Big success of single person council tax sweep

Almost 2,000 people have been found to be wrongly claiming a discount on their Council Tax - recouping Cheshire East Council £500,000 per year.

The authority contacted residents who claim a single person discount of 25 percent after information collated during an audit suggested at least one other adult was living at the address.

Those found to have been wrongly claiming the discount were issued with a bill for the outstanding amount backdated to April 1 2010 – an average of £250 per person.

The audit, which cost the Council £80,000, will result in £500,000 extra income every year.

It was carried out by specialist company Northgate which worked with credit information group Experian to check personal details against a national database.

Claimants were asked to confirm whether they still lived alone, and if not, to give the details of the additional people living at their address. Those who failed to respond were issued with a backdated bill.

Councillor Wesley Fitzgerald, Leader of the Council and Portfolio Holder for Resources, said: “The single person discount system is designed for those who genuinely need extra help. Sadly, there are a few people who are prepared to abuse it.

“Withdrawing the discount from 2,000 fraudulent claimants will generate an additional £500,000 every year which can be invested in essential services."

The government puts this council tax discount fraud at a national total of £50m.

But the Audit Commission has estimated that up to 6% of claims for the council tax discount are fraudulent. That could mean 400,000 of the 7.25m single-households are bogus. Moves to stamp out false claims for the single person's discount are expected to save the public purse up to £100m a year.