Kent Taxi Firms Accused of Overcharging Council for £30K

Kent taxi firms have come under scrutiny after it was discovered that they overcharged the local council by nearly £30,000 for special needs school transport services they did not provide. Between April and August 2024, Kent County Council (KCC) officials identified 15 instances where taxi companies submitted invoices for trips that were never made. These irregularities were detected through a routine check comparing school attendance records with the transport claims submitted by taxi firms.

This incident follows other cases of financial misconduct in the taxi industry, such as a taxi driver jailed after fraudulently borrowing £130,000 in Covid loans. The growing concerns over fraud in the sector highlight the need for stricter financial oversight to prevent further misuse of public funds.

The Home-to-School Transport (HST) service supports around 6,000 special educational needs (SEN) pupils across Kent, costing taxpayers approximately £70 million annually. The council has assured that public funds have not been lost, as the falsely claimed amounts will be deducted from future payments to the respective taxi firms. However, companies involved in these discrepancies could face written warnings or even termination of their contracts if such practices persist.

Chair of the Governance and Audit Committee, Cllr Ros Binks, has been a strong advocate for stricter oversight of council expenditures. She emphasized the importance of thorough invoice verification to prevent financial mismanagement and fraudulent claims.

Cllr Ros Binks stated:

"I am assuming that all invoices are checked and there are systems in place to pick up irregularities. I am not surprised irregularities happen, for all sorts of reasons including error, but councils have always been fair game because of a historic lack of checking. We have been pressing for a change in that culture, not least because KCC has to watch every penny it spends."

Council documents presented to the committee on March 20, under the section "Irregularity Referrals by Directorate and Fraud Type," detailed how these discrepancies were identified and addressed. The transport department within Growth, Environment, and Transport is responsible for managing such issues. The council ensures that overclaimed amounts are either deducted from future invoices or recovered separately. Firms receiving warnings are expected to correct their invoicing practices, while repeat offenders risk contract suspension or withdrawal.

Green Party councillor Mark Hood, also a member of the committee, acknowledged the need for vigilance in preventing financial misconduct.

Cllr Mark Hood stated:

"The issue regarding fraudulent charging for home-to-school taxi services is an important one. The scale of the use of taxis and the number of individual contracts does mean that there are opportunities to commit offences and it is right that £29,649 of incorrect invoicing has been identified for 15 contracts. This is in the context of a £68m budget and 6,000 children with special needs being transported by taxi each year across Kent. Of course, there may be the odd invoicing mistake but, nevertheless, everything should be done to ensure nobody is paid more than they should be to take these children to and from their schools in safety."

The revelations highlight the significance of financial accountability in public service contracts. As local authorities face budget constraints, efforts to prevent misuse of taxpayer money remain a key priority. Stricter oversight measures may help ensure that funds allocated for essential services are used appropriately and transparently.