Millions recovered from fraudulent council tax claims (From Your Local Guardian)

Millions recovered from fraudulent council tax claims

7:20am Thursday 16th February 2012 in Croydon By Hannah Williamson

Millions recovered from fraudulent council tax claims

More than £2m has been recovered from fraudulent council tax claims in Croydon.

The money has been reinvested into front-line services after the council uncovered 8,000 incorrect claims for council tax discounts.

The false claims were discovered when the council asked Northgate Public Services to check 84,000 claims for single person's discount.

An initial review in 2009 found 5,120 incorrect claims from 52,000 checks, saving the borough £1.3 million.

A second investigation in July last year revealed a further 2,853 incorrect claims after 32,000 claims were checked, saving a further £800,000.

The £2.1 million saving was made as Northgate identify people who are claiming the 25 percent single person's discount, but cross-check against data linked to their address which suggests they may not be eligible.

Northgate can identify addresses with postal, phone or electoral records that suggest more than one person may be living at the address.

They then contact the person making the claim to discuss the irregularities on behalf of the council, saving valuable time and resources.

Croydon Council decided to reviews its SPD claims to determine if savings to taxpayers could be made.

Following the success of two consecutive SPD reviews, the council have extended the service contract for another four years.

Councillor Dudley Mead, the council's cabinet member for finance and resources said: "Northgate Public Services' understanding of our local procedures was first class.

"This has been our second review and the success of the project, we have generated over £2m in our council tax base, has meant we have now entered into a four year arrangement.

"The way the project is devised around risk and reward supported by a managed service has resulted in little involvement for Croydon while we benefit from the considerable financial improvements."