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Audit Commission > National Fraud Initiative > Public sector > Case studies – Public Sector > Payroll case studies

Payroll case studies

South Bucks District Council

2010/11

A NFI housing benefit to payroll match resulted in an NHS employee receiving a six month suspended sentence after it was discovered she had fraudulently claimed over £7,000 of benefits.

The investigation of the match by South Bucks District Council revealed she had been working as a full time senior staff nurse while claiming and receiving housing and council tax benefit. Her salary had been paid into a bank account which she had not revealed to the Council.

In addition to receiving a suspended sentence the woman was ordered to repay the benefit overpayment.

Tendring District Council

2010/11

A NFI housing benefit to payroll data match showed that a Tendring District Council employee had failed to declare that she had been working for the Council for just under two years while claiming housing and council tax benefit payments.

Investigation of the match revealed that not only had she been employed at the Council but that she had also had another job that she had failed to declare. She had also maintained two bank accounts in an attempt to conceal the payments from the housing benefit team. She admitted that she was aware additional income would affect her award of housing and council tax benefit. She resigned from her post and was prosecuted.

She was sentenced to 21 day prison term, suspended for 12 months, and 100 hours unpaid work. She agreed to repay all overpaid benefit which amounted to just under £9,000 and was required to pay £375 prosecution costs.

Liverpool City Council

2008/09

Investigation of a housing benefit to payroll NFI match identified a council employee who had illegally claimed £40,000 of housing and council tax benefit for nine years, between 1996 and 2005, while owning a £500,000 property portfolio.

Following an investigation by the Councils Internal Audit and Benefit Fraud Team the individual was taken to court and pleaded guilty. They had a confiscation order of £100,000 imposed and were ordered to repay over £10,000 in costs.

The individual, who was employed as a social worker, resigned from her position whilst under investigation by the council.