Action urged on benefits cheats

Updated 08.59 Tue Jul 08 2008

Fewer than 7,500 out of 200,000 benefit fraudsters end up in court, according to new figures.

The House of Commons Public Accounts Committee revealed around 200,000 cases of potential fraud where the Department for Work and Pensions considered there was a high possibility of prosecution were investigated in 2006/7.

"Potential fraudsters will not be deterred if the department is not seen to be taking firm action where there is good evidence that fraud has taken place"

Only 7,483 of people were taken to court, though 90 per cent of prosecutions resulted in convictions.

A report by the cross-party committee said: "Potential fraudsters will not be deterred if the department is not seen to be taking firm action where there is good evidence that fraud has taken place."

It urged the DWP to continue to take a "firm and co-ordinated approach" on organised crime, which poses a "serious threat" to the benefit system.

The report welcomed progress in cutting benefit fraud from £2 billion in 2001/2 to £800 million in 2006/7.

But MPs said it was "unacceptable" that benefit overpayments due to error almost doubled from £1 billion to £1.9 billion over the same period.