Cambridge reports on local benefit fraud

Keeping up with the Joneses might lie behind a 25 per cent leap in allegations of housing and benefit fraud in Cambridge.

Investigators don’t believe the massive hike was accompanied by an increase in actual fraud and think families might be getting more suspicious of their neighbours as the economic downturn bites.

John Frost, the head of revenue and benefit services at Cambridge City Council, said: “I don’t think there’s been an increase in attempts to defraud the system because we have made people very aware of the consequences.

“But there has been an increase in allegations and it may be that, in the economic downturn, they are being punished a bit more and wonder how come next door are having a good time.”

Mr Frost said the rise in reports might also be because of growing knowledge about how the benefits system works.

Official figures reveal there were 574 allegations of the city council being defrauded in the 12 months up to April, with the vast majority of these – 506 – relating to housing benefit. There were 66 allegations relating to council tax and two on housing matters.

In the previous year there were just 458 allegations.

Of the 574 allegations, 323 were investigated – a seven per cent increase on the previous year.

Mr Frost said: “Perceptions are important. People may have two or three cars and people might wonder how they are claiming benefits.

“Often they are not claiming benefits, but people perceive they are.”

Mr Frost said his team was noticing the amounts people were trying to defraud were now “quite substantial”.

In 2009/10 the total amount of overpaid benefits identified came to £212,046, and £28,343 of extra council tax income was detected.

The largest single fraud identified was £32,476, and while the claimants were not prosecuted due to ill health, their son was convicted of “knowingly allowing” the fraud.

In 2008/9, £151,562 of overpaid benefits was identified and no extra council tax income was found.

Two council tenancies were also recovered in the last financial year.