HC Deb 19 May 1986 vol 98 cc51-2W
Mr. Evans

asked the Paymaster General (1) how many of those presently claiming unemployment benefit he estimates are doing so fraudulently; and on what evidence this figure is based;

(2) how many self-employed people he estimates are claiming unemployment benefit fraudulently.

Mr. Lang

There is a good deal of public concern about the abuse of unemployment benefits and we have substantially increased the resources allocated to the detection of fraud. We do not know how many of those presently claiming are doing so fraudulently, nor how many self-employed people are claiming fraudulently, but in 1981 Sir Derek Rayner, in his report on payment of benefits to unemployed people, estimated the figure to be a minimum of 8 per cent.

Mr. Evans

asked the Paymaster General (1) if he will list the nine areas in which pilot schemes have been conducted by his Department's fraud teams into the extent of fraud by the long-term unemployed;

(2) if he will summarise the findings of his Department's fraud teams following the completion of nine pilot schemes looking into claims for benefit made by the long-term unemployed;

(3) how many people, previously claiming benefit as long-term unemployed, ended their claims when invited to interviews by members of his Department's fraud teams in each of their recently conducted pilot schemes.

Mr. Lang

Since 6 January the Manpower Services Commission has been operating pilot schemes to help long-term unemployed people in nine areas. The pilots were introduced for a six-month trial period and are still in operation. The nine areas involved are:

  • Billingham
  • Crawley
  • Dundee
  • Ealing
  • Huddersfield
  • Ply mouth
  • Port Talbot
  • Preston
  • Stoke

Contrary to recent press reports, the pilot schemes are not a fraud exercise and do not involve the Department's fraud teams. Their main purpose is to invite all those unemployed for more than a year to an interview with

Manpower Services Commission staff at which their employment difficulties can be discussed in detail and they can be offered a positive opportunity of some kind to help them back into employment.

In the period 6 January to 9 May, 3,738 people in the pilot areas have ceased to claim unemployment related benefits after being contacted by the Manpower Services Commission. The figures for each pilot area are as follows:

Number
Billingham 204
Crawley 320
Dundee 488
Ealing 409
Huddersfield 372
Plymouth 400
Port Talbot 402
Preston 428
Stoke 715
3,738

The pilots are not due to finish until the end of June, but the main finding so far is that 90 per cent. of those interviewed have been offered positive help in getting back into employment.

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