Missing Payments Guide Abbreviations About this Guide Purpose of this guide Who should read this guide General Considerations Layout of this guide Part 1 – Missing Direct Payment Customer reports non-receipt of direct payment Customer confirmation of non-receipt Bank/building society accounts Post Office® card account Direct payments credited to the wrong account Urgent replacement Urgent payment not appropriate Customer reports unable to access direct payment Part 2 – Cheque(s) Reporting the loss Checking the issue of the cheque(s) in cases of non-receipt System issued cheque(s) sent by recorded delivery Clerically issued cheque(s) sent by recorded delivery Unusually high losses Centrally issued cheque(s) Recording missing cheque(s) System issued cheque(s) Clerically issued IS cheque(s) All cheque(s) F7 register Completing the QB52 Immediate replacement Immediate replacement not made Issue of FF74 Tracing/recovery of missing cheque(s) Original Cheque(s) not traced Cheque(s) replaced Cheque(s) not replaced Original Cheque(s) found by customer – replacement issuedAll cheque(s) System issued cheque(s) Clerically issued cheque(s) Original cheque(s) found by customer – replacement not issued All cheque(s) System issued cheque(s) SFCS system issued cheque(s) LPS and Handwritten cheque(s) Original cheque(s) cashed Use of plastic wallet

Case returned from CFIS Case investigated – no evidencCase investigated – culprit estaCase investigated – culprit not eCase not investigated Case returned from decision mOverpayment recoverable Overpayment not recoverable Closure Use of QB57 Write-off action Completion of write-off scheduleCertification of Summary Sheet Bulk loss of cheque(s) Restriction to a nominated POApplying the restriction Part 3 – Reimbursement Reimbursement Reimbursement by Alliance aBank plc DWP agreement When to claim reimbursementHow to claim reimbursement Alliance and Leicester CommerAlliance and Leicester Commerthe claim Part 4 – Milk Tokens (MTs) MTs lost by retailer Part 5 – Missing payable ordeCustomer reports that a payaFF91B is missing, lost, stolenAction Cancellation of payable ordersConsidering replacement paymeReplacing payable orders Customer reports that an IICSorder is missing, lost, stolen oAction Contacting TPP AP Control Completing QB52-PO by intervicustomer Considering replacement paymeRecording any replacement payCustomer reports that a CA syorder is missing, lost, stolen oAction The Benefit Code Number on thP t 6 Mi i h d l

Recoverable/non-recoverable overpayments Cheque(s) issued by the Jobcentre Plus Reporting the loss Contacting the PO Replacement is the EO decision where the replacement is for the exact amount Refusal of an immediate replacement An immediate replacement Making a replacement at a later date System maintained claims Form FF74 Request for Alliance and Leicester Commercial Bank plc to search for a cheque(s) reported missing Search does not trace missing cheque(s) Jobseeker reports finding ‘missing’ cheque(s) Replacement not already made Replacement not yet made – for missing clerically issued cheque(s) Alliance and Leicester Commercial Bank plc advise that the original cheque(s) has been cashed All missing cheque(s) cashed and replaced Missing cheque(s) cashed and not replaced immediately

Part 6 – Missing schedule paymFinance action STB action Appendices “Best Practices” in IOP replacemRecord of irregular encashment2 List of updated forms & retentioMissing Payment Letters - AppDeskaid – Non-receipt of Direct

Abbreviations AA Attendance Allowance BAU Business as Usual BCN Benefit Code Number BPC Benefit Payment Code BHS Benefit History Sheet BLS Bank Liaison Section BO Benefit Office BPO Benefit Processing Officer BSB Benefit Support Branch CA Carer’s Allowance CAFEK Carer’s Allowance Front End Keying CB Contributory Benefit CFIS Counter Fraud Investigation Service CHB Child Benefit COBAP Corporate Banking and Methods of Payment Group CP Case Paper CSA Child Support Agency DCN Departmental Code Number DLA Disability Living Allowance DM Decision Maker DO District Office DWP Department for Work and Pensions FSM Fraud Sector Manager GA Guardians Allowance GB General Benefit GBU General Benefit Unit IICS Industrial Injuries Computer System

IISB Industrial Injuries Schemes Benefits INCAP Incapacity Benefit IOP Instrument of Payment IS Income Support ISCS Income Support Computer System JSA Jobseekers Allowance JSAPS Jobseekers Allowance Payment System LO Local Office LMU Labour Market Unit LPS Local Payment System MT Milk Token NINo National Insurance Number OPB One Parent Benefit OPP Older Persons Pension OR Overall Requirements ORG Overpayment Recovery Guide PGO Paymaster Generals Office PO Post Office® POca Post Office card account POEX Post Office® External Helpline POFD Post Office® Finance Department POL Post Office® Ltd. PSCS Pensions Strategy Computing System RDC Regional Data Centre (formerly Service Delivery Centre) RMC Request Management Centre SDA Severe Disablement Allowance SF Social Fund SFCS Social Fund Computer System SFO Social Fund Officer SHD Service Help Desk SoS Secretary of State SP State Pension WAR Work Available Report WB Widows Benefit WP Widows Pension About this guide Purpose of this Guide The purpose of this guide is to promote a common approach to procedures about missing Benefits and Pensions payments. This guide is not relevant to any administrative payments. Who should read this guide? This guide is for the attention of operational and payments processing staff in Department for Work and Pensions (DWP). General Considerations

It is possible to substantially reduce (Departmental / Payment) losses by:

• placing stop notices (clerically or by system) on missing payments as soon as possible

• prompt clearance of WARs & BLS6. Enquire into circumstances of the loss:

I. is the customer’s explanation of the loss both reasonable and consistent?

II. are answers given to all relevant questions on the QB52?

III. if you are suspicious, ask Counter Fraud Investigation Service (CFIS) for advice (see para 41).

Replace unless there are good grounds for refusal. Regulation 20 of the Claims and Payments Regulations 1987 states that “ . . benefits shall be paid in accordance with an award as soon as it is reasonably practicable after the award has been made, by means of an instrument of payment or by such other means . . “. The effect of this is that:

I. the burden of proof is on the DWP to prove that the customer has

cashed their IOP or received payment into the customer’s nominated account;

II. the Secretary of State’s duty is discharged only on encashment of the

Instrument of Payment (IOP) or when payment is received into the account nominated by the customer, not when it is posted or handed to the customer; and

III. the customer does not have to prove that they did not cash the IOP;

the DWP has to show that they did. This does not mean that IOPs have to be replaced without thorough enquiry, searching and questioning in cases of doubt. It does mean that immediate replacement is necessary if the customer states non-receipt/encashment and there is no evidence of payment. Direct payment cannot go missing if the customer has provided correct account details and these have been recorded accurately on the relevant system. LO staff need to fully investigate this.

Customers can challenge refusal to replace in the small claims courts. It can only be defended if there is good evidence the customer has “received value” for the IOP. An example of this would be a statement from a Post Office® (PO) official who can identify the customer as the presenter of the IOP. Suspicion (e.g. a history of losses) is not the same as evidence and cannot be used to justify refusal to replace an IOP. Similarity of signatures only carries weight as

evidence when confirmed by a handwriting expert. It is of limited value without corroborative evidence. Do not delay replacement to allow time to investigate the report, for example to trace a cheque(s) or paid order. Prevent further losses. When a cheque payment has gone missing point out to customers the advantages of direct payments (Conduct an Informed Choice discussion with the customer either at interview or over the phone. If the customer cannot be contacted then send a letter along with the DP Gen to the customer). If the customer cannot be paid by direct payment consider restriction to one PO or issuing the customer with a counter payment. Replacement of a missing payment can be made via Direct Payment, Heritage Benefit System (HBS), LPS, handwritten cheque(s) or cash depending on the customer’s circumstance. Whichever option is chosen you will need to access the appropriate payment system and document of authority for making the replacement payment. This guide does not specify the dialogues/screens (unless it has been in the guide historically) you will need to access/update, in order to make a replacement payment. It is therefore recommended that staff should take existing BAU action. ‘Best Practice’ in replacement policy – a list of ideas and initiatives from the field that have proved successful, within the constraints laid down by law, in reducing the number of IOP replacements is given at Appendix 1. Bank/building societies have the right to refuse to discuss payments with the DWP due to Data Protection Act. If they take this action and the customer is unable to provide authorisation for DWP to talk to them then the missing payment query should be referred to Bank Liaison Section (BLS). Layout of the guide This guide is in six parts plus appendices: Part 1 – Missing Direct Payment Part 2 – Cheque(s) Part 3– Reimbursement by Alliance and Leicester Commercial Bank PLC and POL This explains how to seek compensation for negligently cashed cheque(s). Part 4 – Milk Tokens (MTs) This includes MTs reported not received, lost, stolen, damaged or destroyed. Part 5 – Payable Orders

This includes POs reported not received, lost, stolen, damaged or destroyed. Part 6 – Missing Schedule payments This includes returned schedule payments, Finance action, and STB action. Appendices PART 1 - Missing Direct Payment Customer reports non-receipt of direct payment 1 The customer may report the non-receipt of, or inability to access a direct payment. The contact may be made in writing (including letter, fax or e-mail), by telephone or in person. 2 Reasons why the customer may report that they have not received their direct payment are: I Customer error The customer may be unaware, for whatever reason, that the payment has been credited to their bank/building society account. II Payment not due This can happen when the customer mistakenly thinks a payment is due, or has received incorrect details about the payment due date, or where customer entitlement is being reassessed. III Payment returned or recalled If the bank/building society is unable to credit the payment to a valid bank/building society account it may be returned to the DWP and BLS will mark it back on the appropriate benefit system. Checking the status on the system should confirm whether the payment has been returned or recalled, but if not a telephone call to BLS will be able to check any outstanding returned payments that have not been marked back at the time of the missing payment enquiry. IV Payment not credited to correct bank/building society account The payment may have been credited to another bank/building society account. The account may, or may not belong to the customer. This can occur due to invalid/incorrect account details, input either by the DWP or provided by customer. If the bank/building society has diverted the payment to a different account belonging to the same customer then customer needs to take this up with their bank/building society . It is important to check that any change to account details provided by the customer has been actioned and that this took place before the next payment was issued V Invalid account details If incorrect account details have been used, the payment may not be credited to the customer’s account on time. The bank/building society may reject the payment or it may be held in a suspense account, while they try to locate the correct customers

account. (If the customer has made an error and provided incorrect bank details, inform the customer that they need to resolve this with their bank) 3 When a customer says they have not received a direct payment, check the following:

• check that the payment has been issued as per desk aid 1

• check if the customer was due payment, if not inform the customer; • If the payment is marked as recalled or returned; • If the bank/building society account details are incorrect, staff should check whether the correct account details have been used by checking details on system against what the customer has supplied OR by confirming with the customer that they have supplied the correct account details; • If the bank/building society account details have recently changed, check that the new details have been actioned, and that this took place before the next payment was issued or payments were reported as missing. If not then it is likely to be in the old account or will be returned by their bank/building society if the account is closed. If it is due to DWP error make a replacement payment.

4 Customer confirmation of non-receipt If the customer has not contacted their bank/building society that day, the payment may be in their account but the customer’s information may be out of date. For example, if the customer has checked their balance at a cash machine, the information available to the customer may not be up to date. The cash machine will not provide a detailed statement of the account, such as charges/payments made from the account that the customer is not aware of which may have affected the balance. 5 Bank/building society accounts (Direct payments cannot go missing if the customer has provided correct account details and these have been recorded accurately on the relevant benefit system). Ask the customer to contact their bank/building society to confirm whether payment has been credited to their account checking with the branch and not the cash machine. If the bank/building society account confirms payment not received in account Ask the customer to:

• provide written confirmation from their bank/building society that payment has not been received whether by supplying an up to date original bank/building society account statement or by completion of form QB42. • provide permission to telephone their bank/building society and confirm non-receipt whilst the customer is available to authorise their

bank/building society to talk to DWP. (This will only be possible for counter staff who have the customer present).

6 You must ensure all necessary system checks have been carried out before contacting the customer’s bank/building society. Staff should use the Bank Wizard to check the validity of bank/building society account details prior to contacting the bank/building society. Contacting the bank/building society can be done by processing staff or BLS depending on individual business working practices. Click here Bank/building society account Wizard Ensure all customer and payment details are available before making the call to bank/building society.

• name of customer / account holder’s name

• sort code

• account number

• Building Society Roll Number (if appropriate)

• customer's correct sort code and account number (if different),

• amount of payment.

• date due to be credited. (Bank/building societies has the right to refuse to discuss payments with the DWP due to the Data Protection Act. If they take this action and the customer is unable to provide authorisation for DWP to talk to them then the missing payment query should be referred to BLS) 7 Post Office® card account For Post Office® card accounts, the customer must ring the Post Office® customer service help line first (see para 21) to report the non-receipt. If the customer has not previously contacted the help line, they must be provided with the number and advised to ring before further action is taken. The customer will need to get the name of the person they have spoken to and also request a POEX (Post Office® External Help line) help line reference number, from the PO help line. This will confirm that the customer has contacted the Post Office® banking team. BLS does not require the reference number. Note: QB42 action is not appropriate in card account cases. (The full QB42 process is not applicable in card account cases as the Post Office branch staff cannot access details of the customers account, therefore cannot confirm that the payment has been received. However, parts 1 & 2 of the QB42 may be used to obtain the written declaration from the customer. Part 3 of the QB42 is not applicable). 8 If at this stage no resolution has been found then you can refer to BLS to carry out further checks (please note that as this creates a lot of additional work for BLS you should make sure you have carried out all the necessary checks before hand).

9 BLS may carry out a number of checks on: • the business system, to confirm that a payment has been generated: outstanding returned payment notifications; or

• contact the bank/building society;

• request a BACS trace. 10 Direct payment credited to the wrong account. If the bank/building society has confirmed that the payment has been credited to an account that does not belong to the customer, try to identify the person/area responsible for the error.

• Bank/building society error – if the error was due to the bank/building society, ask the customer to contact their bank/building society

• Customer error – if the customer supplied incorrect bank/building society account details, inform the customer to contact their bank/building society to request that the payment is redirected to the correct account. Note benefit staff should not contact the bank/building society, the onus is on the customer to do this. Operational areas should not issue a duplicate payment to the customer because payment has been made in accordance with the instruction provided by the customer. If however the bank/building society returns the payment to the DWP, benefit staff should re-issue the payment to the customer (making sure the account details are accurate). (This is not applicable for card account customers as they are unable to contact Citibank direct, the issue must be raised via Bank Liaison)

• Departmental error – if the payment was made to the wrong account as a result of Departmental error then action should be taken to replace/recover payment. Staff must obtain the correct account details.

11 Urgent replacement - Decision on whether to replace should be:

• If the reason for non-receipt was due to Departmental error and the customer cannot wait for the payment to be returned by the bank/building society or if it has been credited to the wrong account, then payment should be re-issued but staff must ensure that the account details are corrected prior to re-issue.

• If not Departmental error, then policy contained in ‘Paying Benefits and Pensions Direct into Accounts (The Direct Payment Guide) states the following: The Secretary of State has discharged his responsibility once a payment reaches the account specified by the customer. Therefore, in cases of:

Customers providing incorrect account details; or Customers failing to advise the operational area of new details;

Operational areas should not issue duplicate payments to customers. This is because payments will have been made in accordance with the instructions provided by the customer, current at the time the payment was made.

12 Operational areas must input the correct account details to ensure no further payments are sent to the incorrect account.

13 In case of customer error, the onus is on the customer, not benefit staff, to contact the bank/building society to request that the payment is re-directed to the correct account.

14 If, however, the bank/building society returns the payment to the DWP, benefit staff should re-issue it to the customer if appropriate. For POca customers, staff will need to contact BLS. If the customer does not have access to benefit or any other funds, they may need to make a claim for a crisis loan.

15 It is important to note that crisis loans are only considered as a “last resort” to alleviate financial difficulties in emergency situations and certain eligibility criteria must be satisfied.

16 If the payment is to be replaced, the customer is required to complete the

replacement request form QB42. The QB42 contains the declaration which the customer has to sign before they re-issue a payment.

17 If a payment is not urgent then issue the replacement payment by direct payment checking first that the bank/building society account details are correct. 18 However, if a system-generated payment cannot be made (i.e. where the original payment is not marked back as returned), the business area can arrange for a replacement payment to be issued via LPS, either as a one-off direct payment, or a one off handwritten cheque. (A handwritten cheque should only be issued where a payment cannot be made via LPS). Complete form QB59 to make the replacement payment. 19 Where an urgent payment is appropriate decide whether the payment can be made by cheque(s).

• Where payment is to be made by urgent cheque(s), the payment can be sent to the customer by first class post or be collected over the counter.

20 Urgent payment not appropriate - Advise the customer that an urgent payment is not appropriate and issue the replacement payment by direct payment, ensuring that the correct account details are used. Where appropriate take overpayment action on the original payment. Customer reports unable to access direct payment 21 The customer may report that they are unable to access their payment, which

has been issued to their nominated bank/building society account. This could be due to:

I. ) Lost / Stolen / Damaged card for bank/building society account -

current (standard) bank/building society account - basic bank/building society account – (inform the customer to report this immediately to their bank/building society, the customer will need to liaise with their bank/building society to get a replacement card/access to the money).

II. Lost / Stolen / Damaged card for Post Office® card account – a customer who reports a lost, stolen or damaged card

will need to contact the Post Office®. Inform the customer to contact the Post Office® and provide the 24 Hour Emergency Help line (free phone) number for a lost or stolen card, or the Customer Service Help line (local rate) number for a damaged card. A Text phone number is also available. When the account holder reports their POca Card lost or stolen through the freephone call centre they will be offered the option of an instant replacement for their POca Card if they require funds quickly.

Lost / Stolen card help line: 0800 3892101 Customer Services help line: 08457 223344 Text phone: 08457 223355

damaged card –the customer Service Help line is available:

08.15 – 18.00 Monday to Friday 08.30 – 19.15 Saturday

depending on how the card is damaged, Post Office®

staff may be able to manually type in the card account details to allow the customer to enter their PIN and withdraw money.

III. Forgotten PIN for bank/building society account – customer should be advised to contact their bank/building society for a replacement PIN

IV. Forgotten PIN for Post Office® card account –

inform the customer to contact the Post Office®, and provide the Customer Help line number. The customer will need to apply for a replacement PIN. This process can take up to 4 days,

the Post Office® cannot provide access to the account, until the customer has received their new PIN,

if the customer claims financial hardship, the only route available for the customer is to make an application for a Social Fund Crisis Loan. In this situation normal Social Fund rules apply.

V. Require Third Party Access to Bank/Building society account–

a customer who reports that they are unable to access their bank/building society account due to for example, unexpected ill health or injury, will need to contact their bank/building society,

facilities exist within the bank/building society accounting environment to enable customers to access their cash via third party transactions although arrangements may differ between bank/building society accounts. However, some bank/building society accounts do not allow third party transactions. The customer will need to liaise with the bank/building society to establish the range of facilities on offer to them,

Credit Union To access Credit Union information Pack Paying Benefits and Pensions into Credit Union Accounts Click here http://intralink/corp/csd/fsdweb/cobap/union.pdf To prevent missing payments and rejections: Use BANK WIZARD to help you verify the accuracy of account details prior to inputting them on the benefit system. BANK WIZARD will validate account details for all UK bank accounts and the Post Office . Links to Bank Wizard Use ‘A Direct Payment Input Guide’ to help you input the account details accurately and identify whether to input as a bank/building society account or a building society with an alpha code and roll number. It will also help you to input the roll number in the correct format, thus preventing late/missing payments. DPIG - Direct Payment Input Guide (BANK WIZARD is a registered trademark owned by Eiger Systems Limited) PART 2 Cheque(s)

Reporting the Loss Checking the issue of the cheque(s) in cases of non-receipt 22 If a customer reports that they have not received a cheque(s), complete form

QB51 and take the following action: Step Action

I. using the relevant dialogues and clerical papers determine whether the cheque(s) has been sent to the customer. If it has not been sent and no reason can be found for this, issue the cheque(s) to the customer

II. tell the customer if you are withholding payment for any reason. Ask the customer for any details, which may allow you to pay them.

III. ensure the cheque(s) was sent to the customer’s correct address; (and there has been enough time to deliver it i.e. 3 working days for postal and 4 working days for bank/building society account holiday) (Consider conducting an Informed Choice discussion to encourage the customer to provide direct payment details) ask customer to complete QB52/QB52W “Notification of missing cheque”

IV. if the cheque(s) was sent to a customer in hospital, and is reported as missing, check (by contacting the patient admin team at the hospital) if it was lost in transit or handed to someone with a similar name.

V. if the customer states that they: ● did not receive a counter cheque(s); or ● returned a cheque(s) to the office; or ● handed it to a member of staff. Check the appropriate system (including LPS) to see if a payment has been issued and also check with Finance Staff to see if there is a record of the returned cheque(s). If there is no trace, pass the case to the HEO for further investigation.

23 The HEO will investigate the allegation, and if there is no satisfactory explanation, they:

Step Action

I. take action as per the Finance Management Guide, and S it I id t G id

Step Action Security Incidents Guide

II. keep a record of: ● when ● how; and ● to whom ● Local Office Serial Number the customer claims the cheque(s) was returned.

System issued cheque(s) sent by recorded delivery 24 Take the following action: Step Action

I. ask the finance section for details (on report RCPP02602), then,

II. ask the sorting office (Royal Mail) if it has been delivered. Clerically issued cheque(s) sent by recorded delivery 25 Take the following action: Step Action

I. ask the finance section for the recorded delivery number; and

II. ask the sorting office (Royal Mail) if it has been delivered. Unusually high losses 26 Advise the HEO and the Fraud Sector Manager (FSM) immediately if there is:

● an unusually high number of cheque(s) reported as not received in any one week; or ● some significant pattern, e.g. losses involving a common PO or geographical area.

27 For further action, see para 144 and145. Centrally issued cheque(s) 28 Take the following action if a central office issues a cheque(s) and a customer

reports it missing: Step Action

I. send a minute to the issuing office giving the customer’s: ● name

Step Action ● NINo ● reference number e.g. Child Benefit number (CHB)

and, ● the address that the cheque(s) should have been sent to. ● the amount shown on the payment

II. ask the customer to complete QB52 (QB52W) Notification of missing cheque.

III. complete QB51 and fax QB51/QB52 to the relevant office, forward original in post.

IV. refer the customer to the Social Fund Officer (SFO) to consider a crisis loan if the customer claims hardship.

Recording missing cheque(s) System issued cheque(s) 29 If a customer reports the loss of a system issued cheque(s), and you are satisfied

as to the customer’s identity, then access the appropriate dialogue immediately to:

identify the missing cheque(s) on the system; and input details of the loss, it is important to put the correct

loss criteria in this field. 30 When you enter the details of the loss on the system, the RDC:

sends a stop notice to the PO; and the feeder benefit system sets case controls for further

action. Note: The majority of PSCS (INCAP) cheque(s) are paid at a nominated PO, but the system does not issue a stop notice when you record the lost cheque(s) details on PSCS (INCAP) or IICS. A clerical QB60 will need to be sent to the PO. It is now standard in Jobcentre Plus cases to use a nominated Post Office with system cheques.. State Pensions cheques do not have a post office code printed on them unless they are restricted to a nominated Post Office.. 31 Log reports of non-receipt of all system-issued ISCS cheque(s) with the Service

Help Desk (SHD). If it is recognised that the missing payment is the result of a system fault, the First Line Local Support (FLLS) will assist in this.

Clerically issued IS cheque(s) 32 If the customer reports the loss of a clerically issued cheque(s) (i.e. not recorded

on the system), take the following action immediately:

Step Action

I. draw a circle round the cheque(s) number on the payment record or rating sheet;

II. note in red ink, on the A6M, A6M (SF) ● the cheque(s) number ● the date of issue; and ● the date the loss was reported;

III. Complete the QB51 (missing cheque action sheet) IV. send a stop notice (QB60) (if there is no system stop) to the

nominated PO; and V. stamp the right hand pocket pouch of the A12, SF wallet or

Box 15 of the General Benefit Unit (GBU): “Lost cheque(s)– see A6M/A6M (SF)/BHS box 3”

LPS issued cheques 33 If a customer reports the loss of LPS issued cheque(s), and you are satisfied as

to the customer’s identity, then access LPS immediately to: identify the missing cheque(s) on LPS; and amend payment status to lost, missing etc send a stop

notice (QB60) to the nominated PO. Complete the QB51

All cheque(s) 34 If the loss is recent, and the cheque(s) has been cashed, and you obtain a

description of the presenter and details of any identification used, contact CFIS for advice.

35 Use form QB60 if there is no system stop, or if there will be a delay to the system

stop. 36 Pass QB51 to the holder of the F7 register. F7 register 37 The F7 register is a comprehensive record of cheque(s) reported as missing.

This record must be maintained in order that any trend or pattern of losses can be more readily identified.

Completing the QB52 38 Complete a QB52 by interview, or as a last resort send it to the customer if they

are unable to attend. Set a case control for two weeks for its return. (Conduct an Informed Choice discussion with the customer when a cheque payment has gone missing i.e. at interview or over the phone. If the customer cannot be contacted then send a letter along with the DP Gen to the customer).

39 If there is no reply after two weeks, contact the customer to confirm that the

cheque(s) is still missing and ask them to return the QB52. If there is no reply take action as follows:

Step Action

I. system cheque(s): use the appropriate dialogue to cancel the IOP record [except in PSCS(INCAP) cases]; or

II. clerically issued cheque(s) : note the clerical records in red ink “QB52 not returned”;

III. clear the F7 entry; and

IV. pass the QB51 to the supervisor for closure. Immediate replacement 40 If there are reasons to suspect the reported loss is not genuine: Step Action

I. question the customer; and

II. consider asking CFIS for advice 41 Reasons for suspicion include: (See 'About this Guide).

• a history of missing IOPs,

• delay in reporting the loss,

• unconvincing or inconsistent answers on the QB52. 42 Consider asking the customer to wait until the Alliance and Leicester Commercial

Bank plc complete the search if there have been payments after the missing one, (cheque(s) searches take several weeks).

43 If the customer requests an immediate replacement, suspicion alone is

insufficient to justify refusal. There should be evidence that the customer’s account is untrue.

44 Use the appropriate dialogues to:

Step Action

I. request a system cheque(s)

II. record details of the replacement cheque(s); and

III. the missing IOP Officer/ or lost IOP Nominated Officer set a user case control for two weeks (from the issue date of the cheque(s)) to send FF74

45 For a clerically issued cheque(s), authorise the issue of a replacement

(Complete the QB59 Payment authority). Step Action

I. enter “Replacement cheque(s)” on the payment panel or rating sheet;

II. mark the payment notification “Replacement cheque(s) issued on …..(date)”;

III. enter in red “Replacement of cheque(s) issued date lost cheque(s)) issued authorised” in the A6M, A6M(SF) or GBU; and

IV. the missing IOP Officer/ or lost IOP Nominated Officer sets case control for sending an FF74.

46 For LPS cheques take the following action. Step Action

I. check that the QB59 has been completed II. update the appropriate fields on the LPS

III. the reason for payment field should be “replacement”,

IV. Issue the Payment. 47 Consider payment by counter cheque(s) if the customer requests this. Immediate replacement not made 48 If immediate replacement is not made Step Action

I. do not record the decision on the system at this stage;

II. in Part B of the QB51, record why the conditions for issuing an i di t l t h ( ) t ti fi d

immediate replacement cheque(s) are not satisfied.

III. give/send a QB53 to the customer to tell them the decision;

IV. file the QB52 with the QB51; and

V. BF the QB51 or set a user case control for two weeks from the issue date of the cheque(s)

49 If a replacement is refused and the customer claims hardship, refer the case to

the SFO to consider a crisis loan. The customer should be told that referral does not guarantee a loan. The decision lies with the Social Fund Officer. The SFO considers a loan only to avoid serious risk to health or safety of the customer or family. A loan does not replace the missing cheque(s).

Issue of FF74 50 Form FF74 starts a search for the missing cheque(s). Complete the FF74 please

do not staple the FF74 or attach paper clips) two weeks after the cheque(s) was issued, or immediately, if the loss is reported more than two weeks after the date of issue.

51 When the two-week case control/BF is due 52 53 Check that the cheque(s) has not been returned. If it is still missing, complete

the FF74 (please do not staple the FF74 or attach paper clips) and send it via the holder of the F7 register to:

DWP Enquiry Services Alliance & Leicester Commercial Bank plc, 1st Floor OPS, Bootle, Merseyside, GIR 0AA

54 BF the QB51 or set a user case control for five weeks for the result of the search.

If the cheque(s) has not been replaced, do not record a decision on the system at this stage. Make a final decision after the search.

55 Alliance and Leicester Commercial Bank plc issue an acknowledgement within

ten working days if the cheque(s) is not immediately available, but they will continue to search for up to 12 months. Do not issue a duplicate FF74 (this incurs more cost to the department)

56 If there has been no acknowledgement received after 3 weeks, a letter must be

sent to the Alliance and Leicester Commercial Bank plc Bootle, Merseyside (see para 53) and set a case control/BF for a further 2 weeks.

Tracing/recovery of missing cheque(s) Original cheque(s) not traced Cheque(s) replaced 57 If the FF74 search does not trace the missing cheque(s)) and the customer has

received a replacement: Step Action

I. note the QB51; and

II. pass it to the supervisor for closure. Cheque(s) not replaced 58 If the FF74 search does not trace the missing cheque(s) and the customer has

not received a replacement: Step Action

I. send QB54 to the customer; and

II. BF the case or set a user case control for two weeks from the date the QB54 was sent.

59 If the customer returns the QB54 and they have not found the original cheque(s): Step Action

I. issue a replacement; and

II. pass the QB51 to the supervisor for closure. 60 If the customer does not return the QB54, pass the QB51 to the supervisor for

closure. Original cheque(s) found by customer – replacement issued 61 Recall the original cheque(s) if:

• the customer finds the cheque(s) they had reported missing; and

• a replacement cheque(s) has been issued. All cheque(s) 62 If the customer finds the cheque(s) before you issue the FF74, inform the holder

of the F7 register. 63 If the FF74 has been sent, but not acknowledged by the DWP Enquiry Service at

Alliance and Leicester Commercial Bank/ plc, note the QB51. This ensures that

cancellation is not overlooked when the DWP Reconciliation do acknowledge the FF74.

64 If the FF74 has been acknowledged: Step Action

I. ● note the acknowledgement in red ink “Please cancel” and sign it.

● send it via the holder of the F7 register to: DWP Enquiry Service

Alliance & Leicester Commercial Bank plc 1st Floor Ops Bootle, Merseyside, GIR 0AA

II. note the QB51 System issued cheque(s) 65 When the customer returns the original cheque(s) (replacement previously made)

the System Update Officer records it in the appropriate dialogue. Note: There is no case control created with PSCS(INCAP). 66 When this has been done: Step Action

I. cancel any user case controls set previously; and

II. note the QB51 and pass it to the supervisor for closure.

Clerically issued cheque(s) 67 Note the papers, (update the relevant dialogues) and pass the QB51 to the

supervisor for closure. Original cheque(s) found by customer – replacement not issued 68 Take the following action if a customer reports that:

• they have found the missing cheque(s); and

• a replacement cheque(s) has not been issued. All cheque(s) Take action as in paras 60-62, System issued cheque(s)

69 If no entry has been made in ISCS 430 dialogue use the ISCS 440 dialogue to cancel the missing IOP record and pass the QB51 to the supervisor for closure. Enter information in notepad to that effect.

70 If you have not replaced the cheque(s), the system deletes:

previously entered details; and any evidence to the payment having been reported

missing. Note: Once a payment has been recorded as LOST on PSCS(INCAP) the status cannot be changed back to ISSUED. 71 If you want to keep a record of the report, you must do so clerically. SFCS system issued cheque(s) 72 It is not possible to cancel the missing IOP record on SFCS. If a customer

reports that they have found the missing cheque(s): Step Action

I. tell them to return the cheque(s); and

II. issue a replacement on return of cheque(s) LPS and handwritten cheque(s) 73 Tell the customer to cash the handwritten cheque(s) if: Step Action

I. it is still valid; and

II. you have not sent a stop notice to the nominated PO; and

III. payment is still appropriate. 74 Record the action on the payment panel or rating sheet. If the cheque is an LPS

issued cheque and the customer reports they have found it, they will need to return the cheque to the office and have a replacement issued. This is because the status on the LPS cannot be changed back to issued from missing.

75 Take the following action if the cheque(s) is no longer valid, you have issued a stop notice or payment is not appropriate

Step Action

I. ask the customer to return the cheque(s) immediately.

II. replace the cheque(s) when the customer returns the original.

III. note its issue on the payment panel or rating sheet.

IV. pass the QB51 to the supervisor for closure. Original cheque(s) cashed 76 The PO passes all cashed cheque(s) to Alliance and Leicester Commercial Bank

plc for clearance action. When they receive the FF74 they will initiate a trace of the missing cheque(s) and if it is found they will send it to the IOP Nominated Officer at the relevant office.

77 The Missing IOP Officer/ Nominated Officer will place the cheque(s) in a plastic

wallet and: Step Action

I. check that the PO have followed the correct procedures; and

II. check and completes the F7 register 78 Complete all relevant paperwork then contact the relevant processing team or

fraud team. Use of plastic wallet 79 Place a cheque(s), which appears to have been cashed fraudulently in a plastic

wallet (MF71) at the earliest possible stage. This makes finger printing easier for the police.

80 When you receive the cashed cheque(s) : Step Action

I. record the search result in the appropriate dialogue and

II. pass the cheque(s), with QB51, QB52 and QB21, to CFIS. Follow this procedure whether a replacement has been issued or not. Recoverable/non-recoverable overpayments 81 If the cashed cheque(s) has been replaced or is to be replaced refer to the

Overpayments Recovery Guide . For Social Fund cheque(s) where the CFIS investigation is able to prove that the payee cashed the cheque(s) it should be classified as a recoverable overpayment. Details of the overpayment and subsequent recoveries should be recorded on form SFOP2/A (introduced via Finance Directorate Circular 38/98).

82 If CFIS are unable to prove that the payee cashed any cheque(s) regardless of who issued it then it must be recorded as non-recoverable on the write-off schedule at appendix 2.

Cheque(s) issued by Jobcentre plus Reporting the loss 83 If the customer reports the loss of a JSA cheque(s) that was produced by JSAPS,

take the following action: Step Action

I. ask the customer to provide evidence of identity,

II. access dialogue JA500 to confirm the personal details match those held on JSAPS.

84 If satisfied that the customer is the person reporting the loss, then Step Action

I. access JA502 to check if ● the payment has been issued, and ● enough time has elapsed for the cheque(s) to arrive,

II. ask customer to complete “”Notification of missing cheque” QB52 (QB52W).

Contacting the PO 85 Contact the PO Step Action

I. confirm if the cheque(s) has been cashed. 86 If the cheque(s) has been cashed and is still held at the PO. Step Action

I. arrange for A/c 10/FF300 holder or liaise with CFIS for the cheque(s) to be ● put in a plastic wallet immediately to preserve any

fingerprints, ● collected by an official.

87 If the cheque(s) has been cashed, but is no longer held at PO Step Action

I. arrange for cashier to send FF74 and any reminders to Alliance and Leicester Commercial Bank plc;

II. complete the loss report (QB51);

III. access JSAPS 430 to record the missing cheque(s) (an automatic QB60 is sent to the PO if payment is for £449.99 or less, i.e. uncrossed cheque(s);

IV. pass the QB51 & QB52 (QB52W) to the EO. Replacement is the EO decision where the replacement is for the exact amount 88 When the jobseeker reports a cheque(s) missing, the decision whether to replace

or refuse to replace the cheque(s) is made by considering: the circumstances of the loss; the jobseeker’s account of the loss with regard to

reasonableness and consistency; the answers in the QB52 (QB52W), completed in full; and by asking CFIS for advice if suspicious.

89 Make a replacement unless there are good grounds for refusing to replace. (See 'About this Guide' ). Do not take hardship into account when making a decision to replace. The EO will take the following action:

Step Action

I. ● makes a decision on replacement action, ● consider an immediate replacement, ● consider replacement action for missing cheque(s) not

traced by the FF74,

II. the Missing IOP Officer/Nominated Officer ● issues an FF74 and any reminders.

Refusal of an immediate replacement 90 If the cheque(s) is not going to be replaced immediately, then Step Action

Step Action I. the EO –Update QB51;

II. the Missing IOP Officer/Nominated Officer; ● issues a QB53 (QB53W) to the customer as a receipt for report;

III. inform the customer that a replacement will not be considered until the cheque(s): ● is returned by the Alliance and Leicester Commercial

Bank plc; ● can be regarded as uncashed, i.e. 7 weeks from the

date the report was made;

IV. ensure that all the relevant paperwork i.e. QB51 & QB52 is given to the person who carries out the FF74 action.

91 If the customer then claims hardship you must: Step Action

I. Refer the customer to the SFO (Social Fund Officer) to consider a crisis loan.

92 The customer should be informed about the possibility of a Social Fund crisis

loan in extreme situations. However also state that this does not guarantee a Social Fund Loan. The decision lies with the SFO (Social Fund Officer) who judges each case on its merits. A crisis loan is made only if there is a serious risk to the health and safety of the customer or their family. The loan is not made to replace the missing cheque(s).

An immediate replacement 93 The EO authorises a replacement by Step Action

I. completing form QB51; Updates DIA 485 with replacement details, (consider making payment via LPS)

II. ● authorises QB59 ● passes all Paperwork to the Missing IOP

Officer/Nominated Officer. The Missing IOP Officer/Nominated Officer

Step Action

I. ensures that JSA 54 is completed and the ‘tear-off’ part is passed to the customer.

II. retain the top part of the QB54 (QB54W) with the QB51 & JSA 52;

III. pass all documents to Finance for payment. 94 The Finance Section/Cashier Step Action

I. Issue the replacement cheque(s); and

II. Update QB51 and dialogue JA450;

III. Return LMU; (Labour Market Unit)

IV. Takes follow-up action to trace the original cheque(s) by sending FF74 to Alliance and Leicester Commercial Bank plc.

Making a replacement at a later date System maintained claims 95 If the decision to replace the cheque(s) is made after 5 working days from

dialogue DIA 430 being completed, dialogue DIA 485 cannot be accessed therefore the following action must be carried out:

● The EO will need to complete a JSA14P annotated in RED ‘replacement for cheque(s) number xxxxxxx’

Form FF74 request for Alliance and Leicester Commercial Bank plc to search for a cheque(s) reported missing 96 All cheque(s) are sent to Alliance and Leicester Commercial Bank/ plc after

encashment. 97 If the jobseeker reports a cheque(s) missing, Finance Section sends the FF74 to: DWP Enquiry Service Alliance and Leicester Commercial Bank plc 1ST Floor OPS Bootle Merseyside, GIR 0AA.

• when the case control appears on the work available report (WAR) two weeks after the missing cheque(s) was issued, and the cheque(s) is still missing, or

• immediately, if the cheque(s) was issued two weeks or more before being recorded as missing in dialogue JA430

98 The above action is taken in order to find out: • if the cheque(s) has been cashed, and

• to get a cashed cheque(s) back from Alliance and Leicester Commercial Bank plc.

99 If the cheque(s) is not available immediately, Alliance and Leicester Commercial Bank plc issue an acknowledgement after 10 working days and continue their search for up to 12 months that the request is held on the system. If no acknowledgement is received after three weeks contact Alliance and Leicester Commercial Bank plc at the above address by letter.

Step Action

I. Finance Section record acknowledgement in JA430,

II. if the cheque(s) is not received by time 5-week case control appears on WAR treat the cheque(s) as not traced.

Search does not trace missing cheque(s) 100 If the missing cheque(s) has not been traced seven weeks after it was issued: Step Action

I. check it was replaced;

II. if replaced, refer to EO for closure. 101 If the cheque(s) was not replaced and replacement is appropriate : Step Action

I. check if the jobseeker’s claim is live or dormant. 102 If the jobseeker’s claim is live: Step Action

I. complete QB54 (QB54W) and insert it in claim file;

II. give the jobseeker form immediately on next attendance;

III. return ‘tear-off’ section to the jobseeker;

IV. complete QB59 & 14P;

V. refer forms JSA14P, QB51, QB52, QB54 & QB59 to EO to authorise replacement on QB59 & JSA14P and take to

Finance for payment. 103 If the jobseeker’s claim is dormant: Step Action

I. send QB54 (QB54W) to the jobseeker;

II. set case control in JA530 for two weeks for return of QB54 (QB54W);

III. on return of QB54 (QB54W) follow step 3-5 in 96 above;

IV. if QB54 (QB54W) not returned by time case control appears on WAR refer QB51 to EO for closure action.

Jobseeker reports finding ‘missing’ cheque(s) 104 If the FF74 has not yet been issued to Alliance and Leicester Commercial

Bank plc: Step Action

I. inform the holder of returned or lost cheque(s) register, and

II. ask the jobseeker to return the cheque(s), unless?

III. para 98 applies. 105 If FF74 has already been issued to Alliance and Leicester Commercial Bank

plc: Step Action

I. inform holder of returned or lost cheque(s) register, and

II. note that the jobseeker has found the missing cheque(s) on QB51.

106 If FF74 has already been issued to Alliance and Leicester Commercial Bank

plc and acknowledgement received Step Action

I. note acknowledgement in red ‘please cancel’ and sign it;

II. return acknowledgement via holder of the returned or lost cheque(s) register to DWP Enquiry Service;

III. note that the jobseeker has found missing cheque(s) on QB51.

107 If a replacement has already been made Step Action

I. ask the jobseeker to return missing cheque(s) if they have not already done so;

II. give the jobseeker an official receipt;

III. the System Update Officer records in JA440 or, if clerical cheque(s), notes the case papers that the jobseeker has found the cheque(s);

IV. pass QB51 to EO for closure. Replacement not already made 108 If the jobseeker reports finding the ‘missing’ JSAPS cheque(s), and

• the cheque(s) is still valid, i.e. less than one month has passed since the date of issue; and

• a stop notice was not issued to the nominated PO; and

• payment is still due, then;

Step Action

I. tell the jobseeker to keep and cash cheque(s);

II. cancel missing payment record in JA430;

III. cancel any user set case controls relating to cheque(s);

IV. note QB51 the jobseeker has found and cashed the missing cheque(s);

V. pass QB51 to EO for closure. 109 If cheque(s) is not still valid or a stop notice was issued or payment no longer

due, then Step Action

I. tell the jobseeker not to cash cheque(s) but return it to office;

II. issue an official receipt on its return;

III. refer to appropriate System Update Officer who records in JA440 missing cheque(s) returned and deletes all system evidence that the cheque(s) was reported missing.

110 The Benefit Processing Section then Step Action

I. cancels any user set case controls;

Step Action II. note QB51 that the jobseeker found and returned the missing

cheque(s);

III. passes QB51 to Benefit processing manager for closure and authorisation of replacement if appropriate on QB59 & 14P in JA485;

IV. benefit processing returns QB51 to processing Officer to issue payment in JA405.

Replacement not yet made - for missing clerically issued cheque(s) 111 If the jobseeker reports they have found the ‘missing’ clerical cheque(s) then

the same criteria applies as for JSAPS cheque(s), as to whether or not the jobseeker can keep and cash the cheque(s) (see para 107).

Step Action

I. tell the jobseeker to keep and cash the cheque(s);

II. note QB51 that the jobseeker has found and cashed cheque(s);

III. pass QB51 to EO for closure. 112 If the cheque(s) cannot be cashed Step Action

I. tell the jobseeker not to cash the cheque(s) but return it to the office;

II. give an official receipt to whoever returns it;

III. benefit processing returns QB51 to processing Officer to issue payment in JA405.

IV. pass QB51 to EO for closure;

V. EO to authorise replacement on QB59 & JSA14P if a payment is still appropriate;

VI. note JSA14P that replacement has been issued. Alliance and Leicester Commercial Bank plc advise that the original cheque(s) has been cashed 113 When you receive the cashed cheque(s) from Alliance and Leicester

Commercial Bank plc whether a replacement has been issued or not you must:: Step Action

I. record the search result for a JSAPS cheque(s) which: ● was not replaced by putting ‘y’ in positive result field of

JA430 ● was replaced, note QB51 and the jobseeker’s claim

Step Action file (record search result for a clerical cheque(s) by noting QB51 and the jobseeker’s claim file cheque(s)

II. complete referral to fraud form QB21;

III. pass the cheque(s) with QB51, QB52 & QB21 and, if cheque(s) was replaced, QB54 (QB54W) to CFIS.

For all missing cheque(s) cashed and replaced 114 The administering office takes the following action if the missing cheque(s)

has been cashed and the customer has received a replacement. 109 The Nominated Officer puts the original cheque(s) into a plastic wallet (MF71) and checks that the PO has followed the correct procedures for cashing cheque(s). NB: If they appear to have not done so, then inform the EO who can consider applying to Alliance and Leicester Commercial Bank/ plc for reimbursement (see Part 3). 115 The Nominated Officer passes the cashed cheque(s) to the holder of the

returned or lost cheque(s) register to complete the details in the register, and 116 For all JSA cheque(s) pass the cashed cheque(s), QB51, QB52 (QB52W),

QB54 (QB54W) and QB21 to CFIS. 117 CFIS will take any further action necessary. Missing cheque(s) cashed and not replaced immediately 118 If the administering office refuse an immediate replacement of a JSA

cheque(s), which is then traced by FF74 procedure, it will be forwarded along with associated papers to CFIS who should investigate.

119 CFIS will complete their investigation and then return the evidence to the

Originating Office for a decision on whether to replace the payment. Case returned from CFIS (Counter Fraud Investigation Service) Case investigated – no evidence of fraud 120 If the missing cheque(s) was not replaced when the loss was reported,

authorise a replacement if the loss has been investigated and found to be genuine.

Case investigated – culprit established 121 If the investigation by CFIS is successful and the payee or third person admits

cashing the cheque(s), take the following action.

122 If the payee or third party makes an acceptable offer to repay, CFIS take the

following action: Step Action

I. note the QB51 (BPO notes QB51 for JSA cheque(s); and II. continue with recover action as per the Overpayment

Recovery Guide (ORG) Part 2. 123 If the payee or third party does not make an acceptable offer to repay, CFIS

will: Step Action

I. refer the case for overpayment adjudication; and

II. note details of the outcome of any prosecution on the QB51 (BPO notes QB51 for JSA cheque(s).

Case investigated – culprit not established 124 If the investigation by CFIS is unsuccessful, pass the case to the supervisor

for further action. If possible one person should maintain the write-off schedule. 125 If the cheque(s) is replaced: Step Action

I. note the write-off schedule by: ● recording the customer’s name and NINO, and ● the total amount of un-recovered benefit

II. consider applying for reimbursement (see Part 3 of this guide); and

III. refer the QB51 to the supervisor for closure. Case not investigated 126 CFIS may return cases referred to them without making any investigation.

Further action will depend on whether the original cheque(s) was replaced at the time of loss.

127 If the original cheque(s) has not been replaced, send form QB55 to the

customer. Replace the cheque(s) if the customer: • replies to the QB55;

• examines the original cheque(s) and

• denies cashing the original

128 If the original cheque(s) has been replaced, send form QB56 to the customer. Complete the write off schedule if:

• the customer does not refund voluntarily; and

• there is no evidence of overpayment to put before the Decision Maker

Case returned from Decision Maker Overpayment recoverable 129 If the Decision Maker decides that the overpayment is recoverable, take the

following action as per ORG Part 2. Overpayment not recoverable 130 If the Decision Maker decides that the overpayment is non-recoverable, pass

the case to the supervisor. They will consider applying to Alliance and Leicester Commercial Bank plc for reimbursement. If reimbursement is not appropriate:

Step Action

I. note the write off schedule by recording: ● the customers name and NINo, and ● the total amount of unrecovered benefit, and

II. refer the QB51 to the supervisor for closure. Closure 131 To close all QB51 action: Step Action

I. note the details on the payment record in red ink;

II. keep the cheque(s) in the fraud file or a separate run;

III. do not destroy for at least 12 months after the date of issue;

IV. notify the IS section of the action taken on a QB57, and

V. pass the QB51 to the supervisor. 132 The supervisor checks that all appropriate action has been taken and initials

the final entry on the QB51. Use of QB57 133 Form QB57 is used to pass information about cheque(s) losses between local

office benefit sections and between IS sections and Jobcentre Plus. Write-off action 134 The Department take write-off action if the loss cannot be recovered and

Alliance and Leicester Commercial Bank plc do not accept a claim for

reimbursement. Where the Department cannot pursue recovery against a payment cashed by an unknown third party these are classified as an Irregular Encashment as there is no debtor to assign the debt to.

Completion of write-off schedule and Summary Sheet 135 The write-off schedule should be completed by decision makers, at the time a

decision to write-off a payment is taken. This will include decision makers in Jobcentre plus and Pensions Service districts as well as Finance and Counter Fraud staff.

136 The section supervisor holds the write-off schedule(s) and summary sheet.

These are reproduced in Appendix 2. 137 To complete the write-off schedule, record: Step Action

I. the customer’s name and NINo in column 1, and

II. The value of the write-off against the relevant benefit type(s), (columns 2-11) having taken account of Notes 1 and 2 on the schedule;

III. if recording a Social Fund entry (column 6), then column 7 must also be completed to indicate the type of Social Fund Payment. (The schedule provides types to select at the foot of the page).

138 To complete the Summary Sheet, record Step Action

I. the total volume and value of records contained in the write-off schedule(s), against the appropriate benefit type.

NB: remember to consider whether or not the value exceeds £1200.00 Certification of Summary Sheet and write-off schedule(s) 139 A HEO or above must sign and date all write-off schedules each financial

quarter. 140 The action certifies that the schedule represents a true record of all Irregular

Encashments during the quarter. It ensures that only one return is sent each quarter to: Irregular Encashment Team Room 506, Norcross, by each District Office.

141 The total value of all write-offs across the district must be provided at the end

of every financial quarter. These are compiled by a central contact within the district to include all CFIS and District figures. Please contact the Irregular Encashment Team on 01253 333751 for details of contacts by Region.

142 Returns to be sent no later than two weeks after the end of each quarter.

Quarter 1 = April to June Quarter 2 = July to September Quarter 3 = October to December Quarter 4 = January to March 143 The Irregular Encashment team is based at Norcross, Blackpool and are

responsible for collating the value of ‘written-off’ items on a national basis using returns generated as above. An annual audit by National Audit Office (NAO) is then conducted. Finally the data is included as a note to the Resource Account. This note provides an explanation as to the reason for the loss of money (to the Department as a whole), which is then laid before Treasury.

Bulk loss of cheque(s) 144 The District FSM (Fraud Sector Manager) may ask for a report if

• there is a high number of cheque(s) reported missing in any week; or

• there is reason to suspect bulk theft, either as a single event or as a systematic loss over a period of time

145 Take the following action: Step Action

I. complete a report in triplicate giving details of the cheque(s) not received for each of the last eight weeks;

II. complete an FF74s for each cheque(s) unless already issued;

III. the holder of the F7 register completes column 10. The FSM sends two copies of the report and the FF74s to the National Intelligence Service.

IV. if the National Intelligence Service confirm that bulk theft is suspected: ● complete four copies of supplementary lists giving

details of any other cheque(s) reported as not received; ● complete FF74 noting “Bulk Loss” for each cheque(s)

listed; ● the F7 holder noted “Bulk Theft action” in column 14 of

the F7 register against each cheque(s) entry in both the original and supplementary lists;

● the FSM sends three copies of the supplementary lists

with the related FF74s to National Intelligence Service.

Step Action They decide when these lists are no longer required.

Restriction to a nominated PO of payment Applying the restriction 146 141 The HEO, or a delegated EO, (an IOP specialist) authorises the

restriction of PO if there are multiple reports of missing cheque(s): • at a particular address, or

• by a particular customer i. multi-occupancy accommodation with a history of lost, stolen or

destroyed cheque(s). The restriction applies to all customers at that address.

ii. claims from specific areas, e.g. streets where there are high cheque(s) losses.

147 This action is to help prevent fraud but only applies to cheque(s) issued

manually. System issued cheque(s) have the nominated PO already printed on them).

148 Take the following action if the HEO has authorised a restriction: Step Action

I. check that the correct, full address of the PO is shown on the claim form;

II. note, in red, in block capitals “ENCASHMENT ONLY AT NOMINATED PO” on section 9(2) of the A6M and the manila pocket inside the CP jacket; or on forms BF40C, BF40A or B12;

III. stamp the Notes box of the CP “Not to be destroyed until . . . (date)” and enter a date three years from the start of the restriction;

IV. for each clerical payment, enter “PO” in red directly below the BENEFIT CODE on the payment panel.

PART 3 Reimbursement 149 The DWP has an agreement with the Alliance and Leicester Commercial

Bank plc for cheque(s). Reimbursement by Alliance and Leicester Commercial Bank plc DWP agreement

150 The DWP has an agreement with Alliance and Leicester Commercial Bank plc which covers certain cheque(s) losses. Under the agreement, Alliance and Leicester Commercial Bank/ plc reimburse the value of irregularly cashed cheque(s) in specific cases.

When to claim reimbursement 151 Claim reimbursement-using QB58 and consider approaching CFIS if PO fraud

is suspected after all missing cheque(s) action is complete if: • the missing cheque(s) has been replaced

• the original cheque(s) is returned cashed

• it is not possible to recover the money, (e.g. there is no offer to repay, no fraud prosecution, etc) and

• at least one of the circumstances in the following list contributed to the irregular encashment of the original cheque(s).

152 List of circumstances where claim for reimbursement may be made: • the cheque(s) has obviously been altered

• the amount in words is different to the amount in figures

• the cheque(s) was cashed for an amount higher than its limit

• the cheque(s) was cashed at a different PO to the one nominated

• the cheque(s) was not signed or marked in ink

• the payee’s mark was not witnessed

• the signature differs significantly from the payee’s name (do not make a claim if the signature only varies slightly, e.g. the use of an initial instead of a forename or the omission of a second initial)

• an agent was used but Part A of the cheque(s) was incomplete or incorrectly completed

• the cheque(s) was crossed

• the PO received a stop payment notice at least one day before the cashed cheque(s) (i.e. stop notice was issued at least two days before encashment)

• the cheque(s) was cashed more than one month after its issue

• the cheque(s) was stolen as a result of the Alliance and Leicester Commercial Bank/ plc and Post Office® negligence and irregularly cashed.

How to claim reimbursement 153 To claim reimbursement from the Alliance and Leicester Commercial Bank plc Step Action

I. complete a QB58, and

II. send it and the cheque(s) via Courier or internal carrier to: DWP COBAP Room 502 Norcross

154 Note the further action notes box of the CP or BHS and any file which has

been set up, “QB58 sent . . . . . [date]” Alliance and Leicester Commercial Bank plc accept the claim 155 If they accept the claim

• Alliance and Leicester Commercial Bank plc return a copy of QB58 with the acceptance box ticked to inform the local office that generated the claim

• Alliance and Leicester Commercial Bank plc keep a copy of the QB58 and any attached papers.

Alliance and Leicester Commercial Bank plc do not accept the claim 156 Alliance and Leicester Commercial Bank plc will return the QB58, the

cheque(s) and any attached forms if they do not accept the claim. When you receive the QB58:

Step Action

I. link the documents with the QB51;

II. note the write-off schedule by recording: ● the customer’s name and NINo; and ● the total amount of un-recovered benefit; and

III. take closure action. PART 4 Milk Tokens -–(This now only applies to clerical cases) 157 If the customer reports that MTs have been lost, stolen, not received,

mutilated or destroyed take the following action: Step Action

I. interview the customer and complete a statement. The EO authorises the replacement on the W10 if the loss appears genuine. The replacement MTs are for the current week;

II. replace MTs in full if the customer has not received them;

III. replace lost, stolen, damaged or destroyed MTs from either th t k th t k if th t h d

the current week or the next week if the customer cashed them in the current week.

158 (Refer to the bulletin joint IS/JSA bulletin 30/4 and Divisional Accounting email 71/04-151/04-25/05)

MTs lost by retailer 159 If a retailer reports loss, theft or destruction of MTs, refer them to the: Welfare Foods Reimbursement Unit PO Box 31040 London SW1V 2FB Tel: 0207 887 1212 Fraud PART 5 Missing Payable Orders Customer reports that a payable order generated via an FF91B is missing, lost, stolen or destroyed Action 160 Take the following action: Step Action

I. use the payment history screen in the payments enquiry dialogue on the system. Check if a payment has been issued;

II. in cases of non-receipt of payable orders contact TPP AP Control, Tel 01253 33 3840/2767. Quote the FF91B serial number and confirm that the payable order has been sent. (Note: same information required as para 192 step 1).

161 TPP AP Control check if the payable order has been sent and: Step Action

I. if it has not been sent, inform you when it will be sent; or

II. if the payable order has been sent, to inform you if it has been cashed. (Only if requested to check the status of the PO)

162 If the payable order has been sent but has not been cashed: Step Action

ask the TPP AP Control to cancel the payable order; and

II. record the information on an A6 and fax it to TPP AP Control on 01253 33 8514

Cancellation of payable orders 163 When TPP AP Control receive a request to cancel a payable order, they: Step Action

I. contact the PGO to cancel the payable order; and

II. send an MPF622 to the LO to confirm that the PGO has cancelled the payable order.

164 Do not replace any part of the cancelled payment until you have received the

MPF22. 165 Complete form QB52-PO. Ask the customer to take all reasonable steps to

recover the payable order (e.g. thorough search of the house, report to the police). If appropriate conduct an Informed Choice discussion.

Considering replacement payment 166 EO authorises an immediate replacement if all the following conditions are

satisfied: • the customer asks for an immediate replacement at the interview

• a QB52-PO has been completed

• in cases of non receipt:

• there has been sufficient time to deliver the payable order; or

• TPP AP Control confirm that the payable order has not been cashed and has been cancelled; and

• there is no evidence that the customer has cashed the payable order, or received value for it.

167 The EO will authorise a replacement payment if the conditions are satisfied.

For a SF payment, record the decision in the appropriate dialogue. 168 Do not make an immediate payment if the conditions in para 167 are not

satisfied. Take the following action: Step Action

I. record on an A6 which conditions are not satisfied and why;

II. attach the A6 to the QB52-PO and keep a copy in the file. 169 TPP AP Control will tell you if the payable order has been cancelled. Replacing payable orders 170 If the EO/SFO decides to replace the payment, take action as follows:

Step Action

I. complete an FF91B and pass it to the person performing Finance Stockholding duties to record and authenticate it, and send it to TPP AP Control;

II. in exceptional circumstances, issue cheque(s) locally, splitting the payment over two or more cheque(s);

III. record the details on an A6, as well as in dialogue 110 (notepad) for IS cases;

IV. pass an IS case to the System Update Officer to record as an exceptional clerical payment in the appropriate dialogue;

V. use the appropriate dialogue to record the details of any SF replacement.

Customer reports that an IICS system-generated payable order is missing, lost, stolen or destroyed Action 171 Take the following action Check on the IISB computer systems that the payable order has been issued: Step Action

I. take action in accordance with Part 1 paras 24-28 and paras 56-57.

172 Contact the IICS IT Team on 01253 33 3075 Step Action

I. ask the IT Team to confirm that the payable order has been issued, i.e. it was not rejected during batch processing, and

II. confirm the seven-digit serial number of the payable order, the date of issue and the value of the payable order.

173 Record the payment status change in the award/ maintenance dialogue on the respective computer system

Step Action

I. record the payment status change for the payable order. (The payment status code for a missing payable order should be 3 in all cases).

174 If the payable order was rejected during batch processing: Step Action

I. request a replacement system generated payable order for the relevant period whilst accessing the relevant computer system;

Step Action

II. inform the customer that a replacement payment will be issued;

III. no further system action is necessary;

IV. make appropriate annotations on clerical payment records for all missing system payable orders.

175 Including the loss on the F7 register: Step Action

ensure that the loss of the payable order is recorded on the F7 register, and

inform the holder of the F7 register of the outcome of subsequent action on the loss.

Contacting TPP AP Control 176 Contact TPP AP Control on telephone number 01253 33 3840/2767. You

must: Step Action

I. quote the Paymaster General’s account number for the IICS system generated payable orders which is 66008 for all IISB payable orders, and

II. quote the serial number of the payable order, the date it was issued and its value;

III. ask the TPP AP Control to confirm whether the payable order has been cashed or not. They will respond to the request by telephone.

177 If the payable order has not been cashed: Step Action

I. ask TPP AP Control to cancel it;

II. complete and fax annex 4 of Part 2 to the IIDB Procedures General Topics Guide to TPP AP Control on 01253 33 8514. TPP AP Control will cancel the payable order only on receipt of the fax;

III. TPP AP Control will confirm that the payable order has been cancelled by issuing form MPF622.

178 If the payable order has been cashed you must: Step Action

I. ask TPP AP Control to requisition it from the PGO and return it to you;

II. retain the requisitioned payable order for 18 months. 179 TPP AP Control cannot un-cancel a payable order. If a customer reports that

they have found the missing payable order after you have requested that it be cancelled you must:

Step Action

I. ask the customer to return it as soon as possible;

II. inform the customer that a replacement payable order will be issued if one has not already been issued.

Completing QB52-PO by interview or by sending one to the customer 180 For each missing, lost, stolen or destroyed payable order a QB52-PO must be

completed by interview, or sent to the customer for completion if they are unable to attend an interview. A copy of QB52-PO was attached to Disablement Benefit bulletin 15/99.

181 If a QB52-PO is sent to the customer: Step Action

I. BF the case for 2 weeks for the return of the QB52-PO;

II. contact the customer if the form is not returned, completed, in that period;

III. ask the customer to confirm whether the payable order is still missing;

IV. ask the customer to return QB52-PO as soon as possible. 182 If there is no reply to contact at para 262 step 2 above, then Step Action

I. note box 11 of the BI2 by the record of the payable order. “QB52-PO not returned”;

II. clear the F7 entry;

III. pass the QB51 to the supervisor for closure. No further action is necessary.

183 If the payable order has been cashed, once it has been received from TPP AP

Control, refer the completed QB52-PO with relevant papers to CFIS on form QB21.

Considering replacement payment 184 A replacement payment can only be considered when all the following

conditions are satisfied: • a QB52-PO has been completed;

• an MPF622 has been received from TPP AP Control confirming the payable order has not been cashed and has been cancelled;

• if the papers were sent to CFIS, they have completed their action. 185 A replacement payment will not be appropriate if CFIS action indicates that

the customer has cashed the payable order. If a replacement payment is not to be made, you must:

Step Action

I. record on an A6 the reason replacement has not been made;

II. attach the A6 to the QB52-PO;

III. inform the customer that a replacement will not be issued. Recording any replacement payment on the IICS 186 A replacement payment will be appropriate in all cases other than those

detailed at para 184 above. You must record in the respective system Award/Maintenance dialogue the replacement payment made:

Step Action

I. generate a system payment using Dialogue IIS 100:Award/ Maintenance;

II. record any clerically generated replacement payment in Dialogue 100 Award/Maintenance.

Customer reports that a CA system-generated payable order is missing, lost, stolen or destroyed Action 187 Take the following action: Step Action

I. check on the OCA computer systems that the payable order has been issued, and

II. take action in accordance with Part 2 paras 22-26 and paras 56-57.

188 Contact the Payment Support Team on 01772 899304/307 Step Action

I. check PO issued to the correct address. If not send a written request to that address for the return of the correspondence;

II. if sent to the correct address annotate the inside of the DS1038 with ‘the payable order has been lost/stolen/not received’.

189 To get the serial number and date of issue of the PO: Step Action

I. telephone PST (Payment Support Team) with:

● the computer run or date of FF91B for clerical POs ● urgent/non-urgent details ● name and NINo of customer ● amount of payable order

II. Issue the DS954 to the customer. 190 Then once the serial number is obtained find out whether the payable order

has been cashed or not by: Step Action

I. telephoning ‘trace desk’ immediately on 01253 33 3840/3601 with: ● the serial number of the PO ● payee name and NINo ● amount of the payable order ● benefit code 0277/0095/0540 ● FF91B serial number and date of issue ● office name, serial number, your name and extension.

191 ‘Trace desk’ usually reply the same day. If the payable order is uncashed then:

Step Action

I. fax REV1 to PCG on 01253 33 3120 (ext 63120 if Centrex linked) to revoke the PO

II. await confirmation of revocation before re-issuing payment

III. do not countersign the LIOP3 as the PO has been revoked. 192 If ‘trace desk’ say the PO has been cashed: Step Action

I. fax REV1 to PCG on 01253 33 8514 (ext 68514 if Centrex linked) to request sight of original PO.

193 On receipt of the original cashed payable order: Step Action

I. check the bank/building society account details on the reverse of the payable order

II. contact the customer and confirm their bank/building society account details.

194 If details are the same then explain to the customer, either over the telephone

or by issuing DS1018 that the PO has been paid into their account. 195 If the bank/building society account details differ then refer the case to Benefit

Fraud section using a Pro Forma 55. The Benefit Code Number on the REV1 196 This part of the form relates to the Benefit Payment Code under which the

payment was made. All payable orders produced by computer are made under the 0277 BPC. All payments authorised by FF91B are made under BPC 0277, 0095 (revised dual recovery payment) or 0540 (revised single recovery payment).

197 For all system produced payable orders issued under the 0277 code the

Departmental Code Number (DCN) to be entered on the REV1 is 66008. 198 For all manual payable orders made by FF91B issued under the 0277, 0095,

0540 code the DCN to be entered on the REV1 is 66101. PART 6 Missing Schedule Payments 199 Schedule payments dealt by PSCS at Newcastle, should be reported as a

fault to the RMC. This is done by the FLLS/DEX, the RMC will require details of both the payment and the payee. PSCS will then revoke the schedule payment and send confirmation that the payment has been revoked. The office should then take action as in IB/MA Bulletin 27/97.

200 Returned schedule payments Schedule payments are issued by payable order through PSCS/INCAP. The payable orders are produced by the ACCs, the issuing office is shown as DSS Newcastle. Deal with any returned schedule locally. Do not refer it to Newcastle for action. 201 Finance action You cannot record returned scheduled payments on the system. If you receive a returned payment:

• take normal action to cancel the payment;

• note the schedule ‘payable order returned and cancelled’ and sign and date the entry; and

• pass the payment schedule to the STB section. 201 STB action

• A file should be held for each payee/institution to which payment is made. If a schedule payment is returned, PSCS will not issue another one. If payment is due:

• use RP702 to set the clerical papers indicator against the returned payment;

• use RP801 to record a management note to explain which payment was returned and the reason for return;

• use RP703/RP702 to record details of the replacement manual payment;

• use existing clerical procedures to issue a replacement payment; and • file the payment schedule in the relevant institution file.

Appendix 1 ‘Best Practices’ in IOP replacement procedures

• On initial contact an appointment should be made regardless of whether a customer visits the office or a telephone call is received. The appointment date should allow three days for delivery where applicable

• Wherever possible, the customer should be required to attend an interview

• The customer is to be advised at time of interview of possible consequences of fraudulent encashment

• Keep a form of index card system to allow checking for previous losses, including circumstances of loss etc

• Conduct an Informed Choice discussion with the customer when a cheque payment has gone missing i.e. at interview or over the phone. If the customer cannot be contacted then contact the customer in writing and send the DP Gen to the customer.

• Where possible, dedicated loss teams – including Post Office® Rewards Scheme System Update Officers & Validation Lines – should be set up, to cover all benefits

• During a loss interview, or an initial call regarding a loss, the seriousness, and potential value of loss should be stressed

• There should be regular liaison with counterparts in Post Office® Ltd to raise awareness and advertise any validation services available

• Post Office® should always be contacted to check whether the IOP has been presented. In cases where a cheque(s) has been reported missing, if it has been cashed and any form of identification used, no replacement should be made without further investigation

• After the first reported loss use a nominated Post Office® only

• Consider restricting Post Office® of encashment in high risk or repeat offender cases

• Where geographically possible, consider centralising loss reporting in one office

• Issue the stop notice as soon as a loss is reported without waiting for the declaration of the loss to be made in writing. Customers to be advised that if IOP is found it cannot be cashed and must be returned to DWP

• Ensure unsafe address lists are kept up to date, made accessible to all staff and referred to as part of all loss actions

• Put in place through liaison, processes for receiving and distributing IOPs in multi-occupancy addresses, i.e. YMCA, and ensure staff are familiar with these processes

• In ‘not received’ and ‘lost in transit’ cases, consider making customers report the loss to Royal Mail through their P58 procedures before any loss interview is conducted

• In loss after receipt cases, consider requiring customers to make a police loss report before any loss interview is conducted

• In theft cases, consider requiring customers to make a police crime report before any loss interview is conducted.

• Look at any other funds available to a customer to tide them over and allow time for the IOP to turn up, for example Child Benefit. Social Fund is not an option if benefit is due

Appendix 2 – Record of irregular encashments written off locally. (a) Customer’s name (b) NI number

Cheque(s) / serial

no

JSA (C)

JSA (IB)

IS

NIF Benefit

SF SF Non-NIF Benefit

JSA Tax Refund

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) No of entries brought forward Total amount brought forward

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

(a) (b)

No of entries to carry forward Total amounts to carry forward

Note 1: In combined payment cases show the IS portion of the benefit in the IS column, and the NI benefit in the following column Note 2: NI fund benefits are: GA, MA, IB, IVB, RP, SB, WB. Non NI Fund benefits are: AA, DLA, DWA, ICA, IIB, IIDB, MA, REA, Cat. C&D RP, SDA. Note 3: Pension Credit (MIG – Minimum Income Guarantee) should be included with IS in column 5

SF – Column 7: Indicate the type of Social Fund payment by entering one of the following: BL = Budgeting Loan CCG = Community Care Grant CL = Crisis Loan CWP = Cold Weather Payment (in multiples of £8:50) FP = Funeral Payment MP = Maternity Payment WFP = Winter Fuel Payment SSMG = Sure start Maternity Grant I certify that this is a true record of all irregular encashments during the quarter ending: _____/___/_____

Signature: ______________ (EO or above)

Print Full Name________________________ Telephone number___________________________________

IRREGULAR ENCASHMENT SUMMARY FULL DISTRICT NAME: NUMBER: SUMMARY OF ALL IRREGULAR ENCASHMENTS WRITTEN OFF LOCALLY Benefit Category Total Number Total Amount (£) Jobseekers Allowance (Contributory) Jobseekers Allowance (Income Based) Income Support Pension Credit National Insurance Fund Benefit Social Fund Non-national Insurance Fund Benefit Jobseekers Allowance Tax Refund SUMMARY OF CASES OVER £1200.00 TO BE ENTERED IN TABLE BELOW Benefit Category Total Number Total Amount (£) Jobseekers Allowance (Contributory) Jobseekers Allowance (Income Based) Income Support Pension Credit National Insurance Fund Benefit Social Fund Non-national Insurance Fund Benefit Jobseekers Allowance Tax Refund Please ensure that the supporting document (schedules) used to complete this summary sheet are attached before returning via Courier or E-mail to the address below

Number of sheets attached

I certify that this is a summary of a true record of all irregular encashments during the quarter ending: _____/____/_____ Signed: (EO or above) Date: Contact Name: Room Number: Section: Site: Direct telephone number: Quarterly returns and/or enquiries should be made to: IRREGULAR ENCASHMENT TEAM, ROOM 506, NORCROSS,BLACKPOOL TEL: 01253 333751. FAX: 01253 333875.

Appendix 3– List of updated forms & retention period. QB42 Missing Direct Payment action sheet QB51* Missing cheque action sheet QB52 and QB52W Notification of missing cheque QB53 and QB53W Information to customer regarding missing

cheque process QB54 and QB54W Information to customer regarding missing

cheque process - cheque cannot be immediately replaced QB55 and QB55W Notification that a missing cheque has been found encashed - request to see cheque at an interview QB56 and QB56W Notification that a missing cheque has been found encashed. QB57 Advice to Ops to note case papers with missing cheque and replacement details.

QB58 Cheque irregularities: Agreement with

Alliance and Leicester Commercial Bank plc QB59 Authority to replace a missing payment QB60 Stop order for cheque at Post Office (R) Retention period for QB/JSA forms above are 2 years from the date of closure or issue of a sanction. F7 Register – Record of Girocheques reported as not received, lost, stolen or destroyed – retention 3yrs Appendix 4 Missing Payment Letters (Word) Appendix 5 Deskaid 1 - Non-receipt of Direct Payment (Word)