§ Mr. KirkwoodTo ask the Secretary of State for Social Security if she will make a statement about the results of the benefit review of child benefit. [49558]
§ Mr. FieldThe review of Child Benefit is part of the Benefits Agency Security Strategy. All major benefits will be reviewed to establish the amount and extent of fraud and incorrectness within the system.
False claims for children allegedly in full-time further education and unreported living together make up the majority of Child Benefit fraud—53 per cent. and 23 per cent. respectively. Fraud was found in 1.7 per cent. of the caseload with an estimated annual loss of £51.6 million; 3.7 per cent. of the caseload had a high suspicion of fraud with an estimated annual loss of £132.5 million.
The Government take fraud against the Social Security system very seriously. If it goes unchecked, it undermines the integrity and purpose of the system. The system should encourage openness and honesty and the gateways to benefit should be clear and enforceable.
442WThe Green Paper on Welfare Reform outlined proposals for improved detection, more effective deterrence and better prevention. The Child Benefit Centre is at present looking at ways to improve 16–19 year old benefit claims and Automated Credit Transfer checking methods.
The results of the benefit review of Child Benefit were aggregated from a random sample of 4,493 customers who had their benefit entitlement reviewed. The study showed 92.4 per cent. Child Benefit claims, like the majority of all Social Security claims, are claimed legitimately and administered accurately.