How LBFIG members are combatting the fraud risk posed by polygamous working

A recent successful prosecution by Cotswold Council has highlighted the increasing fraud risk posed to local authorities by employees simultaneously working multiple employment contracts. 

This is a matter that LBFIG members have been addressing since 2023, when 26 member boroughs commenced a pilot data matching exercise via the Cabinet Office National Fraud Initiative (NFI) London Fraud Hub (LFH) to target the emerging fraud risk from what is termed polygamous working. The proof-of-concept project demonstrated that the LFH is an effective tool in the fight against emerging fraud risks, providing notable successful outcomes in identifying where workers – both agency and permanent – are working across multiple contracts and not fulfilling their contractual obligations.

From the referrals marked as fraud, those involved have recorded an astounding £400K in salary overpayments. This, combined with the NFI estimate for 22 dismissals/resignations at £5,000 per case, totals an impressive £489,775.60.

Following the success of this pilot, the Cabinet Office authorised an extension period for data matching related to polygamous working via the LFH system. We now conduct regular matches of council and MSP agency payroll records to detect this specific type of fraud on an ongoing basis. The outcomes will inform the National Fraud Initiative's (NFI) aim of including this match in the 2026/27 national exercise.

Read more about the Cotswold Council prosecution at Former Tewkesbury Borough Council employee prosecuted for fraud - Tewkesbury Borough Council