Welfare to Work

Billions lost due to complex benefit system

Billions lost due to complex benefit system

A report has found that as a result of complex benefit system £1.1 billion had been lost in fraud and £1.3 billion in claimant error.  

The statistics were revealed in the latest National Statistics Report.  The report revealed that 2.0 per cent of total benefit expenditure was overpaid due to fraud and error, down from 2.1 per cent in 2010/11.  It was further estimated that 0.8 per cent of benefit expenditure was underpaid due to fraud and error, no change from the previous year.  

Lord Freud argued that these latest figures outline why the new Universal Credit system must be introduced.

The welfare reform minister stated

“Universal Credit will dramatically reduce the chances of fraud entering the system and will cut down on error as it will be much easier to understand and administer.  It will also reduce the incentive for fraud by making sure people are better off in work than on benefits” 

The Universal Credit system will be introduced in 2013.

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