HC Deb 19 December 1994 vol 251 cc932-3W
Ms Harman

To ask the Secretary of State for Social Security (1) how many people are employed by his Department to deal with fraud in relation to people who are falsely claiming to be unemployed;

(2) what is his estimate of the cost to his Department of organised fraud relating to benefits for the unemployed;

(3) if he will make a statement on benefit fraud among people who are claiming benefits as unemployed and failing to declare income from (a) casual work and (b) full-time work;

(4) what is his estimate of the number of people who are claiming benefits on the basis of being unemployed despite being in full-time work;

(5) what was the estimated cost of fraud in benefits for the unemployed in each year since 1978–79 (a) in total and (b) for each specific category of benefit;

(6) what is his estimate of the number of people claiming benefits as unemployed, who are failing to declare income from (a) casual work and (b) full-time work.

Mr. Arbuthnot

The number of claimants receiving benefit as unemployed while failing to declare income from work, and the costs of these frauds, are not known.

We have estimated that 60 per cent. of all fraud involves misrepresentation of a claimant's financial circumstances. This includes, for example, income from investments and savings as well as undeclared income from employment.

The Benefits Agency employs over 3,000 staff, combating fraud of all types, whether committed by an individual or by organised teams. Last year—1993–94—312,000 irregularities were identified and a record £654 million of fraud was detected.

My right hon. Friend, the Secretary of State for Social Security announced recently the investment of £300 million, over the next three years, in measures to prevent and deter fraud, and to improve further the effectiveness of investigations.