To receive a report on Housing Fraud/Illegal Subletting.
Minutes:
RECEIVED the report of Neil Wightman (Director of Housing Services (residents).
Neil Wightman presented this item; the short report provided introduced the work undertaken around housing fraud. Council housing fraud affects the availability and quality of housing available. It is important that fraud is both tackled and taken very seriously. Officers undertake a lot of detailed verifications and investigations pre and during applications. Fraud can also come to light post application.
The report details the main areas of fraud; Housing Application Fraud (involving applications to the housing register or homeless applications); Occupancy and Subletting fraud. Council tenants do not have permission to sublet, so if this occurs and they no longer reside there as their main primary home then this is a breach of their tenancy; Succession Fraud (this tends to occur in larger properties) and Right To Buy Fraud.
Section 4 4 provided some examples of the work of the Counter Fraud Team. They undertake both preventative and proactive work. However. most of their work is reactive. Most fraud cases are from referrals e.g., from employees, councilors, contractors, and residents on suspected fraud cases.
Section 4 provided some information around cases where there has been an established outcome and some examples of case studies are also provided in the report (section 5), highlighting some of the powers that the counter Fraud team have.
Observations were then made, and questions taken:
A general observation on the report was that it contains no details on prosecutions which would have been helpful to demonstrate impact. It would also be helpful to provide comparison with the rest of London or the country if data is available. Neil Wightman to provide clarification of whether there is benchmarking undertaken. Action Neil Wightman
Neil provided clarification on the table in the report the asterisks indicated notional recovery figures per case. The table is successful cases only, however many other cases are being investigated. Some cases will take a lot longer, dependent on many factors such as the response of the person being investigated, the type of case, and intelligence received. The number of cases will fluctuate.
In response to a query on the difficulty of seceding with a case where fraud is suspected, members were advised that the burden of proof is high, there will often be conflicting evidence and a judgement must be reached. The more complex cases can go on for long time.
Following safety concerns raised on intelligence from the public and possible repercussion it was confirmed that the intelligence is used anonymously. It was not expected that those reporting completed a witness statement. This information is the start of a formal investigation. Neil Wightman to confirm whether people are aware when they report fraud that it is anonymous. Action Neil Wightman
It was clarified that it is in all tenancies for both Council and Housing Association that tenants cannot sublet their entire property.
Neil Wightman agreed to provide more details on preventative work following a request. Action Neil Wightman
It was confirmed there is one team the counter fraud team. They deal with the more difficult cases. The actual number of staff on this team is to be confirmed. Action Neil Wightman
The Housing Teams generally will deal with cases where they are investigating, particularly in homelessness. Homelessness and housing applications are statutory, and it is necessary to provide correct evidence which will be examined and needs to be verified. The fraud tends to come at a later stage and would then be investigated by the counter Fraud team.
It was queried for fraud caseloads how many cases on average result in an established outcome. Neil Wightman agreed to provide. Action Neil Wightman
In response to a query on prosecutions the panel was advised that on any fraud case or possession action there will be a legal judgement on whether the threshold has been met. If this is met the council will always prosecute. The sentence given would typically be fines or barring from the housing register for a period of time. These cases tend to be civil matter not criminal in general. A rent repayment order is possible where monies have been accumulated illegally.
Rogue landlords were also discussed and the dangers around the safety of the property where properties have been sublet illegally.
Following a query of succession fraud, it was confirmed that if a son/daughter has been living with their parents for a long while and caring for them will have a legal right to succeed in the tenancy. It may be more complicated where the relative is more distant or a carer this would be looked at under a discretionary policy on the right to succeed. The right is not the right to the home it is the right to housing. Often the home is larger than is needed, so the family will need to be allocated a right sized home.
Supporting documents: