Region third in tax and benefitcheats league

Laurie Whitwell

MORE than 15,900 cases of fraud worth 13.4m were uncovered by Yorkshire councils last year.

Thousands of instances of council tax and benefit cheating were detected in the county, with Yorkshire having the third highest number of detected frauds in the country according to an Audit Commission report.

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The region recorded the fourth largest cost to taxpayers as a result of fraud, behind only London at 34.6m, the South East at 24m, and the North West at 17.6m.

The Commission found that such crimes cost the nation nearly 135m last year with benefit cheats accounting for 99m alone.

The annual study – Protecting the Public Purse – investigated the impact of frauds such as council tax, benefits and blue badges on council budgets and questioned local authorities about their methods of detection.

Almost 50,000 false council tax discounts for single people, where only one resident at an address was above the age of 18, were stopped, increasing local tax revenues by 15m.

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The Commission also discovered a record rise in tenancy fraud detection – with almost 1,600 social housing properties that had been unlawfully sub-let recovered.

In one case a housing association that was charging 53 a week in rent discovered the tenant had been fraudulently sub-letting the property to a pensioner for 225 a week for nearly two and a half years.

The association was awarded 27,169 by a court as compensation for the profit made by the fraudster.

Altogether a total of 7,000 other kinds of fraud were identified, costing the taxpayer a further 21m.

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With authorities forced to find savings to cope with a 26 per cent cut in Government funding over the next four years, the report warned councils to keep tackling fraud as a high priority issue.

Audit Commission chairman Michael O’Higgins said: “Preventing and detecting fraud has never been more vital.

“Every pound saved can be used to strengthen public services. Cheats must not be allowed to block legitimate tenants from social housing, or divert other resources away from those in need.”

Mr O’Higgins pointed out that councils were joining forces to combat cheats and said this was an effective method for policing fraud committed across regions.

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The report highlighted Kirklees Council’s financial investigation service, which shares reports from accredited financial investigators, who identify proceeds from frauds in order to claw them back, with other local authorities in the region – including Bradford, Calderdale and Wakefield councils. Mr O’Higgins added: “Fraud prevention and detection requires a concerted response by local authorities and their partners. Good work is undoubtedly being done by many councils.

“But research indicates that even this is uncovering only the tip of a huge iceberg.

The report also highlighted Leeds Council, which encouraged whistleblowing by the public as a means of identifying suspected tenancy frauds such as illegal sub-letting.

In addition to a rolling programme of tenancy audits the council said the scheme had resulted in an extra 20 properties being recovered.

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Viridian Housing chief executive Matthew Fox said those taking advantage of social housing through sub-letting would face the fullest penalties when caught.

Mr Fox said: “In a world where there is a desperate shortage of affordable housing we think it is just plain wrong to exploit the welfare state by unlawfully sub-letting. It undermines the sense of a air society and what it means to be a good citizen.

“That is why we are not satisfied just with recovering our property but we also pursue fraudsters for civil recovery of money stolen from us all. We, and almost all of our residents, want to send a strong message that we will not tolerate such behaviour.”

In light of the Government’s confirmation that the Audit Commission will be abolished, the report also stressed that the Department for Communities and Local Government should ensure the work to collate such information continues.