WFH council staff with two jobs are investigated by government fraud squad after workers were caught 'moonlighting' during lockdown

Council employees with second jobs are being investigated for fraud after they were caught 'moonlighting' while working from home during the pandemic.

The government fraud squad the National Fraud Initiative (NFI) is looking at the practice of 'multiple contract working'.

This is where an employee misleadingly holds down two or more jobs at the same time.

Several councils, including Wakefield, Enfield, and Kensington and Chelsea, claim to have caught staff members in the deception.

The NFI, which is overseen by the Cabinet Office, launched a pilot scheme to establish the extent of the issue at London councils.

Home working has remained high across both public and private sectors since the pandemic and ministers are becoming concerned about the effect on productivity, especially in the Civil Service.

Every council is responsible for setting its own working regulations and most require people to declare second jobs.

Working for two employers at the same time becomes theft of time and fraud when someone knowingly collects two full-time salaries but splits their hours so they only work half the time for each one.

The government pilot investigating is working in collaboration with the London Borough Fraud Investigators Group (LBFIG), The Telegraph reported.

According to an official report published in June 2023 from Kensington and Chelsea Council, 'moonlighting' is a 'new and emerging fraud type'.

The report said: 'The pandemic created this risk when it normalised working from home and hybrid working.

'While this increases flexibility, it also creates new types of risks when during a cost of living crisis, a second income becomes very alluring.'

The report claimed there were 'several instances' where council employees were fraudulently working full-time simultaneously for other organisations.

Also, three Wakefield council employees faced allegations of multiple contract working in December 2021.

At Enfield Council, five people were found to have undertaken undeclared secondary employment in 2022-23.

Meanwhile, at Birmingham City Council an NFI investigation found 'fraudulent claims' made by an employee in 2020-21.

The employee had joined the council but also held a casual role as bank staff in the NHS.

It was found that both roles were being undertaken while working from home.

But the pilot project is not a direct response to the rise in remote working. Also, it is not specifically focused on employees based at home.

A Cabinet Office spokesman said: 'The National Fraud Initiative matches and compares pieces of data provided by private and public sector organisations to identify fraud cases.

'Last year, its work delivered savings of £171 million for taxpayers.

'One of the types of fraud cases the National Fraud Initiative has identified includes multiple contract working, where an individual misleadingly works in two roles at the same time, including at local councils.

'The Public Sector Fraud Authority, which oversees the NFI, is working with organisations to fight this kind of fraud wherever it occurs.'

A Birmingham City Council spokesperson said: 'Like many employers and organisations, following the pandemic, Birmingham City Council introduced a New Ways of Working policy, which implemented working practices, technology, and facilities to enable its staff to operate and carry out their roles in an agile way.

'Wherever our staff work from, our policies have not changed. Under the staff Code of Conduct, employees are responsible for informing their manager of any paid work they do for other employers, not least to ensure we comply with the Working Time Directive. Where managers have any information or concerns over any conflicts of interest, we will investigate these.'

A Wakefield Council spokesperson said: 'A report to the Audit and Governance Committee in December 2021 made reference to allegations that three employees had been working in second jobs whilst on sickness leave from the Council. The cases were investigated and appropriate action taken.'

Kensington and Chelsea Council and Enfield Council were contacted for comment.