Sandwell Council has issued a report which shows it has saved over a quarter of a million pounds in fraud in the financial year of 2023/2024.
In its annual Counter Fraud Unit report submitted to Sandwell Council’s Audit and Risk Assurance Committee it was revealed that the amount of fraud identified or overpaid money which is being recovered is £232,582, based on
• Financial value of Single Person Discount awards on Council Tax removed - £68,496
• Covid business grants - £10,000
• Council Tax fraud - £14,917
• Direct Payments - £139,169
In addition, penalties and additional action will result in the council receiving an additional £19,081 based on:
• Council Tax Financial value of penalties issued - £13,440
• Unlawful Profit Orders - £5,641
Importantly the council also works to prevent fraud so it does not lose or later have to recover the money. Examples include:
• The prevention of fraudulent Right to Buy discount of over £53k
• The cancellation of 19 housing applications prior to allocation
• The recovery of 30 properties which were being misused so they could be reallocated to those in need of housing
• The removal of two instances of Housing priority status
• The withdrawal of two school places.
• Tackling blue badge fraud (Sandwell leads the way in tackling Blue Badge fraud | Sandwell Council)
In addition, the council’s own Counter Fraud Unit successfully prosecuted 12 cases
• Five cases of misuse of disabled person’s blue badges
• Two cases of subletting council properties
• One case of fraudulently obtaining a COVID business grant
• Three cases of fraudulent use of adult social care payments
• One case of theft of a laptop
The council operates a zero tolerance on fraud, corruption and bribery. All instances will be investigated and the perpetrators will be dealt with. Action is taken to recover all money stolen from the council.
Councillor Paul Moore, Sandwell Council’s Deputy Leader, said:
“Not only is fraud theft, it impacts on the most vulnerable members of our community.
“If someone claims discounts or grants to which they are not entitled they are taking money away from frontline services. If they are misusing the housing system they are potentially denying a home to the vulnerable people most in need.
“If you know, or suspect, someone of fraud let us know. Swift action will be taken.”
Anyone wishing to report any suspected fraud within Sandwell can do so by email or by telephone 0121 569 2650 to leave a message.
In 2023 the Home Office’s Fraud Strategy: Stopping Scams and Protecting the Public outlined the fact fraud now accounts for over 40% of crime, but receives less than 1% of police resource. This highlights the significant responsibility that councils and other public bodies have to protect public funds.