§ Mr. CryerTo ask the Secretary of State for Social Security what is the estimated amount of money claimed fraudulently from his Department in 1991; what is the basis of the estimate; and what action he has taken to recover the estimated amount.
§ Miss WiddecombeThe total sum claimed fraudulently from the Department is not known. The Benefits Agency640W has a target which is based on detected fraud. In 1991–92 £427 million was estimated to have been saved. This estimate is derived from
- (1) the calculation of the weekly amount of benefit being claimed wrongfully when action by fraud investigators put a stop to the fraud or irregularity;
- (2) the conversion of this weekly amount to an estimated overall saving;
- (3) the actual value of benefit saved by the termination or prevention of an instrument of payment irregularity.
The multiplier used for item 2 was 32. This was based on the estimated average number of weeks the fraud would have continued had fraud staff not stopped it.
The Benefits Agency pursues vigorously the recovery of overpayments of benefit from those who cheat the system. In appropriate cases criminal or civil proceedings will be instituted.