Fraud and Abuse (Hansard, 6 May 1981)

§ Mr. Patrick Jenkin

In February 1980 the Government announced—[Vol. 978, c.710–11 ]—their intention to take firmer measures to counter social security fraud and abuse. The problems giving rise to concern were mainly the fraud of claiming benefit as an unemployed person whilst gainfully employed, wilful failure to take up job vacancies, and failure to maintain dependent members of families who then had to claim supplementary benefit. The Government therefore announced that they would use 1,050 additional staff to investigate these problem areas.

The House was promised—[Vol. 981, c. 1155–59 and Vol. 989, c. 371]—that a statement on the results of those measures would be made as soon as possible after the end of the 1980–81 financial year. I can now give the House this information.

We estimate that, during the 1980–81 financial year, the employment of 1,050 additional specialists saved over £40 million which would otherwise have been unjustifiably paid out by way of benefit. This figure does not include the additional savings made during the run-up to the campaign between September 1979 and March 1980, which are calculated as some £13 million. These savings are not of course the whole sum of my Department's efforts in this field. In total, DHSS staff working in this field who number about 5,600 saved the taxpayer and contributor some £170 million during 1980–81.

This is a satisfactory result and owes much to the dedication and expertise of my Department's specialist staff. No new investigation procedures have been introduced, and we have throughout been careful to ensure that there has been no departure from the standards of conduct laid down in departmental instructions, and the honest and the innocent have nothing to fear from the inquiries of our officials. None of the safeguards against the use of unfair pressure has been relaxed—some are indeed being strengthened. Fundamental safeguards are provided for all claimants by the system of independent adjudicating authorities and appeal tribunals.

Helping genuine claimants to get their benefits remains the main function of the social security organisation, and we have fully maintained it. The reduction of fraud and abuse helps to ensure that money can be made available for those who really need it.

In view of the outcome of this campaign the Government are continuing broadly the same level of commitment to measures against social security frauds and abuse.

I shall shortly place a fuller statement about these matters in the Library of the House.