Nottingham city council is to crack down on those claiming a single person discount on their council tax bill when they do not live alone.
The local authority say they expect to identify 4,000 households where the discount is claimed improperly. The initiative could generate an additional £1.1m of income for the city council next year.
About 130,000 households in Nottingham pay council tax. The average charge per household is £1,108 and a single person discount will save £277 a year. Currently, more than 56,000 households claim a single person discount - an astonishing figure, not far short of half the total.
Previously, the city council has written to residents asking them to inform the authority if their status has changed, but there is a suspicion that some people did not complete the form honestly.
The council has now commissioned Experian and Northgate to review and update council tax accounts to identify those who are receiving discounts who are not entitled to them.
The council will pay the company £37.50 for each discount removed and it anticipates the total scheme will cost £150,000. The council says the project will not only boost income but by using an outside company it will be cheaper and more effective.
The firm has access to databases which the council does not use, such as credit reference information, which may reveal whether a resident is married or cohabiting. Where evidence emerges a person may have not properly declared their status they will be contacted directly.
Currently, the council is not planning to backdate charges (why not?) but will collect the full amount owed in the next financial year, which begins on April 1, 2010.
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