Benefit fraud in Somerset has surged, partly due to Somerset Council’s failure to upgrade its outdated benefits processing systems. Established in April 2023, the council inherited legacy systems from its four predecessor district councils—Mendip, Sedgemoor, Somerset West & Taunton, and South Somerset—without promptly consolidating or modernizing them.
Efforts to streamline services through the council’s ongoing transformation programme have been criticized by auditors and opposition councillors for lacking urgency, potentially contributing to the increasing fraud risks.
The South West Audit Partnership (SWAP) recently released its annual fraud report, revealing a 38% increase in fraud referrals related to housing, revenue, and benefits services during the 2025/26 financial year. Referrals rose from 84 cases in the previous year to 116, covering various offenses including fraudulent claims and misuse of single person discounts on council tax.
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Cllr. Tim Kerley (Lib Dem, Somerton) expressed concern over the rise, questioning whether Somerset was experiencing a unique spike or following regional trends. SWAP assistant director Alastair Woodland acknowledged the council’s proactive approach and significant progress in tackling fraud but stressed the need for further work, especially in consolidating systems inherited from legacy authorities. He highlighted single person discount fraud as a growing issue the council plans to address rigorously.
Interim CFO Clive Heaphy explained that data matching efforts often reveal individuals incorrectly claiming single person discounts when they are part of a household, a common source of recoverable funds and, in some cases, legal action in other councils. “We are taking a very hard push on that at the moment,” Heaphy said.
Cllr. Lee Baker (Lib Dem, Taunton North) inquired whether the spike in referrals was due to increased staff vigilance or neighbors reporting suspected fraud. SWAP senior auditor David Warren responded that most referrals originate from the public, a trend consistent with other similar-sized authorities, driven by community awareness and concern.
The report’s findings underscore the importance of modernizing systems and maintaining public vigilance to curb benefit fraud in Somerset.