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Benefit Fraud Just 0.7 Per Cent Of Welfare Budget

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Commenting on figures published today (Thursday) by the Department for Work and Pensions, which show that benefit fraud accounts for just 0.7 per cent of the welfare budget, TUC General Secretary Frances O'Grady said:

'People have been brainwashed into believing that the benefits system is riddled with fraud. In fact it accounts for just 0.7 per cent of the welfare budget and that proportion is not increasing.

'While benefit fraud is a problem, these figures show there is a significant issue with underpayment too, with one in ten housing benefit claimants being underpaid at a time when living costs are soaring.

'Instead of seeking to demonise those on benefits, ministers should be getting tough on tax-evading companies who are cheating the Treasury out of £25bn a year.'

Polling carried out by the TUC in January, showed that on average people think that 27 per cent of the welfare budget is claimed fraudulently. The government's own figure is 0.7 per cent.

Nothing will change until the UK starts making politicians accountable to the electorate for their persistent and morally reprehensible pilfering of the public purse.

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Nothing will change until the UK starts making politicians accountable to the electorate for their persistent and morally reprehensible pilfering of the public purse.

"Benefit Fraud Just 0.7 Per Cent Of Welfare Budget" ? !

Could this "0.7" number have anything to do with how narrowly they define "fraud"??

Besides, wouldn't benefit "abuse" bring us a much higher number??

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"Benefit Fraud Just 0.7 Per Cent Of Welfare Budget" ? !

Could this "0.7" number have anything to do with how narrowly they define "fraud"??

Besides, wouldn't benefit "abuse" bring us a much higher number??

spot on.

Or the fact that it is perfectly legitimate, and no abusive to claim benefits for a "disability" that does not prevent you from working or have any impact on your earning potential.

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Guest eight

"Benefit Fraud Just 0.7 Per Cent Of Welfare Budget" ? !

Could this "0.7" number have anything to do with how narrowly they define "fraud"??

Besides, wouldn't benefit "abuse" bring us a much higher number??

Yep. There's no need to defraud something that pays out so generously in the first place.

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Yep. There's no need to defraud something that pays out so generously in the first place.

It is very generous and I wonder whether it is not just bad for tax payers but for the recipients too. I know of several DLA and incapacity claimants and their career option of welfare leaves them depressed and constantly anxious about the knock on the door from Atos. Most of these claims are borderline and indeed there will be millions of more disabled people that just get on with it and work for low wages outside the benefit system. My guess is that they are happier.

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It is very generous and I wonder whether it is not just bad for tax payers but for the recipients too. I know of several DLA and incapacity claimants and their career option of welfare leaves them depressed and constantly anxious about the knock on the door from Atos. Most of these claims are borderline and indeed there will be millions of more disabled people that just get on with it and work for low wages outside the benefit system. My guess is that they are happier.

+1

it must be soul destroying to have no ambition, no hope and no future except more of the same. On the other hand, there are those who are 'born victims' and expect someone/them to look after them as they are either incapable or unwilling to take some form of self-responsibility. One has only to look at the paralympics/inspirational stories where those 'disabled' have just got on and done something with their life.

there is also the question over the statistic of 0.7% fraud which are only those known about which result in prosecution. Many more are hidden/bending of the rules that do not result in fraud prosecution.

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The figure must depend on how good they are in assessing the credibility of claims (ongoing and new claims). So they're claiming that they're quite good at it because the amount they discover is a small percentage but on the other hand if the real per cent is actually much higher then they're not that good at it.

Even so if their figure of 0.7 per cent is nearly 1 in 100 and in total will amount to a huge sum of money.

They'll all be jumping on the bandwagon and patting themselves on the back as if the percentage discovered is the percentage that actually exists. They've got it under control see :rolleyes:

Edited by billybong

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The figure must depend on how good they are in assessing the credibility of claims (ongoing and new claims). So they're claiming that they're quite good at it because the amount they discover is a small percentage but on the other hand if the real per cent is actually much higher then they're not that good at it.

Even so if their figure of 0.7 per cent is nearly 1 in 100 and in total will amount to a huge sum of money.

The Atos interrogation chamber is the perfect place to appear unfit for work. A lady I know told me she went into severe heart palpitations and she passed with flying colours. Normally she is actually OK.

Edited by crashmonitor

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It is very generous and I wonder whether it is not just bad for tax payers but for the recipients too. I know of several DLA and incapacity claimants and their career option of welfare leaves them depressed and constantly anxious about the knock on the door from Atos. Most of these claims are borderline and indeed there will be millions of more disabled people that just get on with it and work for low wages outside the benefit system. My guess is that they are happier.

Another reason for a CI..

However, there would have to be some provision for the seriously disabled.

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Guest eight

The Atos interrogation chamber is the perfect place to appear unfit for work. A lady I know told me she went into severe heart palpitations and she passed with flying colours. Normally she is actually OK.

That's priceless :lol:

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The Atos interrogation chamber is the perfect place to appear unfit for work. A lady I know told me she went into severe heart palpitations and she passed with flying colours. Normally she is actually OK.

I know of someone who just turns on the waterworks at any interview. The interviewers buckle. Basically a drunken waster, but is now trying to get diagnosed as bipolar. Her family reckons there's nothing wrong with her.

This may not be classed as 'fraud' as defined but I reckon there are thousands of such cases.

Edited by deflation

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Is that chart simply a correlation between the GPB's money supply / waning purchasing power and nominal cost of benefits though?

Post WWII the average annual UK salary was perhaps £350 pa.

It's described as "real terms increase" so no.

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It's described as "real terms increase" so no.

Even if you adjusted for wage growth in real terms the starting point would be about 30 billion as opposed to 10 billion. So whichever way you spin it, welfare is massively higher now.

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Is that chart simply a correlation between the GPB's money supply / waning purchasing power and nominal cost of benefits though?

Post WWII the average annual UK salary was perhaps £350 pa.

It says "real term increases", meaning adjusted for inflation.

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It says "real term increases", meaning adjusted for inflation.

Fair enough.

However, this chart proves nothing other than its a nicely designed.

Here is another pretty chart with similar curve.

UK-private-debt-chart-ONS1.jpg

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The graph is a bit confusing - does it include pensions which accounts for about half the welfare bill?

UK Government Spending - Year 2014

According to this

Pensions - £144.6b

Welfare* - £115.2b

*of which

Family and children - £18.3b

Unemployment - £9.2b

Housing - £1.3b

Social exclusion - £28.5b

Social protection - £57.9b

Not sure what the last two are; thought that housing benefit was in the region of £22b ?

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nice to have a graph like that, but what about the amount of money given to the government ie government income that 's been on the rise as well, now overlap both and you might find out that there hasn't been any increase in welfare like the Mps have been telling people.

Edited by crash2006

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It doesn't matter if there is abuse or not. It's always a good idea to bash the poor and redistribute wealth form the lower classes to the richest. Worst come worst you can always blame the foreigners.

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How on earth do they know that fraud is 'only' 0.7%? Which is still a hell of a lot of money by most people's standards, though maybe not to the people gaily used to spending/wasting oceans of taxpayer money.

If they knew about the fraud it would surely be stopped, so it must follow that there must be a certain amount they don't know about.

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Fair enough.

However, this chart proves nothing other than its a nicely designed.

Here is another pretty chart with similar curve.

UK-private-debt-chart-ONS1.jpg

Interesting similarity. I think you are right, they are somehow related, despite measuring different things (benefits and debt), and using different units (£ and % of GDP). The credit bubble was feeding the whole economy, including increasing government revenues and spending.

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The graph is a bit confusing - does it include pensions which accounts for about half the welfare bill?

(...)

I think so. At over £200bn I think it must include pensions.

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