{"id":49789,"date":"2014-11-06T11:07:29","date_gmt":"2014-11-06T11:07:29","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=56df1219398084d2936460ba6787629a"},"modified":"2014-11-06T11:07:29","modified_gmt":"2014-11-06T11:07:29","slug":"press-release-overpayment-error-in-the-benefit-system-falls-by-100-million","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=49789","title":{"rendered":"Press release: Overpayment error in the benefit system falls by \u00a3100 million"},"content":{"rendered":"<div class=\"govspeak\">\n<p>The government expects the rate to drop even more with the introduction of Real Time Information (<abbr title=\"Real Time Information\">RTI<\/abbr>), introduced in August. <\/p>\n<p>This means benefit claims can now be cross-checked against earnings and pension income from HM Revenue &amp; Customs (<abbr title=\"HM Revenue &amp; Customs\">HMRC<\/abbr>) immediately after each payment they make. Previously this data was submitted annually.<\/p>\n<p>The statistics out today also show Jobseeker\u2019s Allowance fraud and error overpayments dropped to their lowest recorded level, having fallen by \u00a340 million in the last year.<\/p>\n<p>Total fraud and error in the benefits system stands at \u00a33.4 billion or 2.1% of overall welfare expenditure. Total overpayments due to claimant and official error fell from \u00a32.3 billion (2012\/13) to \u00a32.2 billion (2013\/14).<\/p>\n<p>Work and Pensions Minister Mark Harper said:<\/p>\n<blockquote>\n<p>Too much money has been needlessly wasted in the past on fraud and error, so it\u2019s good news that we\u2019ve brought down claim errors to a record low. Now thanks to our new IT advances, we will be able to track both fraud and error in record time.<\/p>\n<p class=\"last-child\">But there\u2019s more to do. We will use everything in our power to stop people who cheat the system stealing money from hardworking taxpayers, as part of our long-term economic plan to make a fairer welfare system.<\/p>\n<\/blockquote>\n<p>The data for 2013\/14 revealed that:<\/p>\n<ul>\n<li>benefit fraud is at \u00a31.2 billion or 0.7% of welfare expenditure<\/li>\n<li>claimant error overpayments have fallen to 0.9% or \u00a31.5 billion of spending<\/li>\n<li>official error overpayments have dropped to their lowest rate of 0.4% of benefit expenditure or \u00a30.7 billion<\/li>\n<\/ul>\n<p>In 2013\/14, the Department for Work and Pensions (<abbr title=\"Department for Work and Pensions\">DWP<\/abbr>) recovered nearly \u00a31 billion that had been overpaid due to benefit fraud and error across Great Britain, an increase of 30% over the last 3 years.<\/p>\n<p>Ministers launched a <a href=\"https:\/\/www.gov.uk\/government\/news\/campaign-says-no-compromise-in-crackdown-on-benefit-fraud\">major advertising campaign<\/a> last month targeted at nearly 50 towns and cities across the country to bring down fraud and error. A range of television and radio adverts, posters, letters and Facebook ads are being used in each region to urge claimants to report changes in their circumstances or risk a jail sentence. <\/p>\n<p>New rules were also announced this year to further deter claimants from committing benefit fraud and make sure stolen money is returned including:<\/p>\n<ul>\n<li>introducing tough new rules so that 40% of individuals\u2019 benefits can be taken to repay stolen cash \u2013 on top of any fine or custodial sentence handed out by the courts<\/li>\n<li>increasing penalties that someone committing fraud can receive from \u00a32,000 to \u00a35,000, without taking them to court<\/li>\n<li>using bailiffs to confiscate high-value possessions from convicted benefit fraudsters<\/li>\n<li>continuing to roll out Universal Credit to more sites, which is expected to reduce fraud by \u00a31 billion in 5 years when it is fully in place across the country<\/li>\n<li>extending the loss of benefit for offences which result in a conviction of 13 weeks for a first offence, then 26 weeks for a second offence and 3 years for a third offence<\/li>\n<li>issuing a new \u00a350 civil penalty for claimants who negligently give incorrect information on their claim or fail to report a change in circumstances which results in an overpayment<\/li>\n<\/ul>\n<p>Further analysis of individual benefits reveals fraud and error for:<\/p>\n<ul>\n<li>Jobseeker\u2019s Allowance fell to its lowest ever level \u2013 from 4.1% (\u00a3210 million) in 2012\/13 to 3.9% (\u00a3170 million) of expenditure in 2013\/14 \u2013 with claimant error reducing and fraud falling to its lowest rate since 2006\/07<\/li>\n<li>Pension Credit decreased to 5.9% (\u00a3430 million) of benefit expenditure in 2013\/14, from 6.4% (\u00a3490 million) the year before \u2013 and fraud, claimant error and official error have fallen<\/li>\n<li>Employment and Support Allowance is at 3% (\u00a3310 million) \u2013 this is the first financial year fraud and error has been reported<\/li>\n<li>Income Support is at 4.5% (\u00a3170 million)<\/li>\n<li>Housing Benefit \u2013 which is administered by local authorities \u2013 is at 6% (\u00a31.4 million)<\/li>\n<\/ul>\n<div class=\"call-to-action\">\n<p>Read the <a href=\"https:\/\/www.gov.uk\/government\/statistics\/fraud-and-error-in-the-benefit-system-2013-to-2014-estimates\">full statistical release on fraud and error in the benefit system in 2013\/14<\/a><\/p>\n<\/div>\n<div class=\"call-to-action\">\n<h4 id=\"report-suspected-benefit-fraud\">Report suspected benefit fraud<\/h4>\n<p>Call the National Benefit Fraud Hotline on 0800 854 440<\/p>\n<\/div>\n<h2 id=\"real-time-information\">Real Time Information<\/h2>\n<p>Real Time Information (<abbr title=\"Real Time Information\">RTI<\/abbr>) is the new system for collecting Pay As You Earn tax information from employers and pension providers, who are now required to provide <abbr title=\"HM Revenue &amp; Customs\">HMRC<\/abbr> with income details immediately after each payment they make. <\/p>\n<p>Fraud investigators have been using <abbr title=\"Real Time Information\">RTI<\/abbr> since August for claims of Jobseeker\u2019s Allowance, Employment and Support Allowance and Pension Credit where claimants have either failed to declare or under-declared earnings and occupational pensions. From this month it will be used to cut down on fraudulent claims of Housing Benefit.<\/p>\n<h2 id=\"contact-press-office\">Contact Press Office<\/h2>\n<p>Media enquiries for this press release \u2013 020 3267 5116 <\/p>\n<div class=\"contact postal-address\" id=\"contact_827\">\n<div class=\"content\">\n<h3>Press Office<\/h3>\n<div class=\"vcard contact-inner\">\n<p class=\"adr\">\n<span class=\"street-address\">Caxton House<br \/>\n<br \/>\nTothill Street<\/span><br \/><span class=\"locality\">London<\/span><br \/><span class=\"postal-code\">SW1H 9NA<\/span>\n<\/p>\n<div class=\"email-url-number\">\n<p class=\"tel\">\n              <span class=\"type\">London Press Office (national media and London area enquiries only \u2013 not questions about personal claims)<\/span><br \/>\n              020 3267 5144\n            <\/p>\n<p class=\"tel\">\n              <span class=\"type\">Out-of-hours (journalists only)<\/span><br \/>\n              076 59 108 883\n            <\/p>\n<p class=\"tel\">\n              <span class=\"type\">England and Wales (local media enquiries)<\/span><br \/>\n              029 20 586 then 097 or 098 or 099\n            <\/p>\n<p class=\"tel\">\n              <span class=\"type\">Scotland (local media enquiries)<\/span><br \/>\n              0131 310 1122\n            <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p>Follow <abbr title=\"Department for Work and Pensions\">DWP<\/abbr> on:<\/p>\n<ul>\n<li>Twitter \u2013 <a rel=\"external\" href=\"http:\/\/www.twitter.com\/dwppressoffice\">www.twitter.com\/dwppressoffice<\/a>\n<\/li>\n<li>Facebook \u2013 <a rel=\"external\" href=\"http:\/\/www.facebook.com\/dwp\">www.facebook.com\/dwp<\/a>\n<\/li>\n<li>LinkedIn \u2013 <a rel=\"external\" href=\"http:\/\/www.linkedin.com\/company\/dwp\">www.linkedin.com\/company\/dwp<\/a>\n<\/li>\n<li>YouTube \u2013 <a rel=\"external\" href=\"http:\/\/www.youtube.com\/dwp\">www.youtube.com\/dwp<\/a>\n<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Official and claimant error on benefit overpayments has fallen to the lowest ever \u2013 1.3% of welfare expenditure \u2013 down \u00a3100m last year.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/49789"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49789"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/49789\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}