Experian saves local authorities £23 million in council tax fraud

29-Sep-2009

Local authorities are using Experian's Residency Checker to save millions of pounds on fraudulent claims

A further £100 million a year could be saved

Experian has saved local authorities £23 million by preventing fraudulent single person discount claims on council tax.  Over 100 local authorities have used Experian’s Residency Checker service since 2006 to prevent thousands of fraudulent applications for the single person discount on council tax.

If Residency Checker was adopted by all 380 local authorities in the UK, Experian estimates that the saving to the tax payer could be in excess of £100 million a year .

The Audit Commission estimates that council taxpayers could be losing almost £2 million a week to fraudsters who claim the 25 per cent single person discount on their council tax. This amounts to around £90 million a year lost to fraud which can be prevented through better detection practices.

In its latest report “Protecting the Public Purse”, the Audit Commission states that fraud is likely to increase because of the recession and there is more that councils could do to minimise fraud opportunities. This includes assessing the effectiveness of their current arrangements, focusing on high-risk areas, setting clear targets and working with other organisations to reduce fraud and the harm it causes.

The Commission goes on to say that: “There are significant financial benefits to councils in using targeted resources to prevent and detect SPD fraud. Some authorities are already using or considering cost-effective and innovative means of reducing this type of fraud including the use of data matching, annual reviews focused on high risk SPD fraud cases and verification checks when the first application for SPD is made.”

Download the full press release here.