15 Feb 2013

Tax credits fraud & error still huge at 8.1%

Tax credits are intrinsically open to fraud as they are administered remotely - another legacy of unlamented control freak Gordon Brown, who insisted on them being run through the Treasury rather than by the DWP.

Instead of cutting losses by £1.4bn as hoped, HMRC's two-year push on fraud resulted in savings of £500m. The rate was only cut to 8.1% and a total of £2.27bn was lost though fraud and error in 2010-11 alone.

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1 comment:

Anonymous said...

Far too easy for a self employed person to declare a very low income and watch the tax credits roll in. Do you think Universal Credit will be any better?

In April 2012 the rules changed so that a couple had to work 24 hours per week (not 16) to qualify for WTC - 99% of the claims I have dealt with had a increase in hours to the minimum requirement of 24 hrs. ALL working in small takeaways, cornershops, family run business. You would think that someone could spot the patterns of fraud and attempt to do something about it.