§ Mr. David EvansTo ask the Secretary of State for Social Security what was the amount recovered in 1988–89 as a result of the work of anti-fraud officers in his Department; what was the target set; and what were the comparable figures for five years ago.
§ Mr. NewtonThe total savings achieved by action against social security fraud in 1988–89 were just over £340 million, taking the Department of Social Security and the Department of Employment together. This compares with just over £120 million in 1984–85. For the DSS alone, the 463 1988–89 savings were, in round figures, £260 million against a target of £240 million, which compares with £100 million in 1984–85.
§ Mr. EvansI thank my hon. Friend for that reply. Although those figures are encouraging, are they not merely the tip of the iceberg? Will my hon. Friend assure the House that his Department will keep as a high priority the anti-fraud office which is doing such a splendid job, so that the taxpayer may save money? After all, the taxpayer is the paymaster, and we should bring more such fraudulent individuals to justice.
§ Mr. NewtonIt is undisputed that some social security fraud still goes undetected, so there is scope for further action. We shall continue to ensure that our efforts, and those of the Department of Employment, are made as effective as possible.
§ Mr. SkinnerWill the Minister also examine those employers who are taking tax and national insurance contributions from their employees and not passing the money to the proper department? An estimate the other day suggested that more than £1 million per day is being taken by such employers and not passed on, which is fraud on a far bigger scale than that described by the Minister. As for talking about the tip of the iceberg, the Minister should turn the attention of his right hon. and hon. Friends in other Departments to City fraudsters such as those involved in Ferranti who go undetected because the Government will not attack their own friends.
§ Mr. NewtonI shall concentrate my reply on the hon. Gentleman's quite sensible point about tax and national insurance fraud by employers. He will know that the Inland Revenue vigorously pursues such matters. Its compliance officers save about £2 billion, as I recall the latest figure, and there have been a number of prosecutions. I accept that our concern with fraud should not be confined to social security beneficiaries who are getting benefit fraudulently but should be extended to anybody who is defrauding the taxpayer and thus other beneficiaries.
§ Mr. Brandon-BravoIf, as my right hon. Friend said, the amount of social security fraud discovered was in excess of £250 million last year, in layman's terms would it not be true to say that that would be the equivalent of giving every old age pensioner in the United Kingdom an additional 50p per week? Does that not put social security fraud into its proper perspective?
§ Mr. NewtonIt is for precisely that sort of reason that we take the drive against fraud so seriously. To put the point another way, the sum that I mentioned is significantly greater than the very large amount that we have just made available in additional pensioner premiums.