HC Deb 12 June 2000 vol 351 cc482-3W
Mr. Hancock

To ask the Secretary of State for Social Security what steps he is taking to ensure services to the customers of the Benefits Agency are delivered effectively and that benefits are secure against fraud and abuse; how much this costs; how many people are being investigated for fraud; and if he will make a statement. [124544]

Mr. Rooker

In March of this year, my right hon. Friend the Prime Minister announced the creation of a new organisation that will radically change the way the Government provide support for people of working age. The new agency will draw together those elements of the Benefits Agency which support people of working age and the Employment Service. The agency will deliver a single, integrated service to benefit claimants and employers. Information on job vacancies, training, and child care will be available as well as help and support to those who, for whatever reason, are not able to work, providing a more responsive service tailored to individual needs.

My right hon. Friend the Secretary of State for Social Security has also announced the creation of a single organisation responsible for pensions, distinct from the Benefits Agency. This new organisation will be solely focused on the needs of pensioners and pensions policy.

We are committed to improving and modernising the welfare services offered to people, and the creation of separate, client focused organisations is the next step to achieving this.

The prevention and detection of fraud will be at the heart of he new organizational arrangement. The Government set out the strategy for tackling fraud in the White Paper "Safeguarding Social Security" presented to Parliament in March 1999.

For the financial year 2000–01, £351,447,403 of Programme Protection Funds are being deployed within the BA to combat fraud and error. However all benefit paying processes and all the BA staff involved have a role in preventing and identifying fraud and abuse.

On 31 March 2000, 163,138 people were recorded as currently under investigation by the Benefit Fraud Investigation Service, while between April 1999 to March 2000 there were 436 individual suspects accepted for prosecution from the Benefits Agency Security Investigation Service.

In addition, between April 1999 and March 2000 there were in excess of 280,000 referrals for investigation identified by the datamatching computer systems; the Generalised Matching Service and the Housing Benefit Matching Scheme. This however includes cases of customer and official error as well as fraud.

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