COUNCIL bosses are investigating a potential 10 per cent rise in housing benefit fraud, linked to the recession.

Officers at Burnley Council said that the council could have made £131,000 in benefits over payments in the eight months from April to November this year.

A report to be presented to the Audit Committee of Burnley Council tomorrow says that the increase in the number of cases could be linked to the economic downturn.

The report reads: ”If benefit fraud is not tackled effectively, the impact on the provision of public services is significant.

“The recent economic downturn has resulted in an increase in claimants, locally our caseload has increased from 10,967 in August 2008 to 11,846 in September 2009.

“It would seem reasonable to assume the number of potentially fraudulent claims has increased as a result.”

Melanie Poole, team leader of investigations team for revenue and benefits at Burnley Council, said: ”During the last three years we have seen a rise in the number of potential cases of fraud being investigated. It is safe to assume from this that the number of fraudulent claims has increased.

“There are a number of different reasons that could account for the rise including people being more aware of benefit claims, but as this is essentially a hidden crime it is hard to pinpoint the motives behind the people responsible.

“We are keen not to deter people from genuine claims, but we feel the need to give a warning that we have a zero tolerance policy on fraudulent claims.

“People who claim fraudulently can end up with a criminal record, a fine or even imprisonment.”