Fraudsters cost Wolverhampton Council £2m in a year

The money has been lost as a result of fraud relating to benefits, housing and council tax and tenents illegally renting out properties.

In the 12 months to June the council dealt with a total of 1,163 cases of fraud relating to housing tax benefit and council tax, amounting to a loss of £1,046,000.

Fraud investigators at the authority also discovered more than half a million pounds was lost from its council house operator Wolverhampton Homes, with the bulk of the 28 cases involving crooked applications or the illegal transfer of tenancy agreements.

There were 11 cases of tenants illegally sub-letting their council properties at a cost of £198,000 to the authority, while a further £16,000 was siphoned off by thieves claiming pension cash for dead people.

The figures were compiled in a report by Wolverhampton City Council's Counter Fraud Unit, which was set up to investigate deception as part of the city's Audit Services.

Some have now appeared before the courts while investigations continue into other cases.

It marks a city-wide crackdown on fraud which also includes investigations into taxi drivers, scrap dealers and landlords.

A further £10,000 lost as a result of people securing bogus council grants.

In the report the authority says it is taking action to 'recover the value of each fraud where appropriate'.

Earlier this month communities secretary Eric Pickles launched a multi-million pound fund to help councils reduce levels of fraud, saying the clampdown would help authorities reduce the budget deficit.

The cost of fraud to local authorities in the UK is estimated at £2.1 billion a year.

Bosses at Wolverhampton City Council say they are committed to creating an environment where 'fraud, corruption and bribery will not be tolerated'.

Paul Brown, spokesman for Wolverhampton City Council, said: "The city council operates a zero tolerance policy on fraud, corruption and bribery and takes seriously all allegations of fraudulent activity made to us.

"The cost of fraud to local government is estimated at £2.1bn a year - money that could be used for local services.

"We won't hesitate to take action if we suspect fraud has been committed against the council, and therefore taxpayers, and we will make every effort to recover all monies stolen from the council, either through the courts, by making deductions from ongoing benefit and the use of bailiffs as and when necessary."

As part of a nationwide shake-up some benefit fraud employees currently working for the council will transfer over to the DWP's Single Fraud Investigation Service in June next year.