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Housing & Council Tax Benefit Fraud Detection & Prosecution

If you know of or suspect someone of committing benefit fraud you can:

  • Call our free to phone “Hotline” (0800 328 6340) between 8.30am and 6.30pm
  • Text us on 0800 328 6341
  • Email information to hb.investigations@waveney.gov.uk   
View guidance notes for completing Waveney District Council’s Report of Suspected Fraud form.

The Council has a duty by law to administer a benefits service to those within its area who qualify. We also have a responsibility to ensure that payments are made only to those actually entitled to receive them. For that reason we have our own dedicated fraud section, the Housing Benefit Investigation Team whose duties include:
  • Detecting fraudulent claims;
  • Stopping and reducing payments in fraudulent cases;
  • Calculating overpayments of benefit on the discovery of the true facts.

Housing Benefit and Council Tax Benefit Fraud

This can take place in a number of ways involving the claimant or the landlord or both acting together. The fraud can occur from the onset of the claim where false information/evidence is provided for the purpose of obtaining benefit or as often occurs by the claimant failing to notify the Council of changes they know will affect their entitlement to benefit. The following are types of fraud the investigators deal with.


Working and Claiming Fraud

This usually involves claimants who are in receipt of Housing and or Council Tax Benefit on the basis of their entitlement to Job Seekers Allowance or Income Support, but who are in fact working.

Investigations in such cases will usually involve a joint investigation involving the Council and the Benefits Agency investigators.


Non-disclosure of Property/Capital

This fraud is were the claimant fails to declare either savings/capital or the ownership of another property or land elsewhere (for which they may also be receiving rent).


Non-disclosure of Income

This is where the claimant fails to declare all of the household income, knowing or intending that the non-declaration will increase their benefit award.


Non-disclosure of a Partner (living together as husband and wife)

This fraud usually involves a claimant on Income Support or Job Seekers Allowance failing to declare the presence of a partner within the household who is working, knowing or intending that this would affect their entitlement to benefits.


Non-declaration of Non-dependants and or Sub-tenants

It is fraudulent if a claimant fails to declare the presence of other adults living in the property, in order to preserve or increase their entitlement to benefit.


False claims by Homeowners

This is where the owner of a property falsely state that they are paying rent on the property they occupy when in fact they own the property, usually inventing a fictitious landlord to do so.


Failing to Declare a Change of Address

Where a claimant fails to declare that they have moved but continue to accept payment of Housing Benefit for their previous address, they are committing fraud.

False Address Fraud

This fraud may occur where a person is claiming for an address at which they are not living. This type of fraud may occur with the collusion of the landlord or other tenants.


Landlord Fraud

This is where a landlord continues to receive benefit paid directly to him/her for a period after which they became aware that the claimant had vacated their property.

There are many other ways in which a landlord and managing agent can defraud the benefits system, particularly in areas where there is a large proportion of multi occupation houses and where there are many seasonal workers looking for short term accommodation.


Council Policy on Benefit Fraud

The Council has adopted a policy that means not only is the fraudulent claim corrected but that overpaid benefit is recovered. In addition where it is established that a fraud has been committed the Council will take appropriate sanction action that can include prosecution through the Criminal Court if it believes it is in the public interest to do so. In cases where the overpayment is less than £2000 and the Council believe it is not in the public interest to prosecute the fraudulent claimant they may be dealt with by being given a stern warning or “Caution” as to their future conduct. In some instances as an alternative to prosecution the Council offers the fraudulent claimant an “Administrative Penalty” where they have to repay the overpayment and a 30% levy.

Between 1 April 2006 and 31 March 2007 the team dealt with fraudulent claims that have resulted in 6 Cautions, 6 Administrative Penalties and 9 successful Prosecutions. A further 12 cases are currently pending prosecution.

A total of £358,781.76 has also been identified as being overpaid to customers during the same period attributable to a mixture of customer error and customer fraud.

Fraud Costs Money. Your Money! Help Put a Stop to Fraud


What Happens When a Fraud is Established?

The decision takes into account the following factors included in the Councils Prosecution Policy:
The age and health of the offender
We do not have a policy of ruling out a sanction just because someone is of pension age. Each case is considered on its own merits, taking into account their mental and physical health

Period of the offence
To commit a long standing fraud the offender is more likely to have taken positive action to avoid being found out indicating deliberate dishonesty

The amount of Overpaid Benefit
Depending on the amount involved it may not be cost effective to consider further action. The Council will not consider Court action on cases with minimal overpayments

Was it a deliberate lie or a false declaration?
Did the offender set out to defraud from the outset, lying when asked direct questions, or did they fall into ' Not declaring a change of circumstance category?

Any evidence that the Council has failed in its own responsibilities
Did we follow correct procedures or fail to act on information already held?

Did the offender co-operate with the investigation?
When confronted with the facts did the offender provide reasonable answers and explanations, or did they compound the fraud by making up excuses?

Does the offender admit guilt and demonstrate remorse?
Have they stated they are sorry and made attempts to make good any loss/overpayments?
In general the principles are the same as considered by any prosecutor with the overriding consideration that any prosecution must be in the public interest.


Contact Us

If you know of or suspect someone of committing benefit fraud call our free to phone “Hotline” (0800 328 6340) between 8.30am and 6.30pm where you can speak to someone trained in taking information. Alternatively you can text us on 0800 328 6341, email information to hb.investigations@waveney.gov.uk   

Or:


Fraud Hotline: 0800 328 6340
Text Hotline: 0800 328 6341
Fax: 01502 523505
Email: hb.investigations@waveney.gov.uk  
 
Postal Address Housing Benefit Investigation Team
Waveney District Council
Town Hall, High Street
Lowestoft
Suffolk
NR32 1HS