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Benefit fraud investigations cost more than they recover

Benefit fraud investigations have cost more to carry out than the amount they have recovered
Benefit fraud investigations have cost more to carry out than the amount they have recovered Benefit fraud investigations have cost more to carry out than the amount they have recovered

BENEFIT fraud investigations designed to return money wrongly claimed have cost more to carry out than they have recouped.

Almost £4.6m was recovered from investigations over two years, while £5.3m was paid out in salaries.

All money recovered from welfare fraud is paid back to the Treasury in London.

In 2013-14, almost £2.7m was spent on salaries, dropping to £2.4m last year.

However, the highest amount recouped in any year since 2012 was just under £2.3m.

The figures were released by communities minister Paul Givan in response to an assembly question by Green Party leader Steven Agnew.

The DUP minister said the figures for staff costs are "based on average salary rates" and "do not include management, support or other costs."

He also stressed that the amounts recovered relate only to specific years and "takes no account of ongoing recoveries in succeeding years."

"Also, the figures take no account of the deterrent effect of fraud investigation. This is better reflected in the overall level of loss through customer fraud and error in social security benefits, which remains at historically low levels of less than 0.7% of benefit expenditure."

Mr Agnew said the vast majority of welfare claimaints are genuine but the "real issue is the amount of error made by the department, leading to people receiving money they are not entitled to".

"That this money then has to be claimed back is inefficient and stressful for those who rely on the income.

"Of course fraud must be discouraged, but mistakes in the system must be minimised. The salary costs provided do not reflect the total cost of welfare fraud investigations, meaning the total cost will undoubtedly be higher."

The North Down MLA added: "Furthermore, the money recovered, which is less than the expenditure, goes to HM Treasury and so the costs incurred cannot be offset."

Last year the former Department for Social Development was criticised for spending almost £100,000 on a campaign warning people against benefit fraud.

Benefit fraud tip-offs rose by 10 per cent during 2014 to more than 5,100, although convictions dropped to a six-year low of 352.

The Social Security Agency said benefit fraud was estimated to have cost taxpayers in Northern Ireland £16m in 2013.