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25 August 2005 - Fraud and error cut by over 40 per cent

Fraud and error has been slashed by 41 per cent as official statistics published today show DWP is on track to beat its target of a 50 per cent cut by 2006.

Fraud and error in Income Support and Jobseeker’s Allowance is estimated to be down from £920m to £780m - a saving of £140m, latest figures show.

Anti-Fraud Minister James Plaskitt said today:

"Our tough action against fraud and error is paying off for the taxpayer. We have improved data matching to catch people who work and claim and other tools in our armoury, such as, the benefit fraud hotline mean we are clamping down on fraudsters.

"Since 1997 we have saved the equivalent of over £1.3 billion on what DWP would have paid out if we had not achieved these good results.

"These official figures show that we have cut fraud in Income Support and Jobseeker's Allowance by well over 50 per cent.

"This shows we are getting results in preventing, detecting and deterring fraud. But we’re not complacent. We must maintain this hard work to achieve our target of cutting both fraud and error by half by 2006.

"Help from the public is important too. You can let us know if you suspect someone of committing fraud by calling the hotline or through the targeting fraud website. Fraudsters steal from the public pocket and take much-needed money away from frontline services.

"Our efforts in the future will focus on further development of our effective criminal investigation structure for fraud and strong controls on the day-to-day processing of benefit claims to stop fraud before it starts."

The estimated overpayment of Income Support and Jobseeker's Allowance at September 2004 was recorded as 6.1 per cent - the lowest ever recorded figure for loss in these benefits. The overpayment figure is down from 10.4 per cent of expenditure in 1997/98.

Notes for Editors

  1. The official statistics cover the period from October 2003 and September 2004.
  2. The target compares current performance to fraud and error levels in 1997/98. Over the years since the target was introduced the Department would have paid out £1.3 billion more, had over payments stayed at the same levels, if it had not acted robustly to cut fraud and error to current levels.
  3. The benefit fraud hotline number is 0800 854 440.

For more information contact Madeleine Jamieson on: 020 7238 0723
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Websites: www.dwp.gov.uk
www.targetingfraud.gov.uk