Press, The Benefit System, THINK TANK - The Ideas Zone....!!!, Welfare to Work

– Benefit fraud: The bounty hunters

The Coalition Government have appropriated the term “Bounty Hunters” to describe its approach to tackling benefit fraud.

David Cameron will announce that his “uncompromising” clampdown on benefit fraud will result in tougher penalties for offenders.

He will also announce the use of credit rating agencies to detect guilty parties. We understand that discussions have been had with Experian.

The prime minister outlines plans to claw back £5.2bn – this figure is incorrect.. see our previous report on fraud and error – lost through fraud and system error. The prime minister says that three-quarters of those caught defrauding the system are not currently prosecuted.

  1. There will now be “Tougher penalties for fraud,
  2. More prosecutions and
  3. a process to encourage those who know fraud is taking place to come forward.
  4. There will also be greater efforts to reclaim money that’s wrongly paid. The prime minister says this administrative incompetence, costs £1.6bn a year.

See the Prime Minister’s article

This is very interesting!!

It seems credit agencies will become even more powerful…. Surely in order for this to work, credit agencies will need further legislation to enable them to look into peoples personal affiars and to have access to previously private benefit details.

We understand that these companies will receive a ‘bounty’ payment of up to 5 per cent of the money they recover from fraudulent claimants.

Something needs to be done; but is this it I wonder?

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