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Finance

Benefit fraud reaches record levels

20/05/2008

Benefit fraud has risen 26 per cent to £140 million last year, according to government figures.

The Audit Commission exposed £4 million of jobseekers allowance fraud and £24 million in housing benefits overpayment over 2006/2007.

Over the year, there was also £6.4 million of pension payments made - after the death of the pensioner.

Overall, benefit fraud has cost the UK overall £450 million since 1996.

A new web-based database has helped in the detection of fraud, the Audit Commission said, and the higher figure can partly be attributed to a more successful approach in detecting fraud.

The database is also matching employees with their visa applications and led to 157 employees being dismissed over the year who were not entitled to work, the commission said.

The report has been published after a crackdown on benefit fraud, which is often missed as it simply goes unchecked.

In one instance, a man from Lincolnshire was found to be claiming council tax benefit, income support, incapacity benefit and disability living allowance - while running a fruit and vegetable stall.

In addition his wife was also claiming carer's allowance for looking after him. An investigation revealed he owned a convertible Mercedes sports car, had over £100,000 in savings and frequently enjoyed luxury holidays.

The authority has begun proceedings to claw back over £40,000 from the man.