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Benefit cheats claim £581k from Wolverhampton City Council in 12 months

Hundreds of thousands of pounds was paid out to benefits cheats who made fraudulent claims from one cash-strapped council in 12 months, a new report has revealed.

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Wolverhampton City Council overpaid £581,000 in benefits between 2013 and 2014 and a new document has now been drawn up detailing the areas where it is at most risk from fraudsters' claims. Housing tenancy; housing benefit; council tax and personal budgets for carers has been given an at-risk risk rating of 'red'. Business rate fraud has been given an 'amber' rating while manipulation of data is flagged as 'green'.

A report due to go before the council's audit committee next week says 527 investigations into 'over payments' of benefits were carried out within the time frame.

Of these 175 were found to have substance as the figure of how much was cheated from taxpayers emerged.

Vice-chairman of the committee Councillor Wendy Thompson said fraudsters who abuse the system 'will be chased'.

Highlighting fraud investigations in 2013/14 the report reads: "Wolverhampton City Council is committed to creating and maintaining an environment where fraud, corruption and bribery will not be tolerated.

"This message is made clear within the authority's anti-fraud and corruption policy, which states: 'The council operates a zero tolerance on fraud, corruption and bribery whereby all instances will be investigated and the perpetrator(s) will be dealt with in accordance with established policies. Action will be taken to recover all monies stolen from the council'."

A letter has also been circulated to council staff warning them to be on the lookout for fraudulent activity and encouraging them to blow the whistle on internal fraud such as false expenses claims.

It states: "Fraud can take many forms and can be committed by the public in the form of benefit fraud, people falsely claiming social care payments, false grant applications and fraud against schools."

Conservative city councillor Wendy Thompson said the council is committed to taking action against benefit cheats.

She said: "The Government has put in place measures to make sure that money is going to people who need it. We as a council are not in a place to put up with this and we will be chasing the people who abuse this system."

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