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It is vital for good financial management that local authorities take a robust approach to fraud management – and be known to be doing this. Put into context, the Department for Work and Pensions (DWP) estimates that fraud costs each taxpayer £80 a year, a total of £2bn. This figure relates to losses from a combination of benefits, and evidence indicates that people committing fraud in one area are likely to be fraudulent in others. Lambeth has taken a holistic approach, and our benefits, right to buy, and insurance fraud, internal audit and anti-fraud services all work closely together. PricewaterhouseCoopers ratified that the council's internal control systems were good. We have just signed a contract with one of the top firms involved in cutting organisational fraud. Lambeth's fraud investigation team is one of the best in London. Last year, its members investigated 146 housing fraud referrals, recovering 35 properties, saving Lambeth £1.75m (Audit Commission estimate). And in an innovative partnership with the Metropolitan Police, Lambeth employs a seconded police officer, allowing us to investigate alleged fraud cases quickly and effectively. Our benefits service is running a DWP-sponsored pilot scheme, using ground-breaking voice risk analysis (VRA) technology. This measures fluctuations in the human voice, indicating levels of stress generated when attempting to deceive. Claimants contacting our call centre will be told the technology is being used, and asked questions to test their responses. Further evidence can be requested if a claim seems suspicious. While it is a tricky message – talking about addressing fraud means admitting that it takes place – the more important point is that reducing fraud requires constant vigilance to target resources to services and reduce costs to citizens. n Mike Suarez is director of finance at Lambeth LBC.

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FINANCE

Money Matters

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