This report marks the first UK-wide local authority fraud and capacity survey since 2020, providing a renewed baseline from which to track trends, benchmark performance and inform strategy.
There has been a significant increase in reported fraud activity over the past five years and the Report provides a comprehensive picture of fraud risks and counter-fraud capacity across councils in England, Scotland and Wales. It also provides a useful evidence base for internal planning, partnership development and cross-sector collaboration.
The key findings reveal:
- A 98.9% increase in fraud case volumes over the past five years
- An estimated £265 million in detected fraud nationally for 2024/25, based on survey extrapolation
- Average fraud case value fell from £5,090 to £2,708 suggesting a rise in lower-value but higher-volume frauds
- 40% of councils report fraud work is carried out by staff with shared roles
- Tenancy, procurement and council tax fraud remain the highest-value categories
- A good return on investment, with £3.65 detected for every £1 spent on counter-fraud activity.
About the Survey
The survey was designed in collaboration with FFCL and other partners. Previous surveys were considered onerous and time-consuming to complete. We adopted a ‘lighter-touch’ approach to reduce this administrative burden and encourage wider participation.
View and Download the full NAFN Local Authority Counter Fraud Report 2025
Looking ahead, future annual surveys will aim to:
- Introduce greater granularity around fraud types, outcomes and council types
- Reflect shared service models and local delivery partnerships more explicitly
- Explore how prevention, deterrence and error recovery can be more clearly captured as distinct indicators of counter-fraud value
John Peerless-Mountford, Chair of NAFN Executive Board, commented:
“As Chair of the Executive Board I welcome the findings of this year’s Counter-Fraud Survey. It is a vital contribution to our shared understanding of fraud risk, resilience and response across local government. The report highlights both the scale and complexity of emerging threats such as identity fraud and insider risk to AI enabled deception, and underscores the critical role of data access, strategic collaboration and professional capacity in tackling them. NAFN remains committed to empowering councils with the intelligence, tools and governance support they need to protect public funds and uphold public trust.”
Mark Astley, Head of NAFN, added:
“This report reinforces the essential value of local authority counter-fraud work. With rising case volumes and increasingly sophisticated fraud methods, councils need targeted investment, better tools and stronger support to protect public money. The survey is a timely response to the growing threat of fraud and the absence of recent national data. Its findings will support benchmarking, inform policy development and help shape, influence and support the development of effective local and national risk and anti-fraud strategies.”
Trevor Scott, Chair of FFCL says:
“Councils play a vital role in the nationwide fight against fraud and corruption. Not only do they protect the public purse, but they help prevent local residents and business being the victims of such crime. The National Local Authority Counter-Fraud Survey 2025 provides much-needed insight into how effective local council fraud teams can be in tackling these issues. But it also highlights the current pressures, risks and real challenges councils are facing. It prompts reflection on how we can better support and strengthen counter-fraud activity across local government.
Its findings will be vital in shaping a coordinated, effective and well-resourced local fraud response. It provides evidence of the tireless effort and commitment that councils and their counter-fraud staff are making to prevent and detect fraud to benefit local services and residents served. Fighting Fraud and Corruption Locally is proud to support this work led by the National Anti-Fraud Network (NAFN).”
Rachael Tiffen, Director of Public Sector and Learning at Cifas and Board Member and Secretariat of Fighting Fraud and Corruption Locally (FFCL), says:
“With public sector fraud potentially costing up to £81 billion, it’s vital that local authorities prioritise counter-fraud training and robust data sharing. The NAFN counter-fraud report highlights this need. As the host and secretariat of the Fighting Fraud and Corruption Locally initiative, Cifas is committed to supporting councils through cross-sector collaboration and cutting-edge fraud prevention tools. Together, we’re helping to safeguard public services and tackle emerging threats like AI-enabled identity fraud.”
