The government is talking tough on benefit fraud, but failing dismally in practice

Steve Webb, Liberal Democrat pensions and work secretary

The department for Work and Pensions claims there has been an 11% decrease in "fraud and error" since 1998 - and that the figure has fallen for the second half-year period in a row.

Minister for Work, Nick Brown, said: "This second substantial fall in fraud and error is further evidence that we are on the right track to combat benefit fraud.

"We have met our initial target for reducing fraud and error in Income Support and Jobseekers' Allowance by 10%, eighteen months ahead of the March 2001 deadline."

'Massaging figures'

But Liberal Democrat Work and Pensions secretary Steve Webb claims the government is massaging the figures by bundling benefit fraud figures with official errors.

When the two figures are separated out, Mr Webb claims, a different picture emerges.

The amount being swindled out of the Income Support budget - the 'safety net' benefit claimed by those who are not entitled to Jobseeker's Allowance - has remained at 5.6%.

In cash terms, this means that it has increased from �705m to �720m, Mr Webb claims.

'Exaggerated claims'

"The Government is making exaggerated claims about its so-called war on benefit cheats," Mr Webb said.

"Income Support is the most important benefit targeted by fraudsters, but no progress has been made in the last six months.

Recorded fraud has in fact risen from �705m to �720m.

"The figures show that the government is claiming success in meeting its targets because officials are making fewer blunders.

"Whilst this is welcome, it should not be used to used to cover up the fact that it is making very little progress on reducing actual levels of fraud.

"The government is talking tough on benefit fraud, but failing dismally in practice.

"It must stop making fraudulent claims about its own figures and take effective steps to beat the fraudsters."

Better detection

A spokeswoman for the department of Work and Pensions admitted that levels of recorded Income Support fraud had gone up.

The benefit is often claimed by single parents, with fraud allegations centring on co-habitation, which is difficult to detect, she said.

However, levels of fraud in Jobseekers Allowance - which usually involves people claiming benefit while working illegally - had gone down by 0.9% in the past six months because it was easier to detect.

"The important thing is that we have met the target for reducing fraud and error by 10%, ahead of schedule."

Levels of fraud could go up over time because increasingly sophisticated detection techniques meant that inspectors were uncovering more of it, she added.

But the increase would be balanced out by a reduction in 'gateway' fraud, false or inaccurate details given in an initial claim, and errors by staff.

The Department of Work and Pensions is in the process of revamping its fraud investigation department.

It is setting up 14 intelligence units around the country, to gather information about benefit cheats, freeing up its investigators to spend more time in the field.