News, sport and entertainment from the Bournemouth Echo and Dorset Echo.

Pensioners targeted in fraud probe

From the Echo, first published Thursday 25th Jan 2001.

A BLACK economy is cheating New Forest taxpayers out of millions of pounds - and much of it is said to be down to tight-fisted pensioners.

Benefits investigators believe scores of elderly residents are claiming money they are not entitled to, when they have bulging bank accounts or lucrative private pensions.

One man in Burley was found to have more than £50,000 in private savings, yet was still on state support.

But with courts reluctant to take action against people in their 70s and 80s, there are few penalties the district council can impose.

Calls have been pouring in to a special 24-hour, fraud-busting hotline number set up by the council in November, which encourages residents to "shop" their dishonest neighbours.

The council pays out around £25 million in housing and council benefits every year, but it estimated that at least ten per cent of that is lost as a result of false claims.

If prosecuted, fraudsters illicitly claiming £20,000 can face up to six months in prison.

But while the phoneline has provided more than 50 leads about people working or living with someone without notifying the authorities, investigations officer Mike McFarlane says it has failed to shed much light on the biggest group of swindlers - OAPs.

"They are undoubtedly our biggest problem. Many seem intent on saving money for their children, and believe we don't need to know about their savings," he said.

"One man in Burley had £53,000 in the bank while claiming benefits, and owed around £19,000. He paid it off very quickly, but it highlights the problem we face.

"It is also difficult to take court action in these circumstances. We tried that with another man who owed around £17,000, but it wasn't successful.

"People don't want to come down hard on someone frail or elderly, so - other than making them pay the money back - there are no sanctions available to us."

The "beat-the-cheats" free hotline number is 0800 085 1637.

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