Fraudsters prosecuted, 42 council homes recovered, and hundreds of fraudulent claims stopped as Council steps up fight against economic crime

Sandwell Council’s Counter Fraud Unit has protected more than £4.3 million of public funds during 2025/26 through a combination of investigations, prosecutions, prevention work and proactive fraud detection.

The figures, published in the Council’s annual Counter Fraud Report, reveal another successful year in tackling fraud across a range of services including housing, council tax, direct payments and blue badge misuse.

During the year, the Counter Fraud Unit completed 281 investigations, secured 29 prosecutions, recovered 42 council properties, prevented 10 fraudulent Right to Buy purchases, cancelled 41 housing applications and issued 27 warning letters for blue badge misuse.

The achievements come at a time when fraud continues to represent a growing national threat. According to the National Crime Agency’s National Strategic Assessment, fraud now accounts for 41 per cent of all crime in England and Wales.

The Council’s work has resulted in significant savings and protections for residents and taxpayers, including:

• £3.29 million notional value from recovering 42 council properties
• £699,700 in prevented Right to Buy discounts
• £175,603 linked to fraudulent housing applications stopped before allocation
• £96,473 from Council Tax Single Person Discount fraud identified and removed
• £44,495 in direct payment fraud detected
• £31,078 in Council Tax Reduction Scheme fraud uncovered
• £62,051 in housing benefit and related overpayments identified

In addition, the Council removed fraudulent Single Person Discounts worth almost £100,000 and issued 177 financial penalties to residents found to have made incorrect claims.

Councillor Gary Dale, Cabinet Member for Finance and Corporate Services and Statutory Deputy Leader, said:

“Every pound lost to fraud is a pound that cannot be spent on vital services for our residents. These results demonstrate our commitment to protecting public money, supporting honest residents and ensuring fraudsters are held accountable for their actions.”

“The work undertaken by our Counter Fraud Unit has protected millions of pounds during the past year while helping ensure council homes, benefits and services are available to those who genuinely need them. We will continue to take a zero-tolerance approach to fraud in all its forms.”

Councillor Owen Nelson, Chair of Sandwell Council’s Audit and Risk Assurance Committee, said:

“Fraud diverts resources away from the services our residents rely on and undermines public confidence in how public money is spent. The work of the Counter Fraud Unit plays a vital role in safeguarding council funds and ensuring they are used for their intended purpose.”

“These results demonstrate the importance of strong governance, effective scrutiny and proactive investigation. Recovering homes, preventing fraudulent claims and securing successful prosecutions sends a clear message that fraud against the Council will not be tolerated.”

Protecting Social Housing

Housing fraud remains one of the most significant risks facing local authorities.

The Counter Fraud Unit works closely with housing services to ensure council homes go to residents who genuinely need them. Every housing application is screened and verified, helping to identify false information and fraudulent claims before properties are allocated.

The recovery of 42 council homes means those properties can now be allocated to families and individuals on Sandwell’s housing waiting list.

Tackling Right to Buy Fraud

Following national changes to Right to Buy discounts in late 2024, the Council experienced a surge in applications.

Enhanced checks and anti-money laundering procedures identified a number of suspicious cases which resulted in 10 Right to Buy applications being cancelled during the year, preventing discounts worth almost £700,000 from being awarded incorrectly.

Successful Prosecutions

The Counter Fraud Unit continues to pursue offenders through the courts where appropriate.

One investigation uncovered false information provided to obtain direct payments intended to fund care support. More than £27,000 was paid out fraudulently and used for purposes unrelated to care needs. The offender received a suspended custodial sentence, and proceedings have been launched under the Proceeds of Crime Act to recover the money.

The Council also successfully prosecuted an individual who repeatedly misused a relative’s blue badge to park illegally while at work. The offender was fined and ordered to pay costs, and the blue badge was subsequently cancelled.

National Recognition and Partnership Working

Sandwell Council continues to work alongside national and regional partners including the National Anti-Fraud Network (NAFN), the National Crime Agency, the Department for Work and Pensions and other local authorities to identify emerging fraud threats and share intelligence.

The Council also provides counter fraud support services to both West Midlands Fire Service and Sandwell Children’s Trust.