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Written question asked by Lord Beecham (Labour), in the House of Lords. It was answered by Lord Freud (Conservative) on Thursday, 28 October 2010.

Spending Review 2010

Question
To ask Her Majesty’s Government, further to the Statement repeated by Lord Sassoon on 20 October (Official Report, col. 838), how much of the estimated£5 billion lost through benefit fraud can be attributed to (a) fraud, (b) claimant error, and (c) administrative error.
Answer

The figure of £5 billion is a rounded figure. The estimate of monies lost to benefit and tax credit fraud and error is £5.2 billion. This is broken down as follows:

Benefits 2009-10
Fraud £1.0 billion
Customer Error £1.1 billion
Official Error £1.1 billion
Tax Credits 2008-09
Fraud £0.5 billion
Customer Error £1.6 billion

"Notes:""1. The figure for benefits is a preliminary estimate for 2009-10.""2. The figures for tax credits are central estimates for 2008-09 (the latest figures available).""3. There are no figures available for administrative error in tax credits.""4. When totalled, the individual elements shown in the table above total £5.3 billion. This is due to rounding.""5. HMRC is responsible for the delivery of tax credits" "1. The figure for benefits is a preliminary estimate for 2009-10.""2. The figures for tax credits are central estimates for 2008-09 (the latest figures available).""3. There are no figures available for administrative error in tax credits.""4. When totalled, the individual elements shown in the table above total £5.3 billion. This is due to rounding.""5. HMRC is responsible for the delivery of tax credits" "2. The figures for tax credits are central estimates for 2008-09 (the latest figures available).""3. There are no figures available for administrative error in tax credits.""4. When totalled, the individual elements shown in the table above total £5.3 billion. This is due to rounding.""5. HMRC is responsible for the delivery of tax credits" "3. There are no figures available for administrative error in tax credits.""4. When totalled, the individual elements shown in the table above total £5.3 billion. This is due to rounding.""5. HMRC is responsible for the delivery of tax credits" "4. When totalled, the individual elements shown in the table above total £5.3 billion. This is due to rounding.""5. HMRC is responsible for the delivery of tax credits" "5. HMRC is responsible for the delivery of tax credits" The latest estimates of fraud and error in the benefits system can be found at http://research.dwp.gov.uk/asd/asd2/fem/fem_oct08_sep09.pdf. The latest estimates of fraud and error in the tax credits system can be found at http://www. hmrc.gov.uk/stats/personal-tax-credits/cwtcredits-error0809.pdf.

Secondary information

Type
Written question
Reference
2983; 721 c330-1WA
Session
2010-12
Related items
Comprehensive Spending Review
Wednesday, 20 October 2010
Parliamentary proceedings
House of Lords
Subjects
Fraud Maladministration Social security benefits
Contains statistics
Yes
Link
View this Written question on www.publications.parliament.uk