Wednesday, 27 October 2010

Councils Fleeced of £135m through Fraud, Says Audit Commission

Councils were fleeced of £135 million through nearly 120,000 frauds last year. Scams involving the 25% single person council tax discount cost authorities £90 million alone after a "sharp increase" in claims, the soon-to-be abolished Audit Commission said. The commission - one of scores of public bodies being scrapped by the Government as part of cost-cutting measures - defended its work and warned that significant council staff cuts could weaken local authority controls. Next year's "valuable" fraud survey would be the last, it added. Other scams identified saw people claiming student council tax discounts using fake colleges and addresses. Some 50,000 properties worth £2 billion had also been illegally sub-let or occupied. Tenancy fraud - where people live in council houses to which they are not entitled or illegally sub-let them - could end up doing the most damage, the report warned. Read more on 24dash.

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