More than £1.6m could be recouped from wrongful council tax discounts

Over 3,000 residents have been identified

More than £1.6 million could be recouped by councils across Devon if people who wrongly claimed single-person discount on their council tax cough up.

A total of 3,137 households across six of Devon’s district and borough councils have been identified as wrongly claiming the 25 per cent tax reduction.

The figures were revealed by Devon Assurance Partnership (DAP) as part of a report presented to Devon County Council’s audit committee.

The council does not collect the tax, but it constitues the largest part of the bill.

DAP said the exercise to identify wrongful claimants could lead to a “collectible revenue uplift of £1,640,463.” It has worked with the county and district councils to withdraw discounts from people who were ineligible.

“Single person discount fraud statistically remains the most prolific area for potential fraud and error in councils, and in addressing this issue in the way that [Devon] has, shows innovative thinking to ensure that public purse is protected,” DAP said.

It added that misuse of blue badges – parking permits for disabled residents – continues to be a “high frequency issue” for all councils.

DAP said that since April, it had received and processed 40 allegations of fraud and related offences against the council.

The auditor said it would provide a report outlining what types of fraud had occurred and actions taken in its end-of-year report.