Councils winning battle against housing grants fraud

6 Sep 01
Local authorities have successfully reduced fraud among private landlords applying for grants to renovate homes.

07 September 2001

There is greater awareness of fraud and enhanced vigilance now that councils have had time to 'bed down' their grant administration systems, says a study for the Department of Transport, Local Government and the Regions, published on September 4.

Consultants DTZ Pieda interviewed staff at 43 English authorities who are responsible for administering private sector housing renewal and disabled facilities grants. The findings, which were extrapolated to produce national results, will be studied by an inter-ministerial group on welfare fraud.

In 1998/99, English councils took action to reclaim an estimated £450,000 worth of mainly renovation grants (equivalent to 0.13% of total expenditure under the two programmes). There were an estimated 42 cases of proven fraud (0.04% of applicants who received grants).

In 1995/96, there were more than 100 cases of fraud under the programmes, involving over £1m. Legislation passed in 1996 closed some loopholes.

A reduction in the overall number of renovation grants (worth an average of £9,200) and a move towards smaller home repair assistance grants (with an average value of £1,000) has reduced the incentive for fraud.

However, if cases where councils have a high or slight suspicion of fraud are taken into account, the report estimates that 3.3% of total spending under the two programmes is still at risk.


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