£75,000 benefit cheat scandal

A SCROUNGING woman who pocketed £75,000 in benefits by claiming that she was a penniless single mother while living with the father of her three children has provoked fury after she escaped a jail sentence.

A woman who claimed extra benefits by pretending she was a single mother escaped a jail sentence A woman who claimed extra benefits by pretending she was a single mother escaped a jail sentence

Workshy Cheryl Laughton conned the system by telling the authorities Peter Mirza, her long-term partner and the father of her three children, was her landlord.

When she started claiming benefits in 1996 she said she had no idea who had fathered her eldest child, then aged two.

She made the same claim when she had another child with Mr Mirza in 2003, allowing her to rake-in handouts of up to £24,500 every year until Benefits Agency fraudbusters finally received an anonymous tip-off in 2008.

The couple’s oldest child is now 16 but investigators say their limited computer system allowed them to uncover fraud only for a three-year period from 2005 until 2008. That amounted to almost £75,000 in fake payouts at the taxpayers’ expense. But with the extra nine more years of benefits claims, fraud investigators say Laughton has fiddled more than £200,000 from the taxpayer.

It is too easy for people to scam the system and there needs to be harsher punishments

Emma Boon of the TaxPayers’ Alliance

Prosecutor Susan Hurst told Newcastle Crown Court that despite further suspicions it was possible to prove fraudulent claims had been made only between February 11, 2005 and March 31, 2008.

During that time, Laughton received £20,973 in housing benefit and £3,353 in council tax benefit, which gave rise to the three offences which she admitted.

Records also confirmed she had more than £51,000 in income support from the Department for Work and Pensions.

Tom Moran, defending, told the court Laughton had made arrangements for her three children, the youngest of whom is three months old, to be looked after if she were sent to prison.

But Judge Brian Forster QC gave her a 12-week term, suspended for 12 months. Because of her lack of income, he said he was unable to award Newcastle City Council any of their £4,301 costs – putting a further burden on the public purse.

The court heard Laughton’s long-term partner worked full-time as a taxi driver while she stayed at home pocketing extra cash courtesy of taxpayers. That allowed them to live a life way beyond their normal means.

But Laughton was able to walk free from court because of a DWP decision not to prosecute her over fake income support claims which accounted for the bulk of her fraud. Instead they plan civil action to force her to repay £51,000.

However, experts say a criminal prosecution would not have stopped them pursuing action to recover money in the civil courts. The controversial decision prompted anger from Emma Boon of the TaxPayers’ Alliance. She said: “Benefit fraud like that committed by Cheryl Laughton costs the public purse millions of pounds each year. It is too easy for people like Laughton to scam the system and there needs to be harsher punishments to act as a deterrent to others.

“But the Government needs to be bold and overhaul the whole welfare system so it is simpler, there are more incentives to work and it doesn’t pay to cheat.”

A neighbour of Laughton, in Benwell, Newcastle, who did not want to be named said: “She has played the system for years and everyone knew it, but then it’s so easy lots of people are at it.

“Her chap drives a taxi and works quite hard but everybody knows they are a couple. It’s incredible she got away with it for so long but we all thought she’d end up in prison. It’s a real let-off.”

Ms Hurst told Newcastle Crown Court on Friday that Laughton had claimed housing and council-tax benefit on the basis of being a single parent since 1996 and had repeatedly completed declaration forms insisting she lived alone.

When investigators quizzed her over her relationship with Mr Mirza she said the landlord had become her friend but nothing more. But officials found evidence that he was the father of all her children after raiding their home.

After further probes she changed her story and told investigators the father was one of Mr Mirza’s cousins, who had moved to Pakistan But investigators unearthed passport applications naming Mr Mirza as the father, electoral roll records and his taxi-licence paperwork.

The couple had also contacted police when one of the children disappeared and told officers they were mother and father. Undercover fraudbusters watching the couple’s home saw his cab repeatedly parked on the front drive.

A spokesman for the DWP wouldn't comment on the specific case but insisted they take benefit fraud extremely seriously.

She added: '' It costs us 1.5bn pounds each year and takes money that is needed to maintain vital services for the whole country. We are committed to stopping benefit fraud by catching cheats at the front line and are exploring new methods of detection. Nobody should think they can get away with it.''

Comments Unavailable

Sorry, we are unable to accept comments about this article at the moment. However, you will find some great articles which you can comment on right now in our Comment section.

Would you like to receive news notifications from Daily Express?