Benefit Fraud (Hansard, 26 February 1999)

§ Mr. Timms

My right hon. Friend the Secretary of State for Social Security will publish a fraud strategy document which will outline this Department's approach for creating a secure benefit system.

The administration of the Benefits Agency is a matter for its Chief Executive, Peter Mathison. I have asked him to write to the right hon. Member.

Letter from Peter Mathison to Mr. David Maclean, dated 25 February 1999: The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking what estimate he had made of the number of people claiming social security benefits while receiving a wage paid in cash; and what measures he plans to take to reduce the number. The information is not available in the format requested as it is not possible to identify how many claimants of any benefit are receiving a wage paid in cash. For 'in-work' benefits, for example Family Credit, the claimant may be entitled to work and, should they so wish, receive their wage in cash. The Benefits Agency employs investigators specially trained in the investigation of employers who are suspected of colluding with people committing benefit fraud. The investigations encompass all benefits with the majority of them involving an element of wages being paid in cash. A significant number of employers are prosecuted each year. In the current financial year to date (at 31/01/99) there have been 356 collusive employer prosecutions and achieved estimated savings of £27.05 million. As regards individual customer fraud, so far this year out of a total of 852,216 cases investigated by the Benefit Fraud Investigation Service 434,247 (or 50.9%) related to undisclosed earnings. No doubt many of these involved wages being paid in cash. I hope you find this reply helpful.