£385k overpaid in benefits
Crawley Borough Council has overpaid more than £385,000 in council tax and housing benefits during the past financial year.
A report due to go before the audit and governance committee at the town hall tonight (Wednesday March 13), states that the fraud inspection team has recorded overpayments of £385,016 on cases dealt with during 2012/13.
The report added that, on average, the council recovers around 65-70 per cent of benefit overpayments raised.
Between November 24 2012 and February 14, 90 cases were closed by the team, with 15 being passed to the Department for Work and Pensions for further investigation.
In 55 of the cases no evidence of fraud was discovered, while in four cases fraud was identified and a sanction – such as a caution, financial penalty or prosecution – was imposed.
Among the cases of housing fraud investigated by the team were instances of sub-letting, non-occupation and false succession applications.
Some 112 cases were under investigation as of February 14.
Regarding the recovery rate of overpayments, a council spokesman said: “The Government has an expectation that authorities will recover 60 per cent of overpayments.
“The Government provides subsidy of 40 per cent towards the cost of overpayments to recognise that expectation.
“The fact that we recover more means that the council makes a surplus for the taxpayer.”
Reasons for non-recovery included the debtor dying; being unable to trace the person; and it being uneconomic to pursue the debt.
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Sunday 19 May 2013
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