Click here to read the latest report on Fraud and Error in the Benefits System. It would of course be more useful to split the two categories down into how much is spent in "error" and how much is "fraud". Interesting that they choose not to do so.
Estimates of Fraud and Error across all benefits in 2008/09
Estimates for the individual benefits between April 2008 and March 2009
Key findings for the individual benefits that are measured on a continuous basis are that:
• Around 4.9 per cent, or £840m, of Housing Benefit expenditure is estimated to have been overpaid;
• Around 5.1 per cent, or £390m, of Pension Credit expenditure is estimated to have been overpaid;
Click here to review past reports.
PDF version
Benefit fraud costs taxpayers about £2bn a year with fraudulent disability benefit claims amounting to some £500m, the National Audit Office says.
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Social Security Minister John Denham says the system "frankly isn't working" (Dur: 5'02'') |
It is thought more than 750,000 people are making false claims.
The report comes as the Prime Minister begins his tour of the country to argue for his rethink of the benefits system.
![[ image: Disabled protestors picket outside the Houses of Parliament]](http://news.bbc.co.uk/olmedia/45000/images/_47681_protest_150.jpg) |
| Disabled protestors picket outside the Houses of Parliament |
According to the report, about 13% of disability living allowance claims in the past year were excessive.
That is higher than the 11% level of fraud the NAO discovered throughout the benefits system.
Most overpayments to people with disabilities resulted from exaggerated accounts of amounts spent on care or mobility needs, the report said.
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BBC Correspondent Mike Donkin reports on Blair's 'welfare roadshow' (Dur: 4'07'') |
Spending on benefits for the long-term sick and disabled has doubled since the early 1990s. It is estimated by the Department for Social Security as £23.9bn for the current financial year.
Income support widely abused
![[ image: Disabled people say they need benefits to pay for living expenses]](http://news.bbc.co.uk/olmedia/45000/images/_47681_disabled.jpg) |
| Disabled people say they need benefits to pay for living expenses |
The audit office summary comes amid reports that the Government will target disability benefit during its reform of the welfare state.
The Social Security Secretary, Harriet Harman, has previously refused to rule out such a move, although she has said the worst-off will not be targeted.
A Green Paper on welfare reform to be published soon shows 30p in every pound of national expenditure goes on welfare benefits and that in total benefit fraud costs £4bn a year.
The NAO Head, Sir John Bourn, said the DSS had improved checks on bogus claimants but widespread fraud remained.
Income support remains the most commonly abused benefit. The new Jobseekers' Allowance also gives cause for concern, he said.
The Benefits Agency estimated Income Support fraud last year had risen to £1.7bn from £1.4bn in 1994, he said.
But Sir John said the fact that 18 million people claimed income support meant errors were unavoidable.
Tackling fraud
The Benefits Agency said it had already saved £828m by weeding out fraudulent claims.
Its Chief Executive, Peter Mathison, said: "We have refined our performance targets to put greater emphasis on accuracy and quality and getting payments right, while still clearing cases quickly enough to get help to those who need it the most."
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| Tony Blair: benefits are "a dead end for too many people" |
The Chairman of the Parliamentary Committee of Public Accounts, Conservative MP David Davis, said fraudsters hurt genuine claimants.
"The fiddlers are bleeding the system," he said. "They steal money from the taxpayer and from those most in need.
"We will want to know what action is being taken and what more could be done to get a grip on the burgeoning levels of fraud and inaccuracy in benefit claims."
The Liberal Democrats warned against using fraud as an excuse to cut benefits.
Their Social Security Spokesman, David Rendel, said: "The issue of fraud should not be an excuse for taking benefits away from people in the greatest need."
http://news.bbc
.co.uk/1/hi/uk/politics/47584.stm
Work and Pensions
Written answers and statements, 21 July 2009
Bob Russell (Colchester, Liberal Democrat)
To ask the Secretary of State for Work and Pensions how many complaints her Department has received from benefit claimants over lost payment due to fraudulent use of chip and PIN cards in the last 12 months; what estimate she has made of the total monetary value of benefits stolen in this way; and if she will make a statement.
Helen Goodman (Parliamentary Under-Secretary, Department for Work and Pensions; Bishop Auckland, Labour)
No such complaints have been recorded by the Department in the last 12 months. We would expect customers who were concerned about chip and PIN fraud to contact their account provider rather than the Department.
http://www.theyworkforyou.com/wrans/?id=2009-07-21d.278152.h
Work and Pensions
Written answers and statements, 2 November 2009
Greg Knight (East Yorkshire, Conservative)
To ask the Secretary of State for Work and Pensions how much her Department spent advertising the Government's crackdown on benefit cheats (a) in total and (b) in airline magazines in 2009.
Jim Knight (Minister of State (the South West), Regional Affairs; South Dorset, Labour)
holding answer
In 2008-09, the total advertising expenditure for the 'We're Closing In' Targeting Benefit Thieves campaign was £4,967,098.
Between August and October 2009, the total expenditure on 'abroad fraud' communications in airline magazines was £50,604.
The £5 million invested in the campaign represents less than 0.004 per cent. of the benefit bill. We cannot determine exactly how much fraud has been prevented as a direct result of the campaign. However, it is worth noting that in 2000-01, before we ran fraud campaigns, the proportion of money lost to benefit fraud was 2 per cent. The most recent figures for 2008-09 show that it is now 0.6 per cent.
http://www.theyworkforyou.com/wrans/?id=2009-11-02c.291275.h
10 November 2009 – Publication of DWP research report 575: A qualitative study of satisfaction and dissatisfaction with Jobcentre Plus; an exploration of issues identified in the 2007 Customer Satisfaction Survey with a particular focus on those most likely to be dissatisfied.
A report is published today by the Department for Work and Pensions on the findings of in-depth, qualitative research among Jobcentre Plus customers and staff about the drivers of customer satisfaction and dissatisfaction with Jobcentre Plus services. The research was aimed at exploring the issues identified in the 2007 Customer Satisfaction Survey (DWP RR 480).
Although Jobcentre Plus has always followed up with a range of customer groups from the satisfaction surveys, this particular report departs in an important way from previous work as it’s the first time that the 'dissatisfied' group has been probed in detail. The aim is to gain further understanding of this group to help improve customer services. The Department and Jobcentre Plus conduct regular surveys into customer satisfaction. Ministers acknowledge that some customers are dissatisfied and will work with senior officials to address this.
The key findings of the qualitative research were:
- Most staff perceived customers to be satisfied with Jobcentre Plus services, and that any problems tend to be focused with a minority of individuals.
- Staff believed higher satisfaction levels amongst lone parents (as shown by the 2007 survey) were due to greater and more varied support available to lone parents in overcoming barriers to work, the scope for building a supportive rapport between lone parents and Lone Parent Advisers, and the voluntary nature of provision and requirements such as Work Focused Interviews (WFIs).
- Customers and staff agreed that satisfaction with the new claims process is influenced by the speed, accuracy and efficiency of data gathering and processing, and how customers are treated by staff.
- The timeliness (i.e. appointments happening on time) and privacy of Work Focused Interviews (WFIs) and Fortnightly Job Reviews (FJRs) are considered important in driving customer satisfaction.
- Both customers and staff identified that staff’s detailed up to date knowledge, being treated with respect, and being provided with professional and individualised services were important for good quality customer service.
- Causes of dissatisfaction amongst some JSA customers included a perception that training opportunities open to them through Jobcentre Plus are relatively limited, and that they can be sanctioned if they do not demonstrate that they are actively seeking and available for work.
- The effectiveness of Fortnightly Job Reviews (FJRs) was questioned by customers and staff because of limited time available for job search.
- Some customers felt like complaining but often did not. Reasons included the fact that staff were able to resolve their concerns before they made a formal complaint, and being put off by the formality of the complaints process.
- Customers said the open plan Jobcentre layout provided a more inclusive atmosphere and a less segregated office. Both staff and customer respondents reported that the lack of privacy in Jobcentre Plus offices was a problem.
http://www.dwp.gov.uk/newsroom/press-releases/2009/november-2009/dwp062-...
Dear Department for Work and Pensions,
Please supply the following in relation to disability living allowance, incapacity benefit, employment and support allowance, income support and other incapacity and disability related benefits, for the last financial year.
1) The financial cost of proven fraudulent claims
2) The estimated financial cost of fraudulent claims, including those not caught by the system
3) The amount of money spent on preventing such fraudulent claims, and investigating suspected or proven ones and recovering money
4) The estimated amount of such benefits that people are entitled to but that went unclaimed
5) The amount of money spent on identifying these potential claimants and assisting them to claim the benefits to which they are entitled.
http://www.whatdotheyknow.com/request/fraudulent_benefits_claims_amoun#i...
The level of benefit overpayments caused by fraud or errors has risen by £400m to £3.1bn in the last year, according to official estimates.
The National Audit Office (NAO) said the Department for Work and Pensions faced "significant challenges" in correcting the situation.
Some £1bn of the total figure for 2009-10 was caused by fraud.
Spending watchdog the NAO has qualified the department's accounts, meaning there are doubts about them.
On 31 July 2009 Housing Minister John Healey announced a crackdown on social housing tenants who unlawfully sub-let their properties or obtain them through fraudulent means.
Communities and Local Government (CLG) will help social landlords deal with this problem by:
1. Making best practice guidance available, highlighting the most effective ways of tackling fraud
2. Using the Audit Commission's National Fraud Initiative to help landlords highlight potential cases of fraud, and
3. Making money available to LAs who work with the RSLs in their area to crack down on fraud
Social landlords who wish to register their interest should contact: socialhousingfraud@communities.gsi.gov.uk.
Further information can be found in the News Release; Fairness and flexibilty in housing allocation - 29 July 2009.
Commitment
Social housing is a hugely valuable national asset. It provides security and stability that can help people to overcome disadvantage, and to build successful lives for themselves and their families.
There is great demand for social housing, with local authorities across the country experiencing significant growth in applications. Increasing the supply of social housing is one necessary response to this growth in demand. In addition, it is essential that we ensure all social housing available is used to help people who need it and who obtain it legitimately.
It is unacceptable that any social home should be occupied by anyone who has obtained it under false pretences, or as a result of dishonesty, or that anyone profits from the unlawful use of their home.
We therefore undertake to work in partnership to tackle unlawful occupation of social housing. A determined drive this autumn, focusing on properties identified by the Audit Commission's National Fraud Initiative, will be followed by sustained efforts by landlords and local authorities, supported by the Tenant Services Authority with their new regulatory powers.
The Tenant Services Authority will, through its consultation processes, establish the most effective way in which it can work with providers to tackle unlawful occupation of social housing. This may include the incorporation of requirements into its regulatory framework for social landlords to manage their homes in a way that ensures they are occupied by those people who need them and who obtain them fairly.
The Government will:
The Tenant Services Authority will:
The National Housing Federation will:
The Local Government Association will:
The Audit Commission will:
The Chartered Institute of Housing will: