This report considers the key fraud risks and pressures facing councils and related bodies and identifies good practice in fighting fraud. It has never been more important that councils fight fraud. Every pound lost to cheats is a pound that cannot be used for people in real need. The report identifies specific risks that are often not adequately addressed, to do with housing tenancy, council tax and recruitment fraud.
The Commission found housing tenancy fraud could be tying up at least 50,000 council and housing association properties worth more than £2 billion, while queues for homes have increased by more than 50 per cent over the last six years. The number of people in need of social housing is predicted to rise to 2 million by 2011.
Council taxpayers could be losing almost £2 million a week to fraudsters claiming a 25 per cent single person discount on their council tax. The discount can be claimed by householders where there are no other residents aged 18 or over living at an address.
The report provides an overview of the threats of fraud facing councils. It calls on them to urgently reassess their counter fraud plans and to ensure that staff understand, and have faith in, whistle-blowing arrangements.
The report is supported by a range of materials including:
- a summary and recommendations
- an extended summary including case studies and more
- a checklist for councils to help ensure that they have sound governance and counter-fraud arrangements that are working as intended (found at the back of all documents)
If you have any questions about the report contact Derek Elliott, Head of Governance and Counter Fraud, email: derek-elliott@audit-commission.gov.uk or tel: 0844 798 2313.