HC Deb 16 December 2002 vol 396 c618W
Mr. Drew

To ask the Secretary of State for Work and Pensions what(a) recorded and (b) estimated level of fraud has taken place through benefit payments at post offices in each of the last ten years. [86811]

Malcolm Wicks

[holding answer 12 December 2002]: As part of our programme to modernise welfare delivery, from next April we shall be paying more benefits direct into bank accounts. The move to direct paymentprovides a safe, convenient, more modern and efficient way of paying benefits that will reduce the cost of red tape and make the system more secure from fraud.

The figures in the table show losses from fraudulent encashment of instruments of payment. These may include losses incurred through transactions at places other than post offices, such as banks and building societies. Figures for instrument of payment fraud prior to 1995/96 cannot be identified separately.

Year Order book losses £m Girocheque losses £m Total instrument of payment losses £m
1995 to 1996 133.0 17.0 150.0
1996 to 1997 84.0 17.8 101.8
1997 to 1998 98.0 21.0 119.0
1998 to 1999 83.2 19.4 102.6
1999 to 2000 89.4 19.3 108.7
2000 to 2001 58.0 19.2 77.2

Source:

Fraud Strategy Unit