News story

28th November 2002

Government Figures Reveal Benefit Fraud Increase

Steve Webb MP, Liberal Democrat Work and Pensions Secretary, commenting on today’s Government figures that reveal benefit fraud and error has increased, said:

“The Government continually claims that it is winning the war on benefit fraud, but these figures reveal the true story. Income Support and Jobseeker’s Allowance fraud and error is over £1 billion a year and rising.

“Income Support is the most important benefit targeted by fraudsters, but no progress has been made in reducing the level of fraud since the last set of figures. Income Support fraud and error has remained static at £870 million a year.

“Amazingly the figures show that in addition to customer fraud and error, £¼ billion is lost because of officials making blunders.

“The Government is talking tough on benefit fraud, but failing dismally in practice. It must start taking effective steps to beat the fraudsters.”

ENDS

Notes to Editors:

· The Department for Work and Pensions today released the report “Fraud and Error in Claims for Income Support and Jobseeker’s Allowance from April 2001 to March 2002”. It provides an update on the last set of figures which covered the period October 2000 to September 2001. The latest figures reveal that fraud and error in Income Support and Jobseeker’s Allowance stands at £1.15 billion, up on the last set up figures when it stood at £1.14 billion.