23 January 2008 – Hain steps up fight against benefit theft

New powers to stop benefit fraudsters in their tracks are announced today by Secretary of State for Work and Pension, Peter Hain.

From March DWP fraud investigators will use information held by credit reference agencies to pinpoint benefit cheats who are living together but claiming to be single for benefit purposes.

Launching the initiative, Peter Hain said:

“We have had great success in cutting benefit fraud by more than half since 2000, as the NAO has recognised today, but we know that thieves are intent on stealing money from those most in need.

“We have identified areas that require immediate action. Living together fraud is now the single largest element of fraud in income support and we aim to make significant savings by stopping these cheats.

“We already use data matching services with banks, utility companies and others that identify £24 of fraud for every £1 spent. By extending this to credit reference agencies we can further reduce the amount of fraud, ensuring cash goes to those who really deserve it.

“We are determined to stop this disgraceful and shameless theft.”

Data matching pinpoints areas where fraudsters’ circumstances are clearly different to those declared on their benefit claim, for example their level of income or the amount they have in savings.

Responding to today’s NAO report on tackling benefit fraud, Peter Hain said:

“I am pleased that the NAO have recognised the considerable steps we have taken to slash benefit fraud by more than half. This is testament to our hard work especially since fraud wasn’t even measured before 1997. The new measures I am announcing today will ensure that even the most determined fraudsters will find the net closing in on them.”

Notes to editors

1. The report issued today by the NAO – Tackling Benefit Fraud – recognises that the amount of fraud has been reduced from £2bn in 2000/01 to £800m today. The NAO report is available on the NAO website
2. The report also notes that the amount of money recovered from benefit fraud and error is up by 30% from £144m (April-November 2006) to £184m (April-November 2007).
3. Most recent figures for recoveries from Housing Benefit fraud and error amounted to £300m
4. The NAO also point out that the DWP is ahead of other comparable countries in its measurement and understanding of benefit fraud.
5. The plan to data match with credit reference agencies follows the completion of a successful pilot. The pilot was announced in the DWP fraud strategy published in October 2005.

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