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The report sets out a summary of the counter fraud activity undertaken in 2025-26, including both proactive and reactive work across a range of fraud risks and also fulfils the requirements of the Local Government Transparency Code 2015, which requires local authorities to publish details of their counter-fraud activity.

Darren Armstrong, Deputy Director Organisational Assurance & Resilience, introduced a report from the Corporate Director Finance & Resources presenting the Council’s Annual Counter Fraud Report for 2025-26, which summarised the counter fraud activity undertaken across multiple fraud types (including internal fraud, housing tenancy fraud, external fraud and proactive work) and had been designed to support the Committee in obtaining assurance on the robustness of the Council’s counter fraud arrangements.  The report also fulfilled the requirements of the Local Government Transparency Code 2015, which required local authorities to publish details of their counter-fraud activity.

In considering the report the following key issues were noted:

·            The high priority identified in terms of counter fraud activity given the inherent and significant level of risk posed by fraud to the Council, with the Council having established a well developed approach towards tackling fraud and corruption based on a combination of reactive and proactive prevention and detection activities in line with best practice.

·            The Annual Counter Fraud Plan had been designed to ensure that resources were being effectively targeted and deployed to prevent and detect fraud, underpinned by the Council’s Anti-Fraud and Bribery & Whistleblowing policies.  A summary of all reactive and proactive counter fraud activity undertaken in 2025-26 had been detailed within the Annual Counter Fraud Report attached as Appendix 1 to the report.

·            The broad programme of counter fraud activity undertaken during 2025–26 which had included reactive investigations as well as proactive preventative work across all major fraud risk areas involving 34 internal fraud referrals which members were advised had involved 31 cases concluded;152 housing fraud cases, with 133 cases closed and 40 external fraud referrals, with 61 cases concluded.

·            Across these areas, fraud and/or irregularity had been identified in a number of cases, with outcomes ranging from recovery of assets and prevention of financial loss through to strengthening of controls and referral for further action.  Members were advised that tenancy and housing fraud remained one of the Council’s highest priority fraud risks due to its direct financial impact and the importance of ensuring that social housing continued to be allocated fairly and to those in genuine need. During 2025–26, the Counter Fraud and Investigation activity had delivered strong outcomes in this area, including the conclusion of 22 fraudulent housing cases, resulting in the recovery or protection of properties and a notional financial benefit of approximately £1.45 million.  This work had included the recovery of properties where tenants were no longer in occupation, prevention of fraudulent succession claims and identification of unauthorised occupants.  In response to emerging risks, members were advised the service had also strengthened preventative controls, including introduction of enhanced verification for Right to Buy applications, implementation of a structured verification process for tenancy succession applications and increased use of data and intelligence tools to identify anomalies and improve assurance with the approach not only felt to support the recovery of properties but also strengthen the integrity of the housing allocation processes, reducing the risk of future fraud.

·            Whilst referrals in relation to external  ...  view the full minutes text for item 8

The report sets out a summary of the counter fraud activity undertaken in 2024-25 and fulfils the requirements of the Local Government Transparency Code 2015, which requires local authorities to publish details of their counter-fraud activity.

Darren Armstrong, Deputy Director Organisational Assurance & Resilience, introduced a report from the Corporate Director Finance & Resources presenting the Council’s Annual Counter Fraud Report for 2024-25, which summarised the counter fraud activity undertaken across multiple fraud types (including internal fraud, housing tenancy fraud, external fraud and proactive work) and had been designed to support the Committee in obtaining assurance on the robustness of the Council’s counter fraud arrangements.  The report also fulfilled the requirements of the Local Government Transparency Code 2015, which required local authorities to publish details of their counter-fraud activity.

In considering the report the following key issues were noted:

·       The high priority identified in terms of counter fraud activity given the inherent and significant level of risk posed by fraud to the Council, with the Council having established a well developed approach towards tackling fraud and corruption based on a combination of reactive and proactive prevention and detection activities in line with best practice.

·       The Annual Counter Fraud Plan had been designed to ensure that resources were being effectively targeted and deployed to prevent and detect fraud, underpinned by the Council’s Anti-Fraud and Bribery & Whistleblowing policies.  A summary of all reactive and proactive counter fraud activity undertaken in 2024-25 had been detailed within the Annual Counter Fraud Report attached as Appendix 1 to the report.

• The outline of the Counter Fraud Plan, which had been included as Appendix 2 of the report, which summarised how resources would be deployed and targeted to achieve the aims and objectives within the Council’s anti-fraud policies developed based on previous outcomes, stakeholder engagement, known and emerging risks.  Members were advised this also included the Fraud Awareness Plan which summarised the activities being undertaken to raise awareness of fraud risks and help ensure that the Council’s assets were adequately protected.

The Chair then invited the Committee to raise questions on the report, with the responses summarised as follows:

·       Noting the continued level of referrals relating to Blue Badge Fraud, the Committee sought further details on the lobbying being undertaken in support of the introduction of a virtual blue badge scheme which it was felt would make the badges less vulnerable to theft and fraudulent use.  In response, members were reminded that the counter fraud activity was focussed on the misuse of blue badges rather than administration of the system which would be a matter for the Healthy Streets and Parking Team to pursue.  Whilst aware of work being undertaken in terms of the implementation of a virtual scheme it was noted that any more detailed update would need to be sought from the Healthy Streets and Parking Team.

As no further comments were raised the Chair thanked Darren Armstrong and his team for their hard work in relation to the ongoing delivery of Brent’s Counter Fraud Activity and it was RESOLVED to note the report.