§ Mr. Win GriffithsTo ask the Secretary of State for Social Security what savings have been made in his Department over the last 20 years, based on current prices, in(a) cash and (b) percentage of spending terms from (i) detecting fraud and (ii) providing a more accurate and efficient service administration. [147314]
§ Mr. RookerThe information requested on savings from detecting fraud and administration changes over the last 20 years is not available. We have however set in track a number of improvements to administration and tackling fraud that will produce savings in the years to come.
We are reforming the welfare state, to make it fit for the 21st century. After years of under-investment, we are putting in the investment needed to deliver more streamlined services focused on the individual needs of our customers, making better use of technology, and reducing the amount of fraud and error in the system.
We are modernising the way DSS services are delivered. From 2001, we will create a dedicated new service for pensioners and a new working age agency, bringing together the Employment Service and parts of the Benefits Agency dealing with people of working age. Over the next three years we will build new IT systems to deliver a modern, streamlined service to all our clients. From 2003 the normal method of benefit payment will be by Automated Credit Transfer directly into bank accounts, saving an estimated £500 million a year in reduced administration costs. We have also introduced new streamlined arrangements for handling disputes and appeals across the Department.
After years of neglect we are getting to grips with Social Security fraud. We are implementing a strategy to tighten up the system and make sure that from the very first claim, the right benefits are going to the right people at the right time. We have set firm targets for reducing the amount of fraud and error in Income Support and Jobseeker's Allowance by 25 per cent. by March 2004, rising to 50 per cent. by March 2006. The latest results show that we have already made a reduction in fraud and error from 9 per cent. of the benefit paid to 8.4 per cent.