HC Deb 07 July 1969 vol 786 cc922-3
1. Mr. Fortescue

asked the Secretary of State for Social Services when he will now institute an inquiry into the increase in the cost of unemployment benefit in the last few years.

The Minister of State, Department of Health and Social Security (Mr. David Ennals)

The increased cost of unemployment benefit is a reflection of higher rates of benefit and a higher level of unemployment. I have no reason to think that other factors account for more than a fraction of the increase, but if there are any aspects on which the hon. Member feels that inquiry is called for I should be glad to consider them.

Mr. Fortescue

Has the Minister considered the desirability of tightening the administration of the payment of unemployment benefits, made on his behalf at employment exchanges, on the same lines as the tightening introduced by the previous Minister of Social Security for the payment of supplementary benefits to unemployed by officers of his Department?

Mr. Ennals

Officers of the Department of Employment and Productivity exercise a great deal of vigilance. Each exchange has an officer especially responsible for this, and there is a team of investigators, as I have previously told the hon. Gentleman. He will be interested to know that last year there were more than 700 successful prosecutions for unemployment benefit fraud compared with about 550 in the previous year.

Mr. Heffer

Will not my hon. Friend agree that the number of people involved in fraud is very tiny compared with the number genuinely receiving unemployment benefit? Is it not dangerous to develop the hon. Gentleman's argument in view of what used to happen in prewar years?

Mr. Ennals

I entirely agree with my hon. Friend. It is a small proportion. In a total of about 500,000 unemployed, of course some individuals will seek to exploit the scheme, but they are a small minority.