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Thousands in Birmingham caught fiddling council tax benefit claims

Council leader Coun Mike Whitby said: “By reviewing our Council Tax database, we are ensuring that the citizens of Birmingham are getting value for money from their local authority.

“In the current economic climate it is essential that every penny we have is spent appropriately, and this programme of action is providing the safeguard that taxpayers are rightfully entitled to.

“We take the issue of incorrect entitlement seriously, however, we will continue to ensure that those entitled to such discounts continue to receive them.”

The review looked at all 160,000 discounts awarded by the council – equivalent to 38 per cent of all Birmingham households.

It often involved staff mounting surveillance operations to work out how many people were living in a property.

They discovered that a fifth of all applications were found to be false.

The worst offenders are likely to be prosecuted, but leniency will be shown where it is clear that applicants simply filled in forms incorrectly.

The inquiry follows research published this week by the Audit Commission which indicated that English local authorities are losing almost £90 million through incorrect council tax claims.

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