A report investigating how housing benefits staff at Oxford City Council cost the authority £1m is set to recommend radical changes.

Earlier this year, it emerged that benefits staff, who were experiencing computer problems, continued to pay out benefits without checking if claimants were still eligible.

The practice, which broke Government guidelines, means the council now faces losing £1m of the 95 per cent of benefit payment it is entitled to reclaim.

The Oxford Mail highlighted the problem in July, when the cost of the blunder was £500,000.

But earlier this month it was revealed that nothing had been done, and the cost had doubled.

Councillors immediately demanded an inquiry into the working practices of the department, and a report is being prepared for the council's Executive Board meeting on Wednesday.

It is expected to recommend radical changes in the department to eliminate further funding errors.

Council leader Corinna Redman said the report would make a series of recommendations to bring about improve- ments.

She added: "Officers may be asking the council for more money to deal with the backlog in the service but we will not put more money in unless we are sure that problems within the department have been properly addressed.

"We want to see a real improvement over the next six months and we hope this report will point the way forward."

The report has been overseen by the council's recently appointed temporary finance director, Peter Argent.

It is understood that consultants spent time watching working practices in the housing benefit department, so that they could recommend changes.

Green councillor Dr Mike Woodin added: "We are aware that the service needs to be improved and decisive action will be required.

"The report is likely to make far-reaching recommendations to improve the quality of service."