Fraud investigation

Benefits Fraud

The Council has the 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 who are actually entitled to receive them.

For that reason, we have our own Fraud section whose duties include:

• detecting fraudulent claims;
• stopping and reducing payment in fraudulent cases; and
• calculating overpayments of benefit on the discovery of the true facts.

Housing Benefit/Council Tax Benefit fraud

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

Any cases that arise in these circumstances will usually involve a joint investigation involving the Council and the Department for Work and Pensions. 

Non-disclosure of property/capital

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

Non-disclosure of income

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

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

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

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 entitlement to benefit.

False claims by homeowners

This is where the owner of a property falsely states that he or she is paying rent to occupy what is, in fact, his or her own property, usually inventing a fictitious landlord to do so.

Failing to declare change of address

Where a claimant fails to declare that he/she has moved, but continues to accept payments of Benefit for their previous address, they are committing a fraud.

False address fraud

This fraud may occur where a person is claiming for an address at which he or she is not in fact living. This type of offence 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 he/she is aware that the claimant has vacated the premises. Where the landlord has access to more than one property, there is the potential to move tenants around without informing the Local Authority.

There are many ways other ways in which landlords and managing agents can defraud the benefit system, particularly in areas where there is a large proportion of multiple occupation houses and there are many seasonal workers looking for short-term lets.

Fraudulent over-payments

An overpayment may be treated as fraudulent if the local authority can establish that, on the balance of probabilities, there has been either:

• a breach of Section 111A or 112 of the Social Security Administration Act 1992 (false representations for obtaining benefit;); or
• an identified person knowingly failed to report a relevant change of circumstances, contrary to the requirements of Regulation 88 of the Housing Benefit Regulations 2006, or Regulation 74 of the Council Tax Benefit Regulations 2006, with the intent to obtain or retain benefit for themselves or some other person.

Failure to notify a change of circumstances must have been carried out deliberately. There must be evidence of dishonest intent, not inadvertence, lack of understanding, or negligence on the part of the claimant.

It is estimated that nationally, the Government loses £2 billion a year through people claiming Benefits money that they are not entitled to. That is equal to £80.00 for every household in Britain.

North Shropshire District Council has a responsibility to look after public funds and ensure that Housing Benefit and Council Tax Benefit are only awarded to people who are entitled to it.

Unfortunately, some people fail to tell us about circumstances or changes in their circumstances that would reduce the amount of benefit they receive. This can also be known as Benefit fraud.

We are committed to stopping Benefit fraud in the district by investigating possible cases of fraud reported to us. These investigations can include:

• Interviewing claimants.
• Carrying out surveillance on individuals.
• Prosecution of claimants (Benefit Fraud is a Criminal Offence).

If you think that someone is claiming money that they are not entitled to, we need you to tell us about it. The types of fraud we need to know about include:

• Single people with undeclared partners living with them.
• People failing to declare pensions.
• People failing to declare work or capital.
• People failing to declare bank or savings accounts.
• People not living at the address for which they claim Benefits.
• Property, which may be owned but not disclosed to the Council.
• Landlord fraud (non-existent or multiple tenants).

When you tell us, we also need to know:

• The name of the person or persons you wish to report.
• The address at which you think fraud may be taking place.
• Why you think a fraud is taking place and any details you have.
• The name of the employer if you think someone is working and has not told us.
• The name of the partner if you think someone has a partner that they have not told us about.
• Any other details you think we need to know about.

In order to tell us about someone you think is getting Benefit that they are not entitled to, please contact us in any of the following ways:

By telephone, on:

• Confidential Fraud Hotline 01939 238441
• National Fraud Hotline 0800 3286340 (a freephone number)
• Benefits Team 01939 238450
• Switchboard 01939 232771

By post at:

Benefits Service Investigation Team
North Shropshire District Council
Edinburgh House
New Street
Wem
Shropshire SY4 5DB.

For more information regarding Fraud investigations please contact us using the details below.

ALL REFERRALS ARE TREATED IN THE STRICTEST CONFIDENCE