A counter-fraud team in Dundee have uncovered benefit overpayments of more than half a million pounds in just six months.
Their investigations have led to 19 people being reported for possible prosecution and seven cases have already resulted in guilty verdicts. One case dealt with involved an overpayment of more than £75,000.
The figures, which cover illegally and mistakenly claimed housing and council tax benefit, are revealed in a report that will be presented to city councillors next week.
Marjory Stewart, council finance director, said, “The levels of overpayments identified by the counter-fraud unit have increased significantly when compared to 2009/10, mainly because of a small number of investigations that have had exceptionally high levels of overpayment values.”
Between April and September, the team carried out 174 investigations and 91 of these resulted in people having their benefits either reduced or stopped. The total overpayments identified came to £573,000 — compared to £258,000 in the same period last year.
Almost two-thirds of it was believed to be the result of fraud, with the rest stemming from errors by claimants.
Efforts are made to recover the overpayments and in 55% of cases they have already been paid back in full. Measures are in place to have another 18% recovered. In 15% of cases the debtor has failed to put repayment procedures in place and these are still being pursued. The council has had to write off a further 11% of cases.
In 40 of the most serious cases a decision was made to seek further sanctions, with 21 people subjected to administrative penalties or cautions and the rest referred to the procurator fiscal.
A decision on whether to pass a case on for possible prosecution is taken after looking at a variety of factors, including the amount involved, how long the fraud has been going on, and whether criminal intent can be demonstrated.
Of the 19 cases referred to the fiscal the outcome is known in 12 — there were seven guilty verdicts, one not guilty and four did not result in a prosecution.
Ms Stewart said, “There have been twice as many successful prosecutions led by the city council in comparison to the same period in 2009/10.”
Her report also shows that the counter-fraud team received just over 600 referrals of possible benefit overpayments. That included 167 members of the public who got in touch to say they suspected someone of making a fraudulent or incorrect claim.
Anyone who suspects a benefit fraud can report it at www.dundeecity.gov.uk/fraud or by calling 0800 085 2289.
Photo courtesy of Stewart Lloyd-Jones.