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Treasury

Answer

Mr. Clappison: To ask the Chancellor of the Exchequer, pursuant to the answer of 5 February 2002, Official Report, column 851W, what the value was of the 18 penalties imposed as a result of allegations of WFTC/DPTC fraud made via the anti-fraud hotline; what the value was of the 530 recoveries; if the two prosecutions resulted in convictions and what the sentence received in each case was; and what the cost is of (a) the benefits anti-fraud hotline and (b) the childminder's hotline in 2001-02. [37583] Dawn Primarolo: The NAO report into the Inland Revenue's accounts for 2000-01 confirms that inquiries were thoroughly appropriately followed up. Of the cases referred to in my answer of 5 February, 2002, Official Report, column 851, penalties of around £10,000 were imposed in the 18 cases which resulted from allegations to the national benefit fraud hotline about working families tax credit (WFTC) and disabled persons tax credit (DPTC) applicants. In addition, approximately £743,000 of tax credits is recoverable in relation to the 530 cases. Both of the prosecutions referred to resulted in convictions. The individuals convicted were given a two-year conditional discharge and 50 hours community service respectively. Based on figures to date for 2001-02, the Department for Work and Pensions estimates the total annual cost of running the national benefit fraud hotline at £816,000 and the estimated annual cost to running the childminder's hotline for WFTC and DPTC applications during 2001-02 at around £1,000.

Secondary information

Type

Written question

Reference

37583; 384 c878W;384 c877-8W

Session

2001-02

Subjects

Abuse Applications Costs Convictions Disabled persons tax credit Childminding Fraud Fixed penalties Prosecutions Social security benefits Welfare tax credits Repayments Telephone services Working families tax credit

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk