The Guardian (London)
June 6, 1989
Changes in 'war' against social security fraud
BYLINE: By DAVID BRINDLE, Social Services Correspondent
LENGTH: 669 words
Key changes have been made in what is counted as social security fraud in a move which is expected to enable ministers to claim a big increase in the money recouped from so-called benefit scroungers.
The changes allow the 3,900 Department of Social Security fraud investigators to claim extra savings towards the cash targets they are set as a measure of cost effectiveness.
The department said yesterday that the changes were minimal and unlikely to have any significant impact on fraud totals. Some fraud officers, however, are reporting sudden increases in their performance.
Mr Bob Bruce, a fraud officer at the Redcar benefit office in Cleveland, told the recent annual conference of the National Union of Civil and Public Servants that the average 'weekly benefit savings' for each officer in his region in March had been Pounds 168.86.
In April, after the fraud guidelines were changed, his own figure had been Pounds 4,344.19.
Mr Bruce told the conference: 'I doubt if my performance improved that much over a four-week period.
'It is easy in these circumstances to thinks that fraud is everywhere, when in fact the vast majority of claimants are honest.'
Revision of the fraud guidelines is part of a bid drive by the DSS to give a higher profile to its fraud detection work. In past years, its achievements have been outshone by those of the Department of Employment, even though the latter recoups only a quarter as much money.
Ministers are expected to announce shortly that in 1988-89 the DSS comfortably beat its savings target of Pounds 240 million, set after savings of Pounds 196 million in 1987-88.
These totals are arrived at by multiplying recorded fraudulent claim savings by 32 to represent the average time the claim would have continued if undetected. This multiplier system is unchanged.
However, the revised guidelines loosen considerably the former restrictions on what a fraud officer should count as a saving.
They state: 'A benefit saving can be justified if there is sufficient doubt about the genuineness of a claim to lead to the conclusion that continuation of that claim would have resulted in a loss to public funds.'
This can pertain if an 'irregularity' - not necessarily proven fraud - has occurred.
Under the old guidelines, a saving could be counted only if it resulted 'directly from the efforts of fraud specialists'.
The new guidelines say that a saving should not be discounted merely because specialised fraud techniques were not required to achieve it. 'What matters is that action in some form must be taken by fraud staff, amounting to an intervention, eg., by telephone call, visit, interview or other inquiry, to terminate or prevent an irregularity.'
Similarly, while it was clear in the old guidelines that payment of benefit had to be stopped or reduced to trigger a saving, the new version allows officers to claim notional savings.
For example, an investigation may discover that the wife of a claimant is working part-time without him declaring her earnings.
If she then stops working, but the husband continues to claim full benefit, the officer can claim a saving equivalent to a notional overpayment.
In addition, changes have been made in the calculation of savings when fraudulent encashment of a Girocheque or order book is prevented.
Previously, Girocheques were not counted at all; now, the guidelines state that the face value is to be added in. Before, the value of only one weekly order was counted when a stolen book was retrieved; now, the entire book is taken into account.
The DSS said the only change of principle involved in the new guidelines was that relating to notional savings: other changes were at the margin or were clarifications of existing principles.
Ms Tess Gill, senior NUCPS officer for social security, said: 'This is deceit on the part of the department, trying to make the taxpayers think that they are saving more money than they in fact are.'