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Written question asked by Lord Harper (Conservative) on Tuesday, 2 February 2010, in the House of Commons. It was due for an answer on Friday, 5 February 2010. It was answered by Helen Goodman (Labour) on Tuesday, 16 March 2010 on behalf of the Department for Work and Pensions.


Social Security Benefits: Fraud

Question
To ask the Secretary of State for Work and Pensions how much and what proportion of known fraud debt stock was fraud debt her Department recovered in each of the last five years; and if she will make a statement.
Answer

The following table provides data on the value of Fraud classified benefit debt recoveries and the proportion of those recoveries against the Fraud debt stock. The information is only available from 2005-06.

Fraud classified debt recoveries (£ million) Proportion of recoveries against Fraud Debt Stock (percentage)
2005-06 16.7 6.1
2006-07 21.9 7.6
2007-08 24.7 6.7
2008-09 23.9 6.0
Source:
Shared Services Debt Manager via Business Objects computer system. This is based on available Management Information, and does not form Official Statistics.

Recoveries are now at an all time high. Since 2005-06, the Department has increased overall recoveries from £180 million per year to over £280 million.The NAO recognised our improved performance in its report 'Department for Work and Pensions, Management of Benefit Overpayment Debt', May 2009.As a result of the Department's Debt Management's strategy a greater proportion of outstanding fraud debts are being actively managed each year. Currently, for 90 per cent. of customers with fraud debts, repayment is either being made, being negotiated, or suspended due to inability to repay, e.g. in prison.We always pursue repayment. For income related benefits overpayment recovery is subject, by legislation, to a maximum rate of recovery. For other benefits the maximum deduction rate is set administratively at one third of the personal rate of the benefit or pension concerned. We will continue to recover this money over the coming years.


Secondary information

Type
Written question
Reference
507 c806-7W; 316098
Session
2009-10
Related items
Written Questions: Government Responses
Tuesday, 30 March 2010
Written questions
House of Commons
Subjects
Fraud Social security benefits
Contains statistics
Yes
Link
View this Written question on www.publications.parliament.uk