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Cameron promises crackdown on benefit fraud

PM promises new measures to tackle "outrageous" £5.2bn cost of fraud and error.

David Cameron will today announce an "uncompromising" crackdown on benefit fraud that could see tougher penalties for offenders and measures to encourage others to stop cheats.

The Prime Minister said reducing the £5.2 billion annual cost of fraud and error would be the "first and deepest" cut in public spending. Writing in the Manchester Evening News ahead of his latest PM Direct session, he said credit rating agencies could be used to help identify false claims.

He wrote: "At a time when we're having to take such difficult decisions about how to cut back without damaging the things that matter the most, we should strain every sinew to cut error, waste and fraud in our welfare system.

"Welfare and tax credit fraud and error costs the taxpayer £5.2 billion a year. That's the cost of more than 200 secondary schools or over 150,000 nurses. It's absolutely outrageous and we cannot stand for it."

He also promised new measures to recover "stolen" payments and to prosecute offenders.

"It's quite wrong that there are people in our society who will behave like this. But we will not shrug our shoulders and let them get away with it any longer. We will take the necessary measures to stop fraud happening in the first place, root out and take tough action against those found committing fraud and make sure the stolen money is paid back.

"I have asked Iain Duncan Smith to draw up an uncompromising strategy for tackling fraud and error which we will publish in the autumn."

Tags: Politics News

13 comments

Nick9's picture

Cameron and Clegg should be lined up and shot before they do any further damage. This attack on the less well to do has gone far enough. I speak from experience; dealing with welfare benefits on a daily basis for a good few years.

Cameron's plans will costs far more than they save, the victims will be people who are wrongly 'shopped' by malicious people with axes to grind; usually out of some kind of family feud. The use of Experian and Equifax credit information databases is wholly dangerous as it often contains incorrect information which could show an association between two people which does not relate to the reality of their living arrangements. DWP and Local Authority fraud investigations are often exorbitantly expensive and badly carried out by tin pot officials who have their own idea of justice. Little is said of the subsidies they receive for each 'fraudulently' classified overpayment. The technicalities of the benefit system will mean that many more people will end up being criminalised for 'technical' offences which this lot promised to decriminalise. People will appeal in their droves against poorly prepared cases brought by the DWP, they will cost a fortune to sort out. It's an absolute recipe for disaster.

Cameron is simply daft to talk of a 'unified' benefit for all, it just shows how little he knows about the system. For each benefit you already need to answer a multitude of questions, a universal benefit would require the completion of a claim form akin to some hugely complicated technical manual! The repeal of existing claimant's rights would take an age, it's a legislator's worst nightmare.

To use more private contractors to wreck people's lives is abhorrent. The real criminals of society will remain untouched because they know how to avoid getting caught, it's the innocent who will suffer.

David Laws gets away with 40k of fraud (indeed even gets labelled 'honourable' in doing so) whilst this lot condemn those that are least able to stand up for themselves.

I detest this coalition for all it stands for and truly hope it rots in hell. Cameron is getting dangerous now with his lack of experience and desire to appeal to those whose idea of a benefit cheat is so often grossly misconstrued by the media. The effect this will have upon law abiding citizens of society should not be underestimated.

Big society man is out of his depth and not so brave when it comes to taking on the people who really do bleed this country of millions.

This lot needs outing before the true cost is felt.

This shameful coalition's pledge to pay more regard to people's civil liberties by abolishing ID cards, CTV cameras, even speeding cameras is now laughable and arguably discriminatory. If you dare claim benefits, you can now expect your bank and credit account accounts to be trawled on a match site with the DWP; it's disgusting and hugely dangerous when monitored by paid private 'spies' on commission by the DWP.

How come it's not being suggested we do the same with MP's and so forth?

Cameron is hell bent on screwing people out of their jobs, forcing people off benefits through sheer fear of their every move being watched; are we now to expect a huge increase in beggars and tramps?

Be warned though; the biggest single DWP expense is on pension related benefits by far. It may be benefit cheats today, but next it'll be our older folk; love to see how Clown Cam tackles that one!

Ed Sproul's picture

I hope this "publicity" stunt backfires on the con/libs . The return and loss to the exchequer re so called benefit cheats is very small compared to the loss of Revenue by this government in it's last giveaway budget to the well off .
It gave the means to the well heeled only to pay tax at 10% on rolled up earnings of up to £5million.
Some of us are in it together more than most.
i't's the poor the disabled and disadvantaged that's paying the most for the public spending cuts

Nick's picture

Ed Sprout: I'm not supporting benefit fraud for one minute but what is inherently wrong with the way this coalition, is it's inherent wish to condemn the poor, disabled and disadvantaged. I'd love to see how Cameron and his Clegg manage for a few weeks on benefits.

Some people, for instance; may end up losing their job through no fault of their own, suddenly they can't pay the mortgage, meet the bills, they are forced into a situation where they wrongly take cash work to keep pace; often it's a relatively low amount. These people would not do this if they were not forced into impossible positions. But they are 'benefit cheats'.

The benefit system punishes people for claiming as couples by providing a reduced amount when compared to two single claimants; where's the justice in that?

Now whose the real crook, the one I've just mentioned or the bank bosses who accept huge bonus's for ripping off customers with disgustingly high interest rates, charges and selling wholly inappropriate lending products, not forgetting the whole host of 'honourable' MP's who fiddled their expenses and got off scot free?

alan's picture

I think Nick's 2 superb posts sums everything up i have to say

Minus a couple of hefty swearwords of course.

Nick's picture

I attended a meeting yesterday with the DWP; only one of three local authorities invited being present. They are as critical of these 'reforms' as most of us that work with the system. This foolish coalition talks the talk, but pays no heed to the evidence. The reality is the DWP and LA's are also having to cut their staff; thankfully that includes over zealous fraud investigators. They will never, in a month of Sundays, cope with Cameron's extra work load; this being the man that pledged to cut bureaucracy!

As Richard correctly says it will be claimant groups such as lone parents who will get hauled over the coals. Fool Cameron talks enthusiastically about using database technology to catch people out. Shame the idiot doesn't realize that the vast majority of over payments are caused by reassessment of people's tax credits and changes in other benefit income. Tax credits are on the whole assessed annually and not aligned with other benefits which are assessed on a week by week basis. Instead of snooping on databases to detect so called crime, why oh why does no one realise that if each other authority such as the DWP, the HMRC, Pension Service and Local Authorities all talked to one another with their computerised technology, claimant error could be dramatically reduced. The technology could be used far more effectively for prevention rather than detection.

Truth is Local Authorities like their fraud subsidy payments too much, not to mention the way they can criminalise the innocent. The benefit rules are often wrongly used to classify two people as a living together couple when the reality is they are just boyfriend and girlfriend, many of them have homes of their own. Seemingly it's now almost illegal to have a relationship when on benefits for fear of how it will be perceived.

Cameron and Clegg just don't do their homework.

dee's picture

I am sick and tired of having to work,pay taxes etc. I live on a council estate where 70 percent of people do not work, yet i live near them. I go to work and struggle to pay bills. They on benefits have it so easy. THERE IS NO JUSTICE. Happy days for them they have no worries in the world. But for me it is stressful and so unfair

Richard's picture

Watch the news in the next few months to see the string of single mothers hauled before the courts to account for live-in boy friends or the extra £30 quid earned on the side. Count them against the insider traders and ponzi scheme city men and see if you can find a balance. There is more money stolen in one week in the city of London than ALL theft and robberies comitted by the poor in England for the last 20 years........shocked don't be!
There is not one multi millionaire alive or dead who can honestly say they earned every penny legally.
Grab the headlines and start a civil war in the pubs and clubs against the vermin they call the benefit scroungers, all to throw you off the scent of the real villains and rouges of the Tory voting scum that have taken control of this country.

hindle-a's picture

What is more outrageous is the many more billions left unclaimed or underpayments by the State to people ie.defrauding by the State of monies to which people are legally justified in receiving.

Eileen2's picture

Love the way you pick on the North-West to make this announcement, Mr. C; don't you have cheats in Witney to start with, buying big houses out of the taxpayers' pockets?

Spiller's picture

I wonder when they are going to crack down on the £40bn tax evaders or ask for the £150 bn from the banks back. That's quite a fe more nurses, doctors and police.
I agree that I as a taxpayer, wnt this money recovered but I'd prefer they didn't just pick on the poor fraudsters and go after the rich too!!

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