Brent recoups £800,000 in crackdown on single person council tax discount

The London Borough of Brent has recouped some £800,000 following a nine-month investigation into residents who were wrongly claiming the single person council tax discount.

Brent said more than 1,200 of its residents were found to be wrongly or fraudulently claiming the discount, which sees 25% taken off a council tax bill where there is only one adult resident in the property.

The council’s investigation was part of the National Fraud Initiative run by the Audit Commission, which matches data by comparing information held by each council tax office to the electoral register.

The Audit Commission had handed Brent a list of 3,665 people in May 2009 that it thought needed further investigation.

Taxpayers are required to contact a council to have the discount removed if their circumstances change, but many fail to do so. One resident was found to have been claiming the single person discount under false pretences for ten years.

Cllr Muhammad Butt, Brent’s lead member for resources, said: “Every measure will be taken to find those who attempt to defraud Brent and cheat those who are working hard to pay their bills. The recovered £800,000 can now be spent on delivering services to residents.”

Last month the Audit Commission called on councils to put the NFI – which identified £56m of fraudulently or wrongly received single person discount in 2008/09 – at the heart of their corporate arrangements for tackling fraud.

The spending watchdog also said housing associations should take part in future exercises to “show their commitment to fighting fraud”. The Tenant Services Authority should encourage all housing associations to participate, it added.