§ Mr. HealdTo ask the Secretary of State for Work and Pensions what the levels are of(a) payments in 602W error and (b) fraud in respect of the Adviser Discretion Fund; and if he will make a statement. [88473]
§ Malcolm WicksThe Adviser Discretion Fund was introduced to give personal advisers more flexibility in the help they can offer their new deal clients. Advisers have the discretion to make awards from the fund, normally up to a maximum of £300, to pay for any goods and services needed to help an individual overcome the barriers preventing them applying for or taking up a job.
The Adviser Discretion Fund cannot be used: as a cash inducement to take up a job; to pay for things funded in other ways under the new deal; to pay for Criminal Records Bureau disclosure certificates; or once a client has taken up a job. Payments can be made in error if an adviser mistakenly makes awards for these purposes, or in cases where the total monetary value of the awards made to an individual exceeds £300 (without prior authorisation from the Jobcentre Plus business manager). Information on the level of such erroneous payments is not available.
Since the launch of the Adviser Discretion Fund in July 2001, 56 allegations of fraud have been or are currently being investigated, involving a total of £10,921. This represents 0.03 per cent. of awards made and 0.07 per cent. of their total monetary value.