§ Mr. Meacherasked the Secretary of State for Social Services if he will state the total net losses in each year from 1962 due to overpayment of, respectively, family allowances, unemployment benefit, sickness benefit, maternity benefit, widows' benefit, retirement pensions, industrial injury benefit, other national insurance benefits, and supplementary benefit; and if he will estimate for each of these years the losses in the case of each benefit due to suspected fraud.
§ Mr. DeanIt is not possible to give reliable estimates of losses which remain undetected.
Table A below shows the losses recorded in each year from 1962–63 to 1971–72. The loss will in some cases have been recorded some time after the overpayment—for example, where repayment had been required but it was not ultimately possible to recover the money. The figures for 1972–73 are not yet available.
For supplementary benefit, the accounts up to 1970–71 were compiled differently, showing the gross sums recorded during the year as overpaid and the amounts recovered during the year in respect of that and previous years. The amounts are shown in Table B.
Losses recorded as due to fraud, where available, are indicated in Table A. The accounts of the Insurance Funds have not up to now distinguished those of the recorded losses which were due to fraud. From and including 1972–73, however, this information will be available for all social security benefits.
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TABLE A £ thousand Family Allowances Supplementary Benefit Year Total Due to fraud Unemployment Benefit Sickness Benefit Maternity Benefit Widows' Benefit Retirement Pensions Injury Benefit Other N.I. and I.I. Benefits Total Due to fraud 1962–63 … 49 5 84 267 12 95 102 23 28 — — 1963–64 … 48 7 112 358 15 121 100 31 31 — — 1964–65 … 52 11 111 355 16 109 122 35 34 — — 1965–66 … 55 8 88 436 19 66 133 45 39 — — 1966–67 … 54 9 124 556 19 82 126 57 41 — — 1967–68 … 68 14 270 681 19 80 159 61 46 — — 1968–69 … 88 9 324 768 22 87 188 60 50 — — 1969–70 … 116 13 345 876 22 99 181 66 50 — — 1970–71 … 137 11 433 992 24 91 170 63 53 — — 1971–72 … 175 17 657 1,259* 33 144 247 75 71 1,912 304 * Including invalidity benefit.
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TABLE B £ thousands Supplementary Benefit Overpayments recorded Year Total Due to fraud Amount recovered 1962–63 … … … … 920 177 511 1963–64 … … … … 1,164 231 589 1964–65 … … … … 1,224 329 547 1965–66 … … … … 1,360 432 589 1966–67 … … … … 1,307 349 575 1967–68 … … … … 1,830 436 625 1968–69 … … … … 2,478 611 816 1969–70 … … … … 2,966 697 947 1970–71 … … … … 3,624 985 1,193
§ Mr. Meacherasked the Secretary of State for Social Services in the case of which means-tested benefits have records been kept in the last 10 years of the checking procedures against fraudulent claims, and in each of these cases how much was spent on clerical wages in making these checks, how many forms were checked, how many persons were found to be making fraudulent claims; and how much was recovered for the taxpayer.
§ Mr. DeanNone. The primary purpose of checking procedures for the 7 million claims for means-tested benefits made each year is to ensure that the correct amount of benefit is paid. Fraud may be prevented or detected in the course of these checks but the cost of recording the detailed information sought by the hon. Member could not be justified.