News story

22nd February 2002

Government Fails On Benefit Fraud

New figures published today by the Department of Work and Pensions cast doubt on Government claims that it is winning the battle against benefit fraud, according to Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary.

The figures show that fraud and error in Income Support increased in the past 12 months from £705m to £727m. The report admits that: "Relative incidences of fraud and error … were very similar to those found in previous years."

Commenting on the new figures, Professor Webb said:

"The Government makes great play of its battle on benefit fraud. It talks tough but today's figures show that it is failing to deliver. As recently as 2000, the Chancellor talked about saving £1 billion on benefit fraud, and yet the cost of fraud is actually rising.

"Taxpayers are being swindled out of hundreds of millions of pounds each year, and the Government is making virtually no progress on stopping this.

"It is time for the tough talking to stop and the action to start."


ENDS

Notes to editors:

· The Department for Work and Pensions today released the report "The results of the AreaBenefit Review and the Quality Support Team from April 2000 to March 2001 - Fraud and Error in Claims for Income Support and Jobseeker's Allowance". It reveals that losses from fraud and customer error in Income Support, the biggest benefit targeted by benefit fraudsters, rose in cash terms from £705m in April 1999-March 2000 to £727m in April 2000-March 2001.

· Gordon Brown claimed to the House of Commons on 18 July 2000 (col 226) that: To make further social security savings by tackling fraud and error, we are announcing new investment in staff and technology… Our proposals achieve savings in excess of £1 billion."