§ Mr. CryerTo ask the Secretary of State for Social Security what is the basis of the calculation of sector fraud achievement of claimed savings of £491 million in weekly benefit and £25 million in instrument payment savings on page 15 of the document, "Fighting Fraud in 1992–93".
§ Mr. HagueThe administration of benefit fraud is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member with such information as is available.
Letter from Michael Bichard to Mr. Bob Cryer, dated 9 November 1993:
The Secretary of State for Social Security has asked me to reply to your Parliamentary Question about the basis of sector fraud's savings as published in Fighting Fraud.With regard to the weekly benefit saving, a multiplier of 32 weeks is applied to the amount of weekly benefit savings recorded as a result of successful fraud investigations or interventions. This single multiplier is currently applied to all benefits payable by the Department and reflects the anticipated average period for which claims could be expected to continue in the absence of a successful fraud intervention.Instrument of Payment savings are not subject to any multiplier and all such savings are recorded at face value.I hope you find this reply helpful.