A PILOT project targeting benefit overpayments has been labelled “a snooper’s charter” by a Vale councillor.

According to a West Dunbartonshire Council spokeswoman the local authority was one of a dozen around the United Kingdom to be chosen to take part in the project operated by a company named CapacityGrid.

The company targets potential overpayments of benefits such as council tax and housing benefit. It also targets fraudulent claims in areas such as single person discounts (SPD) on benefits.

They analyse data on behalf of the local authorities and flag up anything untoward in benefit claims.

Locally, the pilot ran for 10 months and Council Tax Reduction (CTR) overpayments of £58,026.07 were identified during this time.

All of the overpayments identified were due to residents not declaring income or household changes and not errors that we made when processing CTR claims.

The company’s website says it is helping councils to achieve best operational return.

Leven ward councillor Jim Bollan was unaware that the company was being used to carry out work normally undertaken by the council until he was approached by one of his constituents who received an official letter from CapacityGrid informing him that that there had been an overpayment in housing benefit of £800.

Cllr Bollan told the Reporter: “This was put in place without the knowledge of councillors. This is a snooper’s charter and at best it’s a questionable pilot scheme.

“It was a constituent who brought it to my attention. I suspect that the Labour administration did know about it.

"There is so much power being delegated to officers by Labour Party councillors and we are never told about it.

“It’s another indication that the officers are running the council and the bigger picture is that it is leading to the privatisation of the benefits system. They are taking over the role of council employees.”

Cllr Bollan slammed the Labour administration, adding: “The very fact that the Red Tory Cllr’s running WDC would even countenance helping a Tory government to implement a pilot scheme to prey on benefit claimants, makes my stomach churn.

“An added insult is this partnership working with the Tories was, that it was kept secret from opposition councillors who should have had an opportunity to scrutinise and vote on this snoopers charter in front of the press and public.

“It is no coincidence the Red Tories are involved in this privatisation pilot programme while at the same time cutting four Welfare Rights Officers jobs, the very officers who assist claimant’s to maximise their entitlement, as the Tories try to cut their benefits.

“The sooner we have an open, democratic and accountable council again, the better.”

CapacityGrid claims to have saved the 12 local authorities involved in the pilot projects in the region of £2.5 million.

A short introduction to the services on the landing page of their website reads: “Our Fraud and Error Reviews Service is on track to achieve £2.5 million of savings by June 2016 for a consortium of 12 local authorities since it went live in early 2015; £1.5m of council tax reduction adjustments and £1m of housing benefit overpayments.”

CapacityGrid operates an SPD Review, a cloud-based service application that provides councils with what it claims is “a simple and cost effective means of eliminating fraud and error across single person discount awards”.

A West Dunbartonshire Council spokeswoman said: “West Dunbartonshire was one of 12 UK councils selected to take part in a pilot project fully funded by the UK Government which used CapacityGrid to analyse data in an effort to reduce fraud and error within council tax claims. The information was referred back to the council for any required action.

“Now that the pilot is at an end, this responsibility will be undertaken by council staff.”