LOCAL authorities have slammed the government for the lack of financial help in promoting benefits, while fraud investigations are rewarded with subsidies.

Hyndburn Council made £95,000 for identifying £600,000 worth of benefit fraud during 1995/96.

But there was no cash incentive to encourage the council to provide information on what benefits are available to genuine claimants.

Dan Sherry, Hyndburn's finance director, said: "Following the identification of more than the government's £134,000 fraud target during 1995/96, we were rewarded with almost £100,000.

"On July 2, the policy and resources committee will consider how to invest this money.

"Putting it back into fraud investigation - enabling it to pay for itself - is the most obvious way of distributing it."

Hyndburn Council is also considering joining a computer database of known fraudsters to stop them travelling from borough to borough.

Blackburn Council identified £1,222,917 worth of fraud, claimed in rent allowance on privately-owned homes, rebate on council house rents and council tax.

Bill Taylor, Blackburn's management and finance committee chairman, said: "We were financially rewarded by the government and consider ourselves to be relatively successful in clamping down on fraud.

"And although we have strong policies about publicising what benefits are available, we are not given the same cash incentive to encourage benefit claims."

He added: "Last year there was more than £1 million of unclaimed benefits in the borough."

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