§ 13. Mr. TredinnickTo ask the Secretary of State for Employment what resources his Department devoted to the recent clampdown on fraudulent claims for unemployment benefit in the west midlands; and if he will make a statement.
§ Mr. FowlerThe two recent fraud investigations concerned private hir care and taxi drivers in the west midlands and an exercise in Coventry that examined claimants who had failed to collect their Girocheques, despite being advised to do so. A total of 18 fraud staff were employed by my Department on the two exercises, at a cost in salaries and expenses of £54,000. The net benefit savings that accrued from these exercises amounted to £510,000.
§ Mr. TredinnickHow many benefit claims were withdrawn as a result of the investigations? Will my right hon. Friend tell me how much money was saved nationally as the result of the investigations in 1987–88?
§ Mr. FowlerYes, Sir. The amount of money saved as a result of fraud investigations has increased from £11 million in 1984–85 to £54.6 million in 1987–88. The number who have withdrawn claims as a result of such investigations has increased to 80,000 in the current year.
§ Mr. John EvansIf the investigation of fraudulent unemployment benefit claims has been so successful and has saved taxpayers millions of pounds, why does not the Secretary of State try to persuade the Government to mount a drive against fraudulent tax claims and save taxpayers hundreds of millions of pounds?
§ Mr. FowlerWe want to see both investigative activities taking place. I do not think that anything that the hon. Gentleman says should detract from the seriousness of the fraud that is being perpetrated here. We are not talking about people who are confused about their social security entitlement; we are talking about people who are deliberately defrauding the system. I think that it is about time that the Opposition supported this action.