New measures to tackle benefit fraud

dwplogoThe government is undertaking steps apparently in a drive to curb benefit fraud. A £50 “civil penalty” will apparently be imposed on anyone who gives any sort gives any false information while claiming benefits. Further a fine of up to five thousand pounds can be imposed without going to the court. A considerable involved in tackling benefit frauds. The cost of the new advertising campaigns alone cost about £1 million pounds, with a further £308millin for 2015 benefit fraud initiatives.

Some have queried the cost-benefit-analysis when considering £1.1 billion pounds is the cost of benefit fraud;

  • £1.6 billion pounds was underpaid to legitimate benefit claimants due to mistakes of either an official or the claimant himself.
  • £2.4 billion pounds was overpaid to claimants.
  • £0.8 billion was attributable to official error and 1.6 billion to the claimants’ error.
  • £2.1billion pound is the cost of undetected general insurance claims fraud.

In the year 2012-13, 85-89 year olds through their pension schemes fraudulently claimed about 20 million pounds. The Department of Work and Pension plan to invest about 308 million pounds to tackle frauds up to March 2015.

According to the HMRC, £35 billion pounds is the difference between the tax that should have been paid if the tax system worked as parliament and the tax that was actually paid. This figure has risen by £1 billion in the last year. However, according to tax research in the UK the true figure is close to £119 billion pounds.

Source: http://www.theguardian.com/society/shortcuts/2014/oct/21/-sp-benefit-fraud-in-facts-and-figures

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