree site-specific targets and comply with the code of practice for the aggregates industry in Northern Ireland. Continued eligibility for relief will depend on businesses meeting their agreed environmental targets, which will be regularly monitored and reviewed.