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DWP: Understanding the behaviour and motivations behind customer fraud the recent expenses scandal
15 May 2009
A recently published DWP report Factors affecting compliance with rules: Understanding the behaviour and motivations behind customer fraud includes the following:
“The design of the benefits system probably enables some customers to hide behind the excuse of misunderstanding the system or being misinformed by benefits office staff” .
To tackle benefit fraud the report recommends that
- the benefits system is simplified
- easing the transition on and off benefit for people in temporary jobs
- raising awareness about what customers can report
One of the main findings was that “hardship is an important factor motivating people to commit fraud. The DWP could consider raising the limits on what can be earned without deductions from means-tested benefits.” In other words this means increasing the levels of Permitted Work Earnings Disregards. Read our Policy recommendations here
The report suggests that most fraud occurs with JSA claimants and yet the DWP have increased the Earnings Disregard for lone parents in upcoming pilots and yesterday announced that Housing Benefit disregards will align Incapacity Benefit and ESA benefit disregards, so effectively government isn’t giving with one hand and taking with the other, increasing the incentive to take up formal employment. Yet why not extend this disregard to JSA which is currently at £5, less than one hours minimum wage and hasn’t changed since 1988? Have your say below and read the full blog entry MP expenses scandal, Greed, not need here
One law for MPs another for the needy comments in the Observer last week - interesting that there are over a 100 comments on this with people calling for government to support struggling people living in poverty as opposed to MPs - http://www.guardian.co.uk/commentisfree/2009/jun/07/expenses-fraud-prison