Fraud busters at Lambeth Council recovered more than £6m stolen from the public purse last year.

The council has regained £6.6m in returns including overpaid housing benefits, and retrieved council houses that people were not entitled to or were illegally sublet.

More than £1m was retrieved through reductions in insurance claims, while 112 blue badges being used fraudulently for disabled parking were seized.

Some 210 people were prosecuted in total.

Internal fraud also increased by 400 per cent. Serious disciplinary action was taken against 12 members of council staff in 2008/9, up from just three in 2007/8.

In total 70 staff were investigated by the council’s internal fraud team, an increase of 50 per cent on the previous year.

The returns follow a £1.5m investment in counter fraud and internal audit work.

A full time police officer was employed by the council, 20 cases referred to him, leading to the recovery of £63,000 in cash and £200,000 related to council properties.

The council also has five dedicated anti-fraud teams, and works with accountants KPMG.

Mohammed Khan, Lambeth Council’s fraud and internal audit divisional director, said the challenges of the recession meant his team had to work even harder to limit the possibility of fraud.

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