Council Tax fraud warning as 1 in 6 Brits admit to dishonestly claiming discount

Council Tax fraud warning as 1 in 6 Brits admit to dishonestly claiming discount

New research highlights an alarming trend in individuals dishonestly claiming the Single Person Discount

Portrait of a senior man in his 70s checking his council tax bill at home in his office. He has a worried expression and touches his face with his hand while looking at the bill. Focus on the tax bill with the man's face defocused beyond.
People trying to avoid paying the full sum of their Council Tax could face legal action(Image: coldsnowstorm via Getty Images)

Cifas, the nation’s top fraud prevention organisation, has appealed to the public about the serious implications of Council Tax fraud amid escalating expenses.

This call for awareness follows startling statistics showing a growing number of people falsely claiming the Single Person Discount.

This discount offers a 25 per cent reduction on Council Tax for homes with only one adult occupant. Cifas’ recent survey among 2,000 adults in the UK revealed an alarming figure with 16 per cent of participants either having claimed the discount falsely themselves or knowing someone who did in the past year.

Fraudulent claims for the Single Person Discount are listed as one of the most prevalent forms of ‘first-party fraud’, according to the Fraud Behaviours Survey from Cifas.

This type of dishonesty stands alongside others, such as embellishing CV qualifications reported by 18 per cent of respondents and retail non-delivery fraud at 19 per cent.

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The study came ahead of ‘National Honesty Day’ on April 30, leading the organisation to urge individuals to conduct themselves ethically. Cifas’s Director of Public Sector, Rachael Tiffen commented: “First-party fraud isn’t a harmless crime – it’s harmful.”

UK one pound coins placed on a Council Tax Bill
Most people do not consider falsely claiming the single person’s discount as Council Tax fraud(Image: Getty Images)

She continued: “At a time when many households are feeling the squeeze of rising council tax bills, it’s more important than ever to recognise that council tax fraud, including false claims for Single Person Discount, puts vital local services at risk. It can also result in serious consequences for those individuals who act dishonestly.”

The council has voiced its concern regarding fraud, saying: “Fraud against the public purse diverts funding away from the very communities that need it most. We understand times are tough, and that’s why it’s so important to support residents during challenging times without resorting to fraud. Ensuring people can report suspected fraud quickly and anonymously remains crucial.”

Council Tax has risen by 5 per cent in Manchester this year, while many are continuing to struggle with high food and energy bills eating into their disposable income.

A recent study revealed a surprising tolerance for deceit, with almost half (48%) of participants deeming first party fraud as ‘reasonable’, reports the Daily Record. The full results can be accessed here.

The Cifas study also found that:

  • 9% of respondents deemed falsely claiming the Single Person Discount as ‘reasonable’
  • 13% mistakenly believed this type of fraud was legal, a 1% increase from 2023
  • 28% of 25-34-year-olds were the most likely to have dishonestly claimed the discount

Guidance from Citizens Advice for people who are struggling to pay their Council Tax explains what you should do if you cannot pay. It states: “Contact your council and explain your situation. Don’t just stop paying.

“Ask them if they’ll let you pay your council tax in smaller amounts. You’ll probably be asked to commit to paying a regular amount each month. If you’re not sure how much you can afford, you can use a budgeting tool or talk to a specialist adviser at Citizens Advice.

“If these payments mean you won’t be able to afford essential costs such as your rent or mortgage, tell the council. If you’re on a low income, you might be able to get a reduction on your council tax bill. You can read more about getting help with your Council Tax.”

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