London borough secures £82k order over direct payment fraud

A man found guilty of fraud has been ordered to pay Lambeth Council more than £80,000 over unlawful payments for carers who never carried out any work for him.

The man was sentenced to two years in custody, suspended for two years, in April 2023 after committing 'Direct Payment fraud' against the London borough.

Direct payments are council funds given to people to buy their own care and support.

Lambeth's counter-fraud team then took further action to recover the money stolen from them through the fraud and the courts have now ruled that the resident must pay back £82,238.

As the defendant had available assets, the council instigated Proceeds of Crime Act proceedings to recover losses from his assets.

The Inner London Crown Court found that the offender had retained the funds obtained from the council for personal gain.

On 18 November 2024, he was ordered to pay the council compensation within two months.

If he fails to make payment by the deadline, he would have to serve a custodial sentence of 18 months, according to the council.

Cllr David Amos, Lambeth's Cabinet Member for Finance, said: "This successful case shows that, where people try to defraud the council, we will do everything we can to track them down – and make sure Lambeth gets back the money they have wrongly claimed."

Adam Carey