[Bluey]

SOUTHWARK COUNCIL'S crack down on housing benefit fraud has been praised by an independent watchdog, after it reclaimed 49 houses, saving over £2 million for the borough.

Southwark were among the few success stories in the Audit Commission's National Fraud Initiative (NFI) report for 2006-07.

The council's housing department has recovered 30 social housing properties that have either been sub-let by the registered tenant, or allocated under a false name while a further nineteen homes are being investigated.

That figure is a remarkable 43.5 per cent of the total number (69) of reclaimed homes across the country.

Executive member for housing Kim Humphreys added: "Housing is clearly an important issue for the borough. Obviously, the measures we are taking now to combat fraud in all services across the borough, particularly in housing, are making sure that the people living in council flats are in fact the people they say they are."

Cllr Humphreys admitted that Southwark, the UK's largest social housing landlord, was perhaps an easy target. He said: "We must work with residents of Southwark to make sure that those who require any housing benefits are getting what they need and no more."

Cllr Paul Bates, the shadow spokesman for housing and regeneration, believes that the report only scratches the surface and urged the council to do more. "While it is good news that this level of fraud has been identified, it's still a matter of enormous concern that so many people have been getting benefits from Southwark Council which they do not deserve. I'm willing to bet that there are considerably more examples of benefit fraud out there which this council is doing next to nothing to identify and stamp out.

"There should also be a reinstatement of the regular and unannounced tenancy checks from housing officers going to council properties, to check that the person on the housing register is the person living in the property."

[Cov]

Interesting.


I believe all boroughs have routine checks for housing benefit fraud.
Not to forget the phone number for people to anonymously report fraud.

I remember when I was on housing benefit, once in a while (maybe once a year) a housing officer came, just to fill out a form. Before, I received a postcard saying at what time he would come on one of the next days.

It would be interesting to see a table of all borough of London which shows the number of reclaimed accommodations from the council.
Southwark must be on the top I guess.

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I remember years ago a friend from an estate agency refered me to a guy who was looking for someone who rents his flat for only £100.- per week. Of course it was dodgy but when I had a look at this flat I fell in love with it and went ahead. Was living there for three months or so until I had been made redundant and lost the job.
This situation was very unsecure as you don't know how long you can stay until either the person who sublets changes plans out of the blue or the council finds out somehow ... either way, you'd end up on the street quicker than you realize.
How this guy got this flat I don't know, he must have had a medical condition I think, but he was fit like a trainer and when he collected the rent with his car he didn't look handicaped at all.
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When I lived later in a flat in St John's Wood, I received housing benefit too for a while and because what the council paid was not quite enough for the landlord, he decided one day to let out the spare room in my flat with my agreement. In return he promised to pay the bills because they are not covered by housing benefit.

I wonder how someone who is unemployed is supposed to pay electricity, gas & water ? The job seeker's allowance is just about enough to buy food. That I will never understand.

The bad end of this true life experience is that my landlord received the rent from the council and the cash from the other tenant for a long time and in fact never paid any bills. Yeah, I have been screwed forwards & backwards.

Since I have a job and live somewhere else, I would pay good money if someone could give him a lesson for life ... you know what I mean.
I know that's not nice, but I need to do this.

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Coming back to the report, considering the number of people in need for support and the long waiting list (!), illegal claims must be eradicated but I find it hard to imagine that there is much space for fraud anyway. The conditions to qualify for support are so very hard that only the extreme cases are supported - hell, even people who are in need don't get any support because of a lack of housing.

At this point I'd like to highlight that nobody in this world has managed to convince me yet for why we have people living in luxury while others live in places unworthy for human beings.
Don't come with this bullshit like that in our society those who perform better get more ... that's not how our pathetic society works anyway.

Well, better don't get me started ...
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[Bluey]

If Southwark council are typical of other councils, then there are potentially thousands of social housing properties that were fraudulently applied for or have broken the terms of renting by being sublet by the tenants where it is no longer their primary residence.

Tenancy fraud involves obtaining properties by deception (for example, individuals claiming to be homeless when they already own a property or are already living at an address), or continuing to claim to be living at a property when they have moved out and sublet it.

However, Southwark do not believe their problems are representative of other areas.

The audit that uncovered this, also uncovered similar dodgy practices across the country.

This included a woman who was offered social housing in Camden after presenting herself as homeless who was later found to own a property somewhere else and who had faked her local connection, as she lived in another borough at the time.

It also uncovered people who applied to purchase their council properties under Right to Buy who had actually bought other properties in the past under that scheme. Essentially, once they moved into private ownership, the owners should not have been eligible for renting in the social sector again but had hidden this when they applied.

A friend of a friend had a social housing property, genuinely obtained at the time, but who later sublet it when she bought her own property (not at profit, just at the actual rental cost, in case she wanted to move back) but the tenant snitched and the housing association took it back.

[hugheskevi]

It would be interesting to hear what happens to the people deliberating committing fraud.

I recall a recent case in the national news where someone claimed a large amount of disability benefit (something like more than £50,000 over the course of maybe 10 years). It was completely fraudulent.

The case went to course, the guy was found guilty.

His punishment was to repay the money at something like £2 a week, and if he was lucky enough to survive until he was 120, the (interest-free) debt would be paid off.

It didn't really strike me as much of a deterrant to commit fraud really - I may be wrong but it seems that if you are minded to commit fraud to get govt. payouts, there is every chance you will get away with it, and even if you do do get caught the consequences are not going to be anything much to worry about.

[Cov]

The Department for Work and Pensions (DWP) takes benefit theft very seriously. Although the vast majority of people who claim benefits are honest, those who commit benefit theft are picking the pockets of law-abiding taxpayers. In 2006-07 benefit thieves stole an estimated £700 million from public funds, that's why we are determined to stop benefit thieves.

All benefit theft is a crime and those found breaking the law face a criminal record. NO IFS, NO BUTS.

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What is benefit theft?

If you deliberately fail to report a change in your personal circumstances or are dishonest about information supporting your claim, you are treated as committing benefit theft. If you're prosecuted for benefit theft you could be fined or get a prison sentence. In all cases, you will have to pay the money back.

Examples of benefit theft

Benefit fraud is a criminal offence which may be committed in several ways, such as:

- not reporting you are now living with a partner

- not reporting you are receiving other benefits

- not reporting any savings or not reporting the right amount

- claiming for children who have left home

- not reporting you have started work, or started to earn money

- not reporting you have inherited money

- not reporting you are going abroad, living abroad, or have changed address

Overpayment of benefits

If you've been paid too much benefit this is called an overpayment. It's treated as benefit theft if you have:

- deliberately withheld information from your benefits office
- given false information that may lead to you receiving benefits you're not entitled to

Reporting changes in circumstances

You need to tell your benefits office about any changes in circumstances as soon as possible. They'll tell you if it affects your benefit.

Some changes may mean you're entitled to new or additional benefits, but others could mean you no longer qualify for benefit, or should receive a lower amount. You may be overpaid if the benefits office doesn't know about your changed circumstances.

If you deliberately fail to report a change in your personal circumstances you are treated as committing benefit theft. You will have to pay the money back and if you're prosecuted for benefit theft - you could be fined or get a prison sentence.

What happens after an investigation

Once officers have collected facts about your case a decision will be made on whether or not to take further action. If there’s evidence that you’re committing benefit theft, any of the following may happen:

- you may be prosecuted
- you may be asked to pay a penalty as an alternative to prosecution
- your benefit may be reduced or withdrawn
- you will be asked to repay the overpaid benefit

Loss of Benefits

If you’re convicted of two separate benefit theft offences, you may find your entitlement to certain benefits is reduced or withdrawn for a disqualification period.

This is known as the 'Two Strikes' sanction, and you'll be notified if it's applied to your benefits.
Sanctionable benefits
Benefits which can be withdrawn or reduced in this way are called sanctionable benefits, and include:

- Income Support
- Jobseeker's Allowance
- Incapacity Benefit
- Housing Benefit

[hugheskevi]

Fraud and error accounts for about £2.7 billion of expenditure - amusingly £4 million was lost in overpayments to people in prison (who'd have thought it eh, criminals committing fraud...or maybe that was part of 'error')

Another £1 billion was overpaid on Tax Credits, not counted in the £2.7 billion as Tax Credits are with HMRC.

DWP hasn't had its accounts signed off for 19 years now due to the high levels of fraud and error. Mind you, nor has the EU for the last 14 years, so they are in good company!

The only good news really is that the £2.7billion represents only 2.1% of total spend...one may argue that the fact £2.7billion is such a tiny percentage suggests total spend is far too high, but that's another matter.