HL Deb 01 December 1993 vol 550 cc34-5WA
Earl Russell

asked Her Majesty's Government:

How many people are employed, at what cost, and for how much return, in the investigation of social security fraud.

Viscount Astor

The administration of benefit fraud is a matter for Mr. Michael Bichard, the Chief Executive of the Benefits Agency. He will write to the noble Earl with such information as is available.

Letter from Mr. Michael Bichard, Chief Executive of the Benefits Agency, to Earl Russell

As Chief Executive of the Benefits Agency, it is my responsibility to answer questions about relevant operational matters. I am therefore, replying to your recent Parliamentary question to Her Majesty's Government asking how many people are employed, at what cost, and for how much return, in the investigation of social security fraud.

From October this year I have established a new security Branch with a responsibility to ensure a co-ordinated and strategic approach to fraud and security matters, and to protect programme expenditure against fraud and abuse.

The Department of Social Security's strategy for combating fraud is based on three principles:

  • Prevention—minimising/eliminating opportunities for fraud
  • Detection—catching those who try to cheat the system
  • Deterrence—persuading potential fraudsters that it is wrong and not worth the risk

Along with their other duties, staff in many parts of the department and its agencies are concerned with fraud prevention. For example, the way in which claims for benefit are processed, or payments are made, can help to protect the system against abuse. Resources devoted to this general anti-fraud work are not separately identified.

However, figures for the specialist fraud commands within the Benefits Agency are available. At 31 March 1993, Benefit Investigation Services employed 2,837 staff in the prevention and detection of fraud and abuse. Organised Fraud, a specialist unit set up to investigate suspected organised fraud, employed about 240.

In the year ending 31 March 1993 Benefit Investigation Teams recorded total savings of £516 million, made up of weekly benefit savings of £491million, and instrument of payment savings of £25million, at a cost of £64.7 million. In the same period, Organised Fraud teams recorded total savings of £42 million at a cost of £7.7 million.

I hope you find this reply helpful. A copy will appear in the Official Report and a copy will be placed in the Library.