Information relating to payments of EPA in relation to childcare

Summary

The request sought total EPA payments for nursery care, fraud statistics, and validation steps for the 2017-18 financial year. The Treasury refused to provide total payment figures due to the substantial compilation required but confirmed no fraudulent claims were identified and detailed the signature-based validation process.

Key Facts

• Total payments for nursery care could not be provided as the database does not separate component parts of applicable amounts.
• Retrieving payment data would require a physical examination of over 1,000 case files.
• The Treasury is not aware of any fraudulent claims for nursery care allowances in the 2017-18 financial year.
• Validation of claims requires the child care provider or nursery manager to sign the claim form.
• No allowance is made if the relevant claim form is not signed by the provider.

Data Disclosed

• 2017-18 financial year
• over 1,000 case files
• 12 weeks
• 2018-10-16
• 2018-10-26
• 630065

Exemptions Cited

• Section 8(3) of the Freedom of Information Act 2015 (substantial compilation or collation)
• Section 11(3)(b) of the Freedom of Information Act 2015 (practical refusal reason)

Original Request

I would like to request the following information in respect of claims made for EPA payments, specifically for nursery care, during the last financial year: 1. The total payments made during the year 2. The number of fraudulent claims identified 3. The steps taken to check the validity of claims on an ongoing basis The providers of nursery care on the island have very significant concerns regarding how the current system is operated and we believe there is a significant cost to government for EPA which is not being used for the purpose it is paid. We would like to put together a proposal for improving the system that will be beneficial to claimants, nursery providers, and the government.".

Data Tables (1)

Full Response Text

Freedom of Information Seyrsnys Fysseree

The Treasury Government Office, Douglas Isle of Man, IM1 3PU

Telephone: (01624) 685605 Email: FOI.Treasury@gov.im

Government Website: www.gov.im

Our ref: 630065 26 October 2018

Dear ###,

We write further to your request which was received on 16 October 2018 and which states:

"I would like to request the following information in respect of claims made for EPA payments, specifically for nursery care, during the last financial year: 1. The total payments made during the year 2. The number of fraudulent claims identified 3. The steps taken to check the validity of claims on an ongoing basis The providers of nursery care on the island have very significant concerns regarding how the current system is operated and we believe there is a significant cost to government for EPA which is not being used for the purpose it is paid. We would like to put together a proposal for improving the system that will be beneficial to claimants, nursery providers, and the government."

Response In regard to part 1 of your request, I can advise that in this instance, complying with your request for information would require Treasury to undertake substantial compilation or collation of the information that it holds. Under Section 8(3) of the Freedom of Information Act 2015 we are not required to - (a) create or derive information from the information we hold; (b) undertake research into, or analysis of, the information we hold; or (c) undertake substantial compilation or collation of the information we hold.

In this instance, as a result, a practical refusal reason applies under Section 11(3)(b) of the Act. Allowances towards child care costs (which include nursery fees) are a component part of a claimant’s “applicable amount” for Employed Person’s Allowance (EPA). Details of claims for allowances towards child care charges made in the 2017-18 financial year are set out on individual Employed Person’s Allowance (EPA) claim forms - which are stored in claimants’ physical case files. Details of awards of EPA made in the 2017-18 financial year are similarly recorded in claimants’ physical case files. The amounts of payments of EPA are recorded on our database, i.e. the “Benefit Payments System” (or “BPS” for short). However, as BPS does not hold information about the component parts which make up claimants’ applicable amounts, it is not possible to readily identify payments made towards, or in respect of, nursery fees; this would only be achievable through a physical examination of over 1,000 case files. In regard to part 2 of your request, I can confirm that the Treasury is not aware of any fraudulent claims for allowances towards nursery care fees in relation to EPA having been made in the 2017-18 financial year. In regard to part 3 of your request, I can advise that in respect of every claim for EPA – whether it be a new claim or a re-claim - there is a section on the claim form which requires the claimant to provide details of the child care charges they are paying, if they wish to claim allowances in respect of those charges. If they are paying child care charges, they have to state on the claim form how much their child care charges are, who they pay those charges to and which child(ren) the charges are in respect of. The claimant is also required to state whether they are responsible for paying the full amount of the child care charges and if the charges are going to stop within the following 12 weeks. In each case the child care provider or nursery manager has to sign the claim form to confirm the details provided by the claimant are correct. We would not make any allowance towards child care charges when calculating entitlement to EPA if the child care provider or nursery manager had not signed the relevant EPA claim form. This has been the position for the last several years, including throughout the 2017-18 financial year, and is ongoing.

Please quote the reference number 630065 in any future communications. In reference to your proposal for improving the current system, we invite you to write to the Treasury setting out your specific concerns with the current system and any proposals for improving it. Any correspondence regarding this should be addressed to; David Ireland Director of National Insurance and Social Security Markwell House Market Street Douglas IM1 2RZ.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.

If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi. I will now close your request as of this date.

Yours sincerely