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Alan Waters, deputy leader of Norwich City Council said: "The vast majority of claimants are legitimate, with Adidas Crazyquick Basketball Shoes For Sale benefit paid to people who genuinely need it.
same amount the council's budget will be cut by next year.
But with fraud only accounting for a small fraction of the overpayments, councils will have to target those who delay in telling them their circumstances have changed to combat the wastage.
And their work to target cheats has meant 108,136 has been paid back through legal action in the past three years.
While housing benefit is administrated by local councils, the money comes from the government, with the city council last year distributing 69m in housing benefit cash.
17m Norwich housing benefit overpaid
Partly through fraud, partly through mistakes and partly through claimants delaying telling City Hall about changes in circumstances, the council last year overpaid by 4.7m almost the Adidas Boost For Sale
A spokesman for the council said: "We doggedly track down people who intentionally defraud the council, taking legal action to recover money, where necessary."
Those budget pressures are putting jobs at risk, while cuts to services include closing Tombland public toilets, reducing our Christmas lighting, charging homes for replacing lost wheelie bins and halting tree planting outside of conservation areas.
South Norfolk Council paid 76,314 in error and cheats took 782,193.
All the councils said they were attempting to claw money back and were punishing false claims through courts, sanctions, warnings and fines.
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At Broadland Council 1,141,200 was overpaid in the same period 1,058,600 caused by a mistake from a claimant and 82,600 by mistake from the council, while fraudsters took 311,200.
But the figures, obtained by the Evening News through the Freedom of Information Act, also show housing benefit cheats have taken an additional 1m since 2008, with 123 people prosecuted.
But it comes against a backdrop where claimants are failing to tell the council that their details, such as their income or the number of children living with them, have changed.
"We strongly urge people to keep us informed about any change of circumstances so we can respond appropriately to these."
And that means, over the past three years 17,055,301 was overpaid.
2008, the percentage of housing benefit wrongly paid has dropped from 11pc of the total amount spent on housing benefit to just over six per cent this Adidas Easy Boost 350
year.
Last year the council exposed 51 housing benefit fraudsters, with the biggest false claim reaching 30,650.
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