HC Deb 10 July 1969 vol 786 cc1564-6
21. Mr. Ashton

asked the Secretary of State for Employment and Productivity what checks are made on persons registered as unemployed by labour exchanges to ensure they are not working as labour-only sub-contractors whilst drawing unemployment benefit; and what action is taken to stop this practice.

Mr. Fernyhough

A person who claims unemployment benefit is required to make a declaration covering every day of his claim that he is unemployed, capable of and available for work in an employed contributor's employment. He has to lodge his national insurance card at the local office dealing with his claim, and inquiries are made to verify the circumstances of the termination of his employment.

Fraudulent claims normally come to light through a variety of channels, including inconsistencies in the data relating to the claim, questioning of the claimant and information received. Wherever possible criminal proceedings are taken.

Mr. Ashton

Have not labour exchanges the power to make a man claim daily or hourly for benefit? That would stop him from working as a labour-only sub-contractor. What action is taken against employers who deliberately employ men as labour-only contractors knowing that such men are still claiming unemployment benefit?

Mr. Fernyhough

I think there is one thing that we should make clear. I believe that the general body of unemployed are as honest as any other citizens and that if we were to try to make out a case that the unemployed in general are fiddlers or bigger fiddlers than anyone else, it would be unfair. [Interruption.] I have no doubt that some hon. Members are acquainted with income tax and expense fiddles. There were 598 prosecutions last year and wherever we have any evidence that men are claiming benefit under false pretences, action is taken.

If we were to try to compel every man to sign on at the employment exchange every day, the hue and cry about the consequent increase in the number of civil servants would be a great joy to the Opposition. We have to keep this problem in perspective and as far as we are able we follow up any complaints we get.

Those who employ these men have a moral obligation, if they know that they are still registered as unemployed, to report it to the employment exchange if the men are still drawing benefit.

Mr. Speaker

Long answers and long supplementary questions means fewer Questions.