HC Deb 01 May 2002 vol 384 cc877-8W
Mr. Clappison

To ask the Chancellor of the Exchequer, pursuant to the answer of 5 February 2002,Official Report, column 851W, what the value was of the 18 penalties imposed as a result of allegations of WFTC/DPTC fraud made via the anti-fraud hotline; what the value was of the 530 recoveries; if the two prosecutions resulted in convictions and what the sentence received in each case was; and what the cost is of (a) the benefits anti-fraud hotline and (b) the childminder's hotline in 2001–02. [37583]

Dawn Primarolo

The NAO report into the Inland Revenue's accounts for 2000–01 confirms that inquiries were thoroughly appropriately followed up. Of the cases referred to in my answer of 5 February, 2002, Official Report, column 851, penalties of around £10,000 were imposed in the 18 cases which resulted from allegations to the national benefit fraud hotline about working families tax credit (WFTC) and disabled persons tax credit (DPTC) applicants. In addition, approximately £743,000 of tax credits is recoverable in relation to the 530 cases. Both of the prosecutions referred to resulted in convictions. The individuals convicted were given a two-year conditional discharge and 50 hours community service respectively.

Based on figures to date for 2001–02, the Department for Work and Pensions estimates the total annual cost of running the national benefit fraud hotline at £816,000 and the estimated annual cost to running the childminder's hotline for WFTC and DPTC applications during 2001–02 at around £1,000.

Mr. Roy

To ask the Chancellor of the Exchequer how many cases of fraud have been exposed during the past 12 months in relation to the child care tax credit system. [46108]

Dawn Primarolo

The child care tax credit is only one component of both working families' and disabled person's tax credits (WFTC and DPTC). In the 12 months to 31 March 2002 almost 8,000 WFTC or DPTC awards were found to be non-compliant but it is not possible to say how many of these included non-compliance in relation to child care charges.

Mr. Clappison

To ask the Chancellor of the Exchequer how many(a) investigations, (b) penalties and (c) prosecutions have been instituted since September 2001 in respect of working families tax credit fraud. [46898]

Dawn Primarolo

In the period from 1 October 2001 to 31 March 2002 there have been(a) in the region of 11,000 investigations opened, (b) 310 penalties applied, and (c) 26 prosecutions instigated.

Chris Grayling

To ask the Chancellor of the Exchequer for what reason(a) a widow's pension is and (b) maintenance payments are not taken into account in assessing eligibility for working families tax credit. [53511]

Dawn Primarolo

The fact that widow's pension is taken into account in tax credits and maintenance payments are not, aligns the treatment with what happens in the rest of the tax system. The maintenance disregard also makes a significant contribution to tackling child poverty.