Cabinet:

1.     Approved in principle Havering Council joining the London Counter Fraud Hub.

2.     Delegated authority to the Council’s Chief Financial Officer (s151) to enter into the contract following consultation with the Director of Law and Governance

The report was presented to Cabinet, highlighting the potential benefits of Havering Council joining the London Counter Fraud Hub.  The Hub is supplied by CIPFA, in partnership with BAE systems with Councils and third parties providing data to be analysed for fraud using advanced data analytics.  Councils and third parties will supply their data into the hub and will then receive fraud alerts, delivered through a cloud-based case management system, so that they can be investigated. The more Local Authorities put in their data, the more effective the Hub will be at discovering fraud.

Testing was carried out by 4 pilot authorities, Camden, Ealing, Islington, and Croydon. The results suggest that if all 33 Boroughs were to sign up, in the first year of operation, London would save a net £15m (worst case) to £30m (best case) and recover circa. 1,500 council homes that are currently illegally sub-let. The Hub looks for fraud in council tax single person discount, business rates, and housing. This range will expand once the Hub is up and running, and will be subject to additional costs.

To make the arrangement commercially viable, 26 of the 33 local authorities in London need to join. It is anticipated that the hub will expand over time to include authorities bordering London, housing associations, and other public sector bodies. 

The London Counter Fraud Hub will provide greater opportunities for Havering Council to identify fraudulent activity. The ability to match data with other London Boroughs will give the Council a greater opportunity to identify those individuals committing fraud in multiple Boroughs. It will also ensure the Borough is getting ahead and will be reviewed annually.

There is a slight concern that Essex Districts may not become involved but it is hoped they will be as that will increase the potential even further.  Following discussion,

Cabinet:

1.     Approved in principle Havering Council joining the London Counter Fraud Hub.

2.     Delegated authority to the Council’s Chief Financial Officer (s151) to enter into the contract following consultation with the Director of Law and Governance