Benefits system meltdown under Labour

12.00.00am UTC (GMT +0000) Wed 25th Oct 2006

Cllr Andrew Sangar

Sheffield City Council's benefits system is in meltdown. Liberal Democrats have revealed that thousands of people in Sheffield are being adversely affected by the failing service. Around 200 new claimants are not currently receiving benefits that should be. An estimated 600 to 800 people have had their benefits suspended when they could still be entitled to them. Furthermore, hundreds of individuals could be receiving the wrong amount of benefits as their situation changes have not been processed through no fault of their own.

The Labour controlled council contract the private company 'Liberata' to provide the benefits service. Lib Dems understand that the serious errors have arisen from Liberata not coping with the workload and failing to process forms accurately. It has been revealed that problems have been ongoing since July this year due to major failures on the part of Liberata.

The news comes just three months after the same service sent out 758 letters to pensioners demanding repayment of overpayments under £5. At the time council bosses promised an investigation into the matter to ensure no similar incidents happened again.

Lib Dems understand that many overpayments are to be written off, although distressing letters demanding repayment have already been issued to benefit claimants. Lib Dems have also learned that an independent review into the benefits system has been order by the Council's Chief Executive Sir Robert Kerslake.

Councillor Andrew Sangar, Liberal Democrat Shadow Cabinet member for Finance and Performance, said: -

"It's clear that the councils benefits system has been in meltdown for the past few months. It is now absolutely vital that the service is sorted out as quickly as possible so that individuals and families have their benefits calculated accurately and they receive benefits on time"

"I'm furious that yet again we have a situation where the council's benefits system has failed some of the poorest in the city"

"It shows utter incompetence on Labour's part that it has been allowed to happen again. The question many of those affected will be asking is just who at the council is going to take responsibility?"

"It is the Labour council who are responsible for this mess. Once again they have let the people of Sheffield down on this issue despite promises it wouldn't happen again"