Council Tax fraud rises as more people falsely claim single person discount to save money

Daily Record

29-04-2025

Cifas, the UK's leading fraud prevention service, is urging people to consider consequences of Council Tax fraud when battling rising costs, as new research highlights an alarming trend in individuals dishonestly claiming the Single Person Discount. The Single Person Discount provides a 25 per cent reduction on Council Tax bills for households with only one adult. However, a recent Cifas survey of 2,000 UK adults found that one in 6 (16%) admitted to either falsely claiming the discount themselves or knowing someone who had done so in the past year. With rising Council Tax bills for most households across Scotland this year, Cifas' Fraud Behaviours Survey found that dishonestly claiming the Single Person Discount remains one of the 'most common' types of first-party fraud, alongside falsifying CV qualifications (18%) and retail non-delivery fraud (19%). The Cifas study also found that: Ahead of 'National Honesty Day' on April 30, Cifas is calling on people to act with integrity. Commenting on the findings, Rachael Tiffen, Director of Public Sector for Cifas, said: 'First-party fraud isn't a harmless crime - it's harmful. 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. '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.' Overall, nearly half (48%) of respondents said it was 'reasonable' to commit first party fraud. Discover more from the latest Cifas Fraud Behaviours Survey. You can view the full results here. Every local authority across Scotland has increased annual Council Tax bills for the 2025/26 financial year. The rises have been coupled with councils taking more rapid enforcement action, with West Dunbartonshire Council changing its policy earlier this month. Under its new rules, final Council Tax notices will no longer be issued to those who miss a payment, with only a single reminder notice sent, requiring action within 21 days. Anyone who fails to comply will lose their right to pay by instalments, meaning they will owe the full-year balance. The council will then make an application to the Sheriff Court to obtain a summary warrant, including a 10 per cent financial penalty, without any further notification. Advice Direct Scotland, which runs the free moneyadvice.scot service, said stricter recovery policies are likely to have the biggest impact on vulnerable people. The charity revealed last month some households were already facing Council Tax debts of up to £15,000, before the April increase. Advice Direct Scotland are urging Scots struggling to pay their Council Tax bills to get help, before missing any payments or increasing existing debt. The charity is also aware of other Scottish councils moving more quickly to recover debt, with those who are already struggling with energy and living costs most likely to be affected. Advice Direct Scotland is able to support anyone affected by Council Tax recovery changes, and can guide worried households through the process if they miss a payment. Council Tax arrears are a 'priority debt', meaning they should be addressed before other debts to avoid harsher enforcement measures, such as bank or wage arrestment. Councils can seize benefits and take other actions to recover the owed payments, risking the loss of homes or tenancy agreements if left unresolved. Advice Direct Scotland urges anyone who has missed a payment to contact their council immediately and request to pay in smaller amounts, rather than waiting to be contacted. John Baird, head of debt services at Advice Direct Scotland, said: 'Any changes to the recovery process for missed Council Tax payments are most likely to affect people who are already struggling to pay their bills. The removal of final notices and the swift progression to summary warrants, including a 10 per cent penalty, could have serious implications for some. 'It is understandable that councils want to streamline the recovery process, but it is crucial that they also consider the potential consequences for individuals facing financial hardship. 'These new systems may lead to increased stress and worry, particularly for those who are unable to pay within the 21-day window or negotiate alternative payment arrangements.' He added: 'We urge local authorities to ensure adequate support and clear communication is provided to residents, especially those in poverty, to help them navigate these changes and avoid severe penalties. Our team is here to help anyone who is struggling, regardless of their personal circumstances, so please reach out and contact us.' Experts are available at www.moneyadvice.scot or on 0808 196 2316.