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The DWP's official estimates for benefit fraud for 2008 - 2009
are here.
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Expenditure
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Fraud
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Last measured
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| Income Support |
£8.8bn
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2.9%
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£250m
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Apr 08 - Mar 09
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Jobseeker's Allowance
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£2.9bn
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2.8%
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£80m
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Apr 08 - Mar 09
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Pension Credit
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£7.8bn
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1.5%
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£110m
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Apr 08 - Mar 09
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Housing Benefit
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£17.1bn
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1.5%
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£260m
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Apr 08 - Mar 09
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Instrument of Payment
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£10m
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Apr 08 - Mar 09
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| Disability Living
Allowance |
£10.6bn
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0.5%
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£50m
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Apr 04 - Mar 05
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Retirement Pension
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£61.6bn
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0.0%
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£0m
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Apr 05 - Mar 06
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Carer's Allowance
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£1.4bn
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3.9%
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£50m
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Apr 96 - Mar 97
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Incapacity Benefit
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£6.6bn
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1.0%
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£70m
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Apr 08 - Mar 09
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Interdependencies
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£10m
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Apr 08 - Mar 09
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Unreviewed
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£14.7bn
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0.7%
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£90m
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Council Tax Benefit
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£4.2bn
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1.3%
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£50m
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Apr 08 - Mar 09
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These latest figures take the DWP's central estimate of benefit
fraud up from £860m six months ago to £1.1bn, with a
range of £0.9bn to £1.5bn. Income support fraud is up
£30m, pension credit fraud up £20m, housing benefit
fraud up £50m, incapacity benefit fraud up £60m, and
council tax benefit fraud up £10m. Fraud in the unreviewed
category is marked down £20m - a net increase of £150m.
For instance, The government itself claims
that benefit fraud by the relatively few claimants living abroad
is running at £63m a year. That would reduce benefit fraud
by people living in the UK to some £1.04bn.
On top of all this, a very
conservative estimate for tax credit fraud would be £250m.
And the National Fraud Initiative identified probable fraud in
council tax single person discount at a "cautious" £200m.
The DWP have edged their figure up from £40m to £50m.
In Lambeth, use of voice recognition software identified over 18%
of claimants as benefit cheats. As shown above, the government's
national figure for housing benefit fraud is £260m (up from
1.2% to 1.5%). At 18% this would be over £3bn for housing
benefit fraud alone!
The government figure for incapacity benefit fraud has leapt from
£10m to £60m but it's
still laughably small. One single sentencing session for single
person benefit frauds in Merseyside identified
frauds approaching £1m. That's just 21 claimants for one
type of benefit in one authority area.
Two
out of three claimants for the new employment and support allowance
fail. If we cautiously assume that even one third of those on
incapacity benefit should not be there, that alone represents a
figure of £2.2bn.
How would cautious adjustments affect the benefit fraud total?
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Government total
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£1,100m
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Tax credit fraud - add
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£250m
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Council tax single person discount fraud - if total £150m,
add
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£100m
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Housing benefit fraud - for a cautious 5% fraud rate add
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£600m
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Incapacity benefit fraud - for a cautious 25% fraud rate
add
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£1,584m
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Swansea council estimated that benefit fraud costs around £100
a household each year - over £2 billion nationally. Fraud
Central - a partnership of the DWP and four scottish councils -
remarkably says
that "Benefit Fraud costs upwards of £2 billion per year".
And it points out that
"Benefit Fraudsters not only affect Social Security benefits,
they can have free prescriptions, free eye tests and free dental
treatment costing the NHS millions of pounds per year."
But the truer figure - for benefit fraud alone - now looks closer
to £3.5bn a year.
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