In Focus Risk
A crime with victims
Research reveals false housing-benefit claims are the third most prevalent fraud in UK
Mike Haley Chief executive officer, Cifas
Our recent research has revealed that falsely claiming Single Person Discount (SPD) is the third most prevalent type of fraudulent activity carried out by British adults. SPD is where a person claims to live in a
single-person household in order to receive a Council Tax discount from their local authority. In the 2017-2018 financial year, detected SPD fraud was estimated to be £15.8m – money that could have been used to support other services and individuals within the community. The research, carried out in conjunction
with WPI Economics, also showed that adults in London were twice as likely to
authorities. According to the CIPFA Fraud and Corruption Tracker Summary Report 2018, housing fraud, a seemingly ‘victimless’ crime to many, is estimated to have cost local authorities over £216m in the 2017-2018 financial year, and this includes fraud on right-to-buy and unlawful subletting. Unlawful subletting in councils occurs
when individuals let out their council housing without the permission of the council, meaning that, in times of high demand for social housing, those in need may be denied the housing they require due to a seeming lack of available housing. Unlawful subletting is a criminal offence in
to relinquish their tenancies, as they are aware they may never obtain a council property again. “Due to extremely high private-rental
charges in the area, by subletting a council property at a similar market rate to privately- owned properties, the council tenant will make a huge profit. “Subletting has a huge impact on the
borough and local community, as the council is unable to offer these properties to people in genuine need.” Unlawful subletting and fraudulent
housing claims put huge financial pressure on local authorities and, more importantly,
According to the CIPFA Fraud and Corruption Tracker Summary Report 2018, housing fraud, a seemingly ‘victimless’ crime to many, is estimated to have cost local authorities over £216m in the 2017-2018 financial year
believe falsely claiming a SPD on Council Tax is reasonable (14%), as opposed to respondents in the East Midlands, West Midlands, or South East (7% each). These figures are being used as part of
our ‘Faces of Fraud’ campaign, which aims to challenge those seemingly harmless behaviours that are, in fact, illegal. In addition to SPD, unlawful subletting remains a key housing-fraud issue for local
October 2019
the UK and can lead to criminal prosecution and the loss of the individual’s home. Kevin Campbell, deputy head of internal
audit and anti-fraud at Waltham Forest Local Authority, said: “Council housing is in huge demand, and when a tenant’s circumstances change – for example, where they may have married and moved in with a partner – a council property is vulnerable to subletting. Council tenants do not want
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they mean that families are missing out on the opportunity of a much-needed home. The consequences of this type of fraud
are very serious indeed, and could result in a criminal conviction and a prison sentence. I would urge anyone thinking of falsely
claiming housing benefit to consider the very real impact this can have on their future, as well as that of the community at large. CCR
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