Fraud and error: Is evidence based data the answer?

By Louise Freeth | 21 October 2015

The Department for Work and Pensions’ statistics for fraud and error within the benefits system in 2014/15 estimate that £3.2bn was overpaid, equating to 1.9% of its total expenditure. However, the figure within housing benefit is actually much higher, at 5.7% of expenditure. Of course, many claiming housing benefit also claim council tax reduction too.

Although the Department for Communities and Local Government are yet to produce figures on this, we can draw parallels with the Audit Commission’s figures into the financial loss attributed to single person discounts, where between 4% and 6% are fraudulently claimed.

It is plain to see that both central and local government must continue to focus on reducing or removing support for those who are not entitled to benefits. Local authorities have certainly, in the past, been used to tightening the gateway to prevent fraud and error entering the system. But the problem has been that with cuts in funding and changes in legislation, they have had little incentive to root out fraud and error once it is present in the system. However, with responsibility devolved for council tax reduction and the Fraud and Error Reduction Incentive Scheme now in place, local authorities have more reasons than ever to act.

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