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PRESS RELEASE

29 April 2008

PR/15/07/08

BENEFIT ERROR AND FRAUD DISAPPOINTINGLY HIGH

The NI Assembly Public Accounts Committee (PAC) has found that, despite improvements in the performance of the Social Security Agency, levels of benefit error—both under and over payment and fraud - are still disappointingly high. The findings have been published in the Committee’s report on Social Security Benefit Fraud and Error.

Committee Chairperson John O’Dowd, MLA believes that much more can be done to reduce error and fraud as well as over and underpayment. He said, "The Committee recognises that the benefit system is inherently complex and that good work is being done by Agency staff to deliver services to their customers.

"However, we are concerned that almost half of overpayments are due to Agency staff error and that checks aimed at validating payments have, on occasion, incorrectly changed benefit entitlements.

"The Committee is also concerned that many people, in society who are entitled to benefits are not receiving their full entitlement; particularly the elderly and we encourage the Agency to ensure such people receive their full entitlements.

"The Committee welcomes the staff training and fraud awareness programmes that the Agency is introducing in response to a report by the Audit Office. We recognise the work being done by the Agency, as part of its counter fraud and error strategy, with the Public Prosecution Service to obtain more successful prosecutions.

"Finally, we expect that the Department and Agency should press for simplification of the benefit system and update the outmoded IT systems."

Notes to Editors

  1. Standing Orders under Section 60(3) of the Northern Ireland Act 1998 have provided for the establishment of the Public Accounts Committee (the Committee). The main statutory function of the Committee is to consider accounts and the reports by the Comptroller and Auditor General for Northern Ireland (C&AG) laid before the Northern Ireland Assembly.

  2. The C&AG is head of the Northern Ireland Audit Office (NIAO) and is empowered to investigate any area of expenditure and has a statutory right of access to all files and papers in Departments and public bodies.

  3. In 2006-07 £60 million was overpaid and £22 million was underpaid to Agency customers.

  4. Errors by Agency staff during 2006-07 resulted in £28 million of overpayments and £19 million of underpayments.

The PAC Committee members are:-
Mr John O’Dowd, (SF) Chairperson
Mr Roy Beggs, (UUP) Deputy Chairperson
Mr Trevor Lunn ( Alliance)
Mr Jonathan Craig (DUP)
Mr Simon Hamilton (DUP)
Mr David Hilditch (DUP)
Mr Ian McCrea (DUP) *
Ms Dawn Purvis (PUP)
Mr Mitchel McLaughlin (SF)
Mr Thomas Burns (SDLP)**
Mr John Dallat (SDLP)
* Mr Ian McCrea (DUP) replaced Mr Mickey Brady (SF) on the 21 January 2008
** Mr Thomas Burns (SDLP) replaced Mr Patsy McGlone (SDLP) on the 4 March 2008

Media enquiries to:
Debra Savage,
Information Office, Parliament Buildings, Belfast. BT4 3XX
Tel. 028 90521405 Mobile 07920 864221
Email: debra.savage@niassembly.gov.uk

Website archive.niassembly.gov.uk