Ombudsman attacks DSS for disability payments 'chaos': Delays in benefit processing were 'tantamount to maladministration'

THE Department of Social Security was yesterday criticised by the parliamentary ombudsman, William Reid, for 'maladministration' in dealing with claims for benefits for disabled people.

In a damning report, Mr Reid said the department had not foreseen that there would be a surge in applications for the Disability Living Allowance when it was launched after much publicity in April last year.

The inquiry was prompted by complaints referred to him by MPs from people alleging maladministration. Concluding that the complaints were justified, he said: 'It appeared to claimants, welfare rights organisations and the MPs who referred complaints that chaos, and I do not use that word lightly, reigned for a time.'

Mr Reid's verdict reinforces criticisms made in a report by the Commons Social Security Select Committee last week, which said that for many claimants unacceptable delays in payments were a 'nightmare' and 'tantamount to maladministration'.

The ombudsman also claimed credit for securing improved compensation from the Government for people who suffered delays. Peter Lilley, Secretary of State for Social Security, has announced that compensation will be paid after a delay of six months instead of 12, for delays occurring through official error resulting in arrears of pounds 50 or more.

Mr Reid's report said: 'The benefits with which this report is concerned apply to some of the most vulnerable members of the community. Delay in payment or, worse, the stopping of benefit when an award comes up for renewal, can be devastating.'

Delays of up to a year occurred because of a combination of higher than expected workloads, inexperienced staff and an over-estimate of staff productivity. As a result, 'many disabled persons and their families have had to suffer inconvenience, annoyance, distress and, in some cases, prolonged hardship'.

Mr Reid said he sympathised enormously with staff at the Benefits Agency, who had to administer three different benefits as new ones were phased in. The growing arrears of undetermined claims had led to a vicious circle, with more claimants telephoning and writing about their claims and more staff diverted to dealing with the complaints and inquiries, leaving fewer to handle claims.

In a statement, Mr Lilley said: 'The Government fully accepts that claimants of Disability Living Allowance have not received the service that they deserve over the last year. Considerable resources have been devoted to remedying this, and these problems have now been largely overcome.'