Written question asked by Lord Barnett (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Tuesday, 9 November 2010.

Spending Review 2010

Question: To ask Her Majesty’s Government, further to the statement by Lord Sassoon on 20 October (Official Report, col. 831), whether the estimated saving of £5 billion currently being lost through ““fraud in the welfare system”” will be included in the total cuts in the deficit given in Spending Review 2010.

Answer: Existing deficit reduction plans are not dependent on the realisation of expected savings and revenues from these initiatives, but the Government are none the less committed to protecting taxpayers through the implementation of measures to consult welfare fraud and error. The Government set out their plans for tackling welfare fraud and error in the strategy document published by the Department for Work and Pensions and HM Revenue and Customs (HMRC) on 18 October, which set an ambition to reduce overall expenditure lost to fraud and error by a quarter by 2014-15. The Government also announced on 20 September that it will make £900 million available over the spending review period to raise additional revenues from those who undermine the tax system and seek to avoid paying their fair share. This has been estimated to bring in around £7 billion per annum by 2014-15 in additional tax revenues. Any impact on annually managed expenditure and tax receipts of these announcements will be considered by the Office for Budget Responsibility as part of its twice-yearly forecasts, on the basis of the latest available evidence.

Secondary information

Type: Written question
Reference: 3281; 722 c69-70WA
Session: 2010-12
Related items: Comprehensive Spending Review
Wednesday, 20 October 2010
Parliamentary proceedings
House of Lords
Subjects: Fraud Social security benefits
Link: View this Written question on www.publications.parliament.uk