Agenda item

REPORT OF THE SHARED ANTI-FRAUD SERVICE (SAFS)

A report providing details of the work undertaken by the Council and the Shared Anti-Fraud Service to protect the Council against the threat of fraud and the delivery of the Council’s Anti-Fraud Action Plan for 2024/25.

RESOLVED: That the Committee noted:

(1)  The activity undertaken by the Shared Anti-Fraud Service to deliver the 2024/2025 Anti-Fraud Plan for the Council.

(2)  All Anti-fraud activity undertaken by Officers and SAFS to protect the Council against fraud in 2024/25.

REASON FOR DECISION: To provide details of the work undertaken by the Council and the Shared Anti-Fraud Service (SAFS) to protect the Council against the risk of fraud and delivery of the Council’s Anti-Fraud Plan for 2024/2025.

Audio recording - 4 minutes 36 seconds

The Counter Fraud Manager Presented the Report Entitled ‘SAFS Annual Report 2024/25’:

·       That since publication a correction had been made, where case study 3 referenced an overpayment, it should read sums due for payment.

·       The volume of referrals were mainly regarding Council tax and Housing benefits, this was expected.

·       Not all referrals were made to a case, where risk was low the Shared Anti Fraud Service (SAFS) used a compliance method an example was shown in case study 3.

·       Of the 19 cases closed in the year 2024/25 10 identified recoverable losses to the sum of £43,000.

·       Housing allocation was an area of concern both nationally and regionally and of 79 applications 12 were removed from the list following a review of data from the National Fraud Initiative (NFI), this had a potential fraud value of £51,000.

·       In the year 2024/25 3 houses were reclaimed and given back to families in genuine need of social housing, by moving these families out of temporary accommodation a saving of £84,000 was made.

·       Case study 2 was an example of where a resident who falsely made a housing application pleaded guilty at court following an investigation., In the year 2024/25 SAFS found 24 cases of false claims for housing.

·       SAFS revealed evidence that a business had made false claims for Grants as well as a reduction in its business rates liability. The Grant application had not been successful, but the business was found to have avoided paying the correct business rates between 2021 and 2024 totalling £16k and has been invoiced for this sum.

·       SAFS also managed the Council Tax framework and showed 686 accounts falsely claiming single person discount and identified £263k liability.

The following Members asked questions:

·       Councillor Ruth Brown

·       Councillor Ralph Muncer

·       Councillor Paul Ward

·       Councillor Vijaiya Poopalasingham

·       Independent Member  John Cannon

In response to questions, the Counter Fraud Manager advised that:

·       Table 4 shows, that the volume of fraud referrals, or allegations of fraud, had fluctuated during the last decade, but remained within a bracket of between 100 and 140 per annum which was comparable to other SAFS Partners of a similar size/geography/demographic.

·       North Herts Council had a different demographic to the rest of Hertfordshire, so it was not easy to compare locally but the report outlined the benefits of SAFS.

·       The Council took part in the International Fraud Awareness Week in November 2024 along with other Council’s across the region.

·       SAFS tried to avoid prosecution where possible due to the cost to the Council as this was deemed not in the public interest.

·       Private prosecution was not an issue for SAFS as it was not common practice but it did maintain as relationship with the Crown Prosecution Service from a case in 2015.

·       SAFS used its LinkedIn to promote cases won and shared these with the Councils Communication team to further promote.

·       SAFS did promotion work with Colleges and Universities to raise awareness of Anti-Fraud work.

In response to questions, the Director - Resources advised that over time SAFS paid for itself not only through money saved and reclaimed but through the social benefit of the right family being in social housing.

Councillor Vijaiya Poopalasingham proposed and Councillor Paul Ward seconded.

As part of the debate Councillor Ralph Muncer thanked the Counter Fraud Manager for SAFS work in preventing fraud as well as the quality of the report.

Having been proposed and seconded and, following a vote, it was:

RESOLVED: That the Committee noted:

(1)   The activity undertaken by the Shared Anti-Fraud Service to deliver the 2024/2025 Anti-Fraud Plan for the Council.

(2)   All Anti-fraud activity undertaken by Officers and SAFS to protect the Council against fraud in 2024/25.

REASON FOR DECISION: To provide details of the work undertaken by the Council and the Shared Anti-Fraud Service (SAFS) to protect the Council against the risk of fraud and delivery of the Council’s Anti-Fraud Plan for 2024/2025.