William Eichler 10 September 2019

Housing fraud costs councils £16m each year

People who claim to live alone in order to get a council tax discount cost the local government sector nearly £16m a year, a new study has found.

The fraud prevention service Cifas, along with WPI Economics, found that in the 2017/18 financial year, detected Single Person Discount fraud – the third most prevalent fraud in UK – was valued at £15.8m.

They also learnt that one in seven people in London consider falsely claiming a Single Person Discount to be ‘reasonable’. Half this amount feel the same in the East Midlands, West Midlands, or South East.

In addition to Single Person Discount, unlawful subletting also remains a key issue for local authorities.

According to the CIPFA Fraud and Corruption Tracker Summary Report 2018, local authorities estimate that over £216m of housing fraud occurred in the 2017/18 financial year, and this includes fraud on right to buy and unlawful subletting.

‘Unlawful subletting and fraudulent housing claims put huge financial pressure on local authorities and, more importantly, it means that families are missing out on the opportunity of a much-needed home,’ said Mike Haley, chief executive officer of Cifas.

‘The consequences of this type of fraud are very serious indeed, and could result in a criminal conviction and a prison sentence.

‘I would urge anyone thinking of falsely claiming housing benefit to consider the real impact this can have on their future as well as that of the community at large.’

Cifas cites Harrow Council’s collaboration with Datatank as an example of how to tackle Single Person Discount fraud. The London council saved an estimated £3.6m in revenue.

Fern Silverio, head of service at collections & housing benefits for Harrow Council, said: ‘Like other councils, Harrow is under pressure to maximise its income, particularly in the face of recent funding cuts.

‘Our partnership with Databank has helped us maximise our returns, through eliminating the loss of revenue we would have experienced otherwise. It has helped us keep fraudsters on their toes, at the same as future-proofing our own validation techniques.’

SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,260 - £54,507
Social Worker£... London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanent, Full Time & Fixed Term, Full Time£46,861 to £52,068 per annum (full time equivalent)Location
Recuriter: Essex County Council

Customer Services Assistant - Dunmow Library

Essex County Council
Up to £25959.0000 per annum
Customer Services Assistant - Dunmow LibraryPermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Residential Childrens Homes Manager

Essex County Council
£55892.00 - £69241.00 per annum + + 8% on call allowance
Residential Childrens Homes ManagerPermanent, Full Time£55,892 to £69,241 per annum + 8% on call allowance Location
Recuriter: Essex County Council

School Business Manager 1

Durham County Council
£35,412 pro rata (pay award pending)
Required for 37 hours per week, term time only. Start date 2/11/26 but earlier start date could be arranged. West Rainton Primary School are seeking Durham
Recuriter: Durham County Council
Linkedin Banner