Warning to benefit cheats as team claws back thousands

A new scheme, thought to be the first of its kind in the nation, was launched last year and has involved a major streamlining of services between councils.

A company, Veritau Ltd, was formed at the start of April last year and has since identified more than 300,000 of fraud and incorrect payments in the benefits system.

The firm was established through a partnership between York Council and North Yorkshire County Council, after the two authorities merged their internal audit and governance teams.

The scheme has prosecuted 21 people and applied 23 other sanctions including official cautions for benefit-related fraud in York alone, and a contract has also been secured to provide services to Ryedale District Council. Anyone convicted on benefit fraud faces a custodial sentence and a fine running into thousands of pounds.

York Council's executive member for corporate services, Richard Moore, said: "The Veritau team has been very successful in identifying benefit fraud during their first year and should be a clear deterrent to anyone looking to cheat the system."

Veritau, which has a board of directors comprising members and officers from both councils together with two external directors, was launched to provide services under an initial 10-year contract, with an option to extend it for a further five years.

The company is owned by both councils and was created to combine the resources of the authorities' internal teams.

The move to establish the firm is part of a growing trend for local authorities to share services between each other in an attempt to save money and become more efficient.

Hambleton and Richmondshire councils are also sharing a range of services, including refuse collections and information and technology, to save taxpayers hundreds of thousands of pounds.

The pioneering initiative has also seen the Hambleton authority sharing a chief executive and management team with neighbouring Richmondshire Council.