CASH-strapped councils have been fleeced out of more than half-a-million pounds over the last 18 months by people wrongly claiming benefits.

Whether people deliberately made fraudulent claims for housing and council tax benefit, or simply forgot to notify a change in circumstances, councils in Worcester, Wychavon and Malvern are losing out on funds that could help keep frontline services and back office functions running without having to make drastic cuts or changes to the way they operate.

Worryingly, the amount overpaid in the district of Wychavon over the last six months has already topped last financial year’s figure by more than £13,000.

However, efforts are being made to catch people committing housing and council tax benefit fraud – there have been more 201 cautions and prosecutions over the last 18 months – especially as belts on budgets are being tightened.

Worcester City Council is currently seeking to take £2.3 million out of its budget by 2014; Wychavon District Council £1.8 million over the next two years; and Malvern Hills District Council about £1.3 million over the next two years as a result of reduced funding from the Government.

Deb Goldfinch, manager of the shared service which handles housing and council tax payments on behalf the three district councils, said: “Our benefits service is about providing people with the money they are entitled to when they need it most, but this relies on people advising us when they have a change in their circumstances.

“While there are instances where people may simply have overlooked advising us about a change, there are cases where people seek to deliberately defraud the system and this is taken very seriously.

"Where we have intelligence that suggests a fraudulent claim has occurred we will conduct investigations and take further action.

“These investigations are essential in protecting the public purse; this is especially important in times when public bodies have less money to provide essential services.”

If anyone suspects that someone is claiming benefits who should not be, they can call, in confidence, 01386 565280 or e-mail investigations@swrbss.org