HC Deb 24 May 1999 vol 332 cc15-6
12. Mr. Eric Forth (Bromley and Chislehurst)

If he will make a statement on his policy for the detection of organised benefit fraud. [84002]

The Minister of State, Department of Social Security (Mr. Stephen Timms)

We have a national team of highly trained investigators in the Benefits Agency security investigation service, which exists to counter the threat of organized fraud. I visited its office in Manchester recently and was impressed with what I saw. Last year, just over 650 cases were accepted for prosecution as a result of the service's work. In addition, we have commissioned an independent review of the Government's approach to tackling organized fraud in social security, which will report in the autumn.

Mr. Forth

Why is the London organised fraud investigation team being wound up?

Mr. Timms

Because of serious concerns about the way in which it operated. We are learning the lessons from that experience. That is why, in February, I asked John Scampion, the commissioner of the social fund, to carry out a review of our approach to organised fraud. He is extremely well placed to carry out the work owing to his familiarity with the benefits system—he was the local authority chief executive at Solihull for 18 years.

This is an area in which we in the Department need to work together with local authorities. Of course, the problem also affects the private sector. Last week, I joined the Association of British Insurers for the launch of its fraud web site, which has a link to the DSS fraud web pages, which gave me a chance once again to promote the need for all of us who are affected by fraud to co-operate in tackling it.

Mr. Frank Field (Birkenhead)

As the Government have promised an announcement later today on the benefit card, and as one of the reasons for it was that it should act as an effective measure against fraud, does my hon. Friend have to hand the figures for the savings that taxpayers would have made had ICL delivered it on time? If not, can he make them available in the Library before the end of the day?

Mr. Timms

I do not have the figures to hand. If they are available, I shall ensure that they are placed in the Library.

Mr. Desmond Swayne (New Forest, West)

Does the Minister understand that virtual reality is no answer to the staggering amount of fraud in the system? Why are the Government reducing investigation and the emphasis on detection? Does he believe that detection and prevention are incompatible?

Mr. Timms

No; that is nonsense. We are not reducing the effort at all. We are making sure that there is proper attention to prevention, and not just detection. That is the basis of the strategy that we published in March. We are measuring the amount of fraud in the system systematically for the first time, and we will reduce it. Through such measurements, we will be able to demonstrate that we are reducing it, as the hon. Gentleman will see.