ESSEX council is hemorrhaging £10 million per year through council tax fraud or error, according to the authority.

The announcement came as councils across the county embark on a new partnership to deal with the issue.

Essex County Council is supporting the district, borough and city councils in a to tackle the problem.

Residents are being urged to look at their last council tax bill and to check that they are paying the right amount.

As part of a crackdown, new data checks are coming into force, the council said.

Chelmsford City Council and all other Essex local authorities have invested in developing a new software system allowing them to share data. It will highlight potential errors and fraud.

Chelmsford City Council’s cabinet member for finance, Councillor John Galley, said: “Funds such as Housing Benefit, Council Tax and Pension Credit are there for those who find themselves in genuine need.

"As this new initiative shows, Chelmsford City Council is committed to protecting public money and those taking advantage of the benefits system can be assured that we will investigate fraud and in certain cases, we will prosecute.”

The biggest area of abuse is thought to be the Single Person Discount, which allows recipients living alone to claim a twenty-five per cent discount on their bill.

Essex County Council cabinet member for finance, Councillor John Spence, added: “Council Tax is the tax that pays for the services we all take for granted.

"It’s the money that pays for our bins to be collected, our roads to be maintained, our schools to be built, and our elderly and young to be looked after, as well as of course policing and fire services.”

He added: “In the end, such losses mean higher council tax bills for the honest taxpayers. While this is fraud against the council it is your neighbour who will have to foot the additional bill, or suffer from inferior services.”

If your living circumstances or income have changed and you haven’t declared it, you could be committing fraud without even knowing it, the council warned.

The new software, coming in October, will enable all Essex authorities to share data and detect possible errors or fraud.

If you have made an error, please tell us now by going online at chelmsford.gov.uk/spd or by calling 01245 606400.