21 May 2004

Pension and benefit fraud totals £53m

A new report has revealed that the amount of fraud and official errors in pension and benefit payments in Northern Ireland totalled over £53 million last year.

The figure, which includes over £39 million lost on Retirement Pensions and Bereavement Benefit, comes despite counter measures being introduced to combat such problems.

National Audit Office head, Sir John Bourn said he would examine such counter measures as part of the next audit.

"I have qualified this account because of high levels of estimated fraud and official error in the payment of benefits from the Northern Ireland National Insurance Fund," Sir John said. "I note the measures being taken by the Department to reduce fraud and error, and will review progress as part of my audit of the 2003-04 account to see whether the desired outcomes are being achieved."

Responding to the report, a spokesperson for the Social Security Agency said benefit fraud and error was a priority area for the Agency and that they were currently reviewing their processes.

"The benefit system is complex and many of the most vulnerable people in our society depend on its support," the spokesperson said. "It is important to ensure that everyone gets the support to which they are entitled, while at the same time ensuring that all necessary measures are taken to detect and prevent fraud and error.

"The Agency has already improved its ability to identify inaccuracies in the system and we are improving our systems, procedures and training, as part of a major modernisation programme."

The Social Security Agency said it was now considering how best to implement the recommendations in the National Audit Office report.

(MB)