Benefits crackdown uncovers scams that cost us £30k per day
FRAUDSTERS have been caught stealing nearly £30,000 every day from the public purse by cheating the benefits system, claiming pensions for dead relatives or misusing ‘blue badges’.
A crackdown by Scottish authorities has found evidence of fraud and errors running into millions of pounds, at a time when councils are struggling to provide vital local services.
The most common offence involves abuse of the blue badge scheme to dodge parking charges, often by using a fake badge, one that belongs to a relative or by purchasing one on the black market.
Hundreds of Scots are also fraudulently claiming housing benefit, often by failing to declare income or by neglecting to inform officials they are living with a partner.
In some of the most sickening cases, relatives’ deaths go unreported and family members continue to draw the deceased’s public sector pension.
Ten foreign students were found claiming student support without a valid visa, and one worker earned £77,290 four years after their work visa expired.
In total, public sector watchdog Audit Scotland will today reveal that fraud and errors worth £10.5million were uncovered in 2012 to 2013 through public bodies sharing information as part of a National Fraud Initiative (NFI).
A further £5.5million has been recouped through investigations initiated during the previous NFI period in 2010-11.
There are fears the true cost could be far higher as cases may have slipped through the net, while the authorities have only
‘Dealt with very seriously’
recovered around two-thirds of any overpayments made.
Assistant Auditor General for Scotland Russell Frith said: ‘The outcomes of the NFI are a significant return to the public finances at a time when they continue to be under pressure.
‘ Fraud does not recognise organisational or geographic boundaries and the NFI has proven time and again that data-sharing is an effective and efficient way to quickly identify issues for further investigation.’
Tory local government spokesman Cameron Buchanan said: ‘Those who are found guilty of defrauding the public purse should be dealt with very seriously by the courts.
‘That is the only way to ensure this kind of behaviour is prevented in future.’
Audit Scotland involved 127 bodies i n the f raud probe, i ncluding councils, health boards, the Scottish Public Pensions Agency and the Student Awards Agency for Scotland.
A range of information was shared, including data on benef i t applicants, council tax records, immigration records, and disabled parking permits. It resulted in 2,876 blue badges being stopped or flagged for future checks. A total of 1,862 housing benefit payments were stopped or cut, 832 housing benefit frauds were identified and 92 prosecutions brought. Nearly 100 occupational pensions were stopped following the probe.
One benefits claimant was jailed for nine months after failing to inform officials about earnings from a partner. Another claimed £164,850 from one council while working in a different local authority area.
Audit Scotland said the recovery rate once overpayments have been identified is 66 per cent. Action is now under way to recover £4.5million of overpayments, across 3,851 cases.