§ 8. Dr. Julian Lewis (New Forest, East)What incentives she is giving local authorities to decrease the number of cases in which those committing housing benefit fraud are not prosecuted. [47475]
§ The Minister for Welfare Reform (Mr. Frank Field)The Government have released £200,000 of taxpayers' money so that legal resources in the Department can be made available to local authorities to bring, we hope, successful prosecutions where they are so desired.
§ Dr. LewisThe Minister was recently reported as having told the Child Poverty Action Group that it is not true that most benefit fraud is accidental. He will be aware of the Public Accounts Committee's criticism that only one case of detected fraud in every 100 proceeds to prosecution. Will he explain what further measures might raise the prosecution rate? Will he confirm that any steps that are to be taken will be revealed first to the House, and not, like the Child Support Agency proposals, to the press—let alone to the dreadful Derek Draper to enable him to stuff his bank account with another £250 an hour?
§ Mr. FieldTomorrow, I shall meet the Chairman of the Public Accounts Committee to follow up the very points that the hon. Gentleman has raised. I hope that we shall shortly be able to make a statement to the House on our counter-fraud strategy.
§ Mr. Jeremy Corbyn (Islington, North)Does the Minister recognise that one of the disincentives to local government in managing housing benefit is the enormous administrative cost associated with that benefit, which must be borne by local government? In effect, local government throughout the country is asked to subsidise 729 the Department of Social Security in that respect. Will the Minister make proposals fully to fund all the costs of administering housing benefit?
§ Mr. FieldThe answer to the first question is yes. The answer to the second question is that I shall think about it.
§ Mr. Iain Duncan Smith (Chingford and Woodford Green): Does the Minister of State essentially agree with the Public Accounts Committee's report and its general criticism? Will he tell the House when he is likely to introduce a Green Paper on the changes?
§ Mr. FieldThe Public Accounts Committee's report is a serious document, and I drafted part of the reply to it. As with the Green Paper on welfare reform, counter-fraud proposals will be brought before the House soon.
§ Ms Margaret Moran (Luton, South)Does my right hon. Friend agree that one of the reasons why we have such a legacy of fraud in housing benefit is the reduction in assistance to local authorities that the previous Government introduced in their final days, which prevents local authorities from effectively detecting and prosecuting fraud? Does he agree that another problem is the failure to ensure that we have a coherent information technology system linking the Benefits Agency and local government, as I witnessed when I worked in Luton Benefits Agency office for a day last week? The information technology system is crumbling and needs greater co-ordination. Will my right hon. Friend ensure that measures are taken swiftly so that we have a comprehensive review of the information technology system to link the Benefits Agency and local government and achieve more effective tracking of housing benefit and fraud?
§ Mr. FieldMy hon. Friend's second question is linked to the point made by my hon. Friend the Member for Islington, North (Mr. Corbyn). That is an issue that we take seriously. We are also concerned that some local authorities do not bring any prosecutions whatever. The biggest fine that fraudsters can face is the loss of benefit, and they can then continue to claim in the same local authority area or that of a neighbouring local authority. I hope that shortly we shall put plans before the House which deal with each of my hon. Friend's questions.