Types of fraud

You can report fraud of any type.

These include:

On this page:

Benefit fraud

Benefit fraud is falsely claiming money from the government. It's an intentional deception which takes money away from those that need it most.

It's a criminal offence for you to make a false statement to get a benefit or reduction that you would not otherwise be entitled to.

Fraud can also happen after the claim has been made where you don't tell us of a change of circumstance that may affect your entitlement to a benefit or reduction. This includes:

an undeclared partner
not telling us about a partner when they first make a claim, or not letting us know when a partner moves in during the claim
undeclared income
not telling us about money coming into the household, whether at the start of the claim or during the claim such as from tax credits, other benefits or rent from a lodger
undeclared earnings
not telling us about any employment, or a partner's employment, at the start or during a claim
failing to tell us about an increase in earnings or a second job
undeclared capital (money in accounts, savings, property or investments held by you or a partner, for example)
claiming at an address you do not live in
not declaring another occupant who is not your partner
falsifying rent document

This list is not exhaustive but shows some examples of benefit fraud.

Council tax fraud

All households are required to pay council tax.

Council tax fraud is when a person deliberately gives incorrect or misleading information to pay less or no council tax.

Council tax fraud involves falsely stating that:

you're the only adult occupier and claiming Single Person Discount
your property falls under the exempt property rules
you have an exempt person in your property

Council tax fraud can start when a claim is made if you provide false information or fail to tell us all of the information required to assess your claim for a reduction, or your entitlement, to a discount or exemption.

It's a criminal offence for you to make a false statement in order to get a reduction, discount or exemption that you would not otherwise be entitled to.

Fraud can also happen after the claim has been made where you don't tell us of a change of circumstance that may affect your entitlement to a reduction, discount or exemption.

Business rates fraud

Business rate or non-domestic rate fraud is when a business avoids paying the correct fees for local services.

Examples of business rate fraud include falsely stating a property is occupied or unoccupied, avoiding paying costs by not declaring that a business is located at a certain premises, or falsely claiming discretionary or mandatory reliefs.

Housing fraud

Housing fraud stops council housing going to the people who really need it. We will take legal action to evict illegal tenants and recover unlawfully occupied property.

Types of housing fraud can include:

submitting false information to obtain a property
staying in a property after the tenant has died (unless you have a right of succession to take over the tenancy)
when property is no longer the tenant's main home
when the entire home is unlawfully sublet
when an unapproved mutual exchange of property has been made
when a tenant has unlawfully passed their tenancy on to someone else (key selling)
the applicant has not lived in property for qualifying period
undeclared Capital
Right to Buy fraud
Disabled Facility Grant fraud

Internal fraud

Corrupt activity may include:

criminal misconduct by a council employee or a contractor
employee fraud including theft, embezzlement, bribery
procurement and contract fraud - influencing the tender process, false/duplicate invoicing
claiming travel and subsistence for journeys that were not made.
processing false claims from accomplices
conducting personal work while being paid by the council

Grant fraud

The council awards grants to numerous individuals or businesses for wide ranging purposes for help with disabled facilities to community schemes. Providing false, fictitious, or misleading information on the application is an example of grant fraud.

Sanctions available to the council

Penalties for Council Tax Reduction Schemes

Under The Council Tax Reduction Scheme (Detection of Fraud & Enforcement) (England) Regulations 2013 it is an offence to make a false statement to the Council or to fail to notify a change in circumstances.

Regulation 11 of the Council Tax Reduction Schemes (Detection of Fraud and Enforcement) (England) Regulations 2013, enables an authority to invite a person to agree to pay a penalty as an alternative to prosecution for an offence relating to the award of a reduction under a Council Tax Reduction Scheme.

The amount of the penalty would be 50% of the amount of any excess reduction (overpayment).

Regulations 12 and 13 of the Council Tax Reduction schemes (Detection of Fraud and Enforcement) (England) Regulations 2013 also enables an authority to impose a penalty of £70. This may be in circumstances such as where a person negligently gives an incorrect statement or negligently gives incorrect information. Or where a person fails to give a prompt notification of a relevant change in circumstances.

Penalties for Council Tax

Schedule 3 of the Local Government Finance Act 1992 enables a billing authority to impose a penalty of £70 if a person fails to supply information or knowingly supplies information which is inaccurate in relation to their Council Tax Account.

Prosecution

Under The Council Tax Reduction Scheme (Detection of Fraud & Enforcement) (England) Regulations 2013 the authority may bring legal proceedings against an individual where sufficient information is held to justify a prosecution.

A person prosecuted by the council would normally be summonsed to appear before a magistrate Court.