§ Baroness Jegerasked Her Majesty's Government:
What report they have received from the National Audit Office regarding the underpay 1144WA ment of unemployment benefit for 1987–88; and what steps will be taken for any rectification.
§ Lord Young of GraffhamAs he is required to do, the Comptroller and Auditor General has reported to the Public Accounts Committee of the House of Commons on the results of his examination of the National Insurance Fund Account for 1987–88. The Comptroller and Auditor General's report states that a test examination of awards of unemployment benefit revealed a projected level of underpayments equivalent to 4.2 per cent. (£61 million). However, this figure was subject to a sampling error which meant that underpayments might have been between £34 million and £89 million. In view of these circumstances the Comptroller and Auditor General has qualified his certificate on this account.
The Permanent Secretaries of the Department of Employment and Department of Social Security were examined by the Public Accounts Committee of the House of Commons on 17th April 1989. Meantime, of the 27 cases of identified underpayment, 11 were in receipt of supplementary allowance and suffered no financial loss. In all cases of underpayment identified by the examination, the due amount has now been paid to the claimants concerned. This is the normal practice whenever cases of underpayment come to light.