An internal audit of Oldham Council staff expenses has revealed an 'unexplained rise' in claims, with costs reaching over £312,000 in the 2025-26 financial year. Inspectors found a lack of regular monitoring and oversight, though the council stated there is 'no suggestion of misuse'.
Expense Claims Surge by 56% Since 2019
According to a report published ahead of an audit committee meeting on July 22, staff made 612 claims between April 2025 and March 2026, costing taxpayers more than £312,000. This represents a 56% increase in the number of claims compared to 2019, when 392 claims were made costing over £132,000. Adjusted for inflation, the increase is 26%. The report noted that claims dipped during the first year of the Covid-19 pandemic in 2020 but have largely risen since.
Auditors Flag Lack of Oversight
The report from the council's internal audit team stated that the reasons for the increase were 'unclear'. It highlighted a lack of regular monitoring of staff with high mileage claims or unusual travel patterns, as mileage spending is not routinely reported and trends over time are not reviewed. Auditors also noted that no value-for-money review of mileage expenditure against comparable costs of public transport has been conducted, and costs are not benchmarked against comparable authorities.
Council audit officers have requested a review of mileage claims in each service, particularly in light of changes in work practices such as home working and remote meeting technology. For general expenses, claims increased post-pandemic but have since fallen back to pre-pandemic levels. However, auditors called for quarterly monitoring and reporting of staff expense claims.
Concerns Over Children's Services and Hotel Costs
The audit report raised specific concerns about expense claims in children's services, suggesting that staff were submitting some claims for payroll reimbursement. Auditors recommended that client-related expenditure should be accounted for elsewhere and purchased via purchase card instead. The report also noted that the staff expenses policy has not been updated to reflect post-pandemic working practices, and high-value individual claimants are not routinely reviewed.
On business and travel expenses, auditors highlighted a sharp decrease in hotel costs in the last year, but noted that £854,829 was spent on hotels the year before. Since 2019, the council has paid over £2 million for staff hotel expenses. The peak in 2024 was attributed to increased use of hotel bookings for social care temporary accommodation costs via Click Travel. These costs have since dropped back below pre-pandemic levels.
Flight and Train Travel Costs Rise
While hotel costs have decreased, expenses for flights and train travel have increased, and the reasons for this are also 'unclear'. Auditors highlighted this as 'of particular interest', noting that such travel should only be used 'by exception'. The report identified 'authorisation weaknesses' that need to be addressed, stating that addressing these issues will reduce exposure to financial, operational, and reputational risks.
In their opinion, auditor officers said they could give 'limited assurance' over the 'unexplained rise in post pandemic business travel costs', as these weaknesses increase the potential for fraud, error, and mismanagement, and may expose the organisation to reputational harm if not addressed.
Council Response and Actions
In response to eight recommendations, management said they will set up monitoring and reporting every six months and update their expenses and car allowance policies. A council spokesperson said: 'The council takes the findings of the Expenses, Travel and Subsistence Review seriously and has carefully considered the recommendations set out in the report. The review identified areas where processes and oversight can be strengthened, and work is already underway to act on these findings. This will help to ensure travel and mileage claims are administered consistently, transparently and in line with council policy. There is no suggestion of misuse, however we are committed to maintaining the highest standards of accountability for public money and will implement the actions arising from the review to further improve our arrangements. We will continue to monitor compliance and ensure appropriate checks are in place to provide assurance to residents that taxpayers’ money is being spent responsibly.'
