Tougher Benefit Fraud Move Leads To Row

A political row has followed a Stormont Minister's recent introduction of new, tougher laws to address the scourge of benefit fraud.

Following the launch of new, 'One Strike - and You're Out' laws to bar claimants from benefits if convicted of duping the system and claiming money they were not entitled to, the South Antrim Sinn Fein (SF) MLA, Mitchel McLaughlin has hit back.

He said that the Department of Social Development (DSD) Minister, Nelson McCausland - who represents the adjacent Belfast North constituency - should put as much effort into ensuring that individuals are properly informed about the benefits to which they are entitled and eliminating agency errors, "if he is genuinely interested in reforming the benefits system".

Mr McLaughlin's comments follow the DSD Minister McCausland's proposed new policy on benefit fraud.

The SF man (pictured) said that errors are responsible for far larger losses than alleged benefit fraud and said: "There is up to £350m of unpaid benefits presently being returned to the British Treasury.

"This is money which, if paid to those entitled to it would be getting spent in the local economy, sustaining local businesses and securing jobs," he said.

The SF MLA also said that developing a system of identifying those entitled to receive benefits would be of more use that "chasing an alleged £10m of benefit fraud."

However, this assertion was subsequently challenged by DSD officials on behalf of the DUP Minister who underlined that the actual amount of benefit fraud is double that amount - £20m, in fact.

Pay Day

But, Mr McLaughlin reinforced his call for more money to be paid out, adding: "This would be making a far greater contribution to removing people from the poverty trap than by threatening to push individuals and families into severe debt by stopping their entire benefits."

He said that the cost of the Minister's proposals would be better directed at making the benefit system more efficient.

He added this could be done by ensuring that clients receive their full entitlements and assistance to access 'upskilling' and retraining opportunities.

But again, a DSD spokesperson countered: "Providing 'upskilling and retraining opportunities' does not fall under the remit of the Department for Social Development."

She continued, adding: "The 'One Strike' regulations recently introduced will impact solely on those convicted of benefit fraud.

"DSD recognises that a number of people may not be claiming all the benefits to which they are entitled.

"However the Department has had a comprehensive benefit uptake strategy in place since 2005, which has resulted in additional Social Security benefits of over £37m being generated for people across Northern Ireland."

Rejecting the notion that "more could be done to ensure that clients receive their full entitlements" she added: "This year the Department has invested £1.3m into its 2011/12 Benefit Uptake Programme, which includes new and additional funding of £400,000 for two new strands of work."

But the republican politician insisted: "In the present economic climate of rising costs for everything from food to gas and oil more people are finding it impossible to live on benefits.

"While I accept that there are a minority of individuals who defraud the system the vast majority of people on benefits would prefer to be in employment and that is where the focus should be."

"Rather than penalise people on benefits it would be more prudent to give people more opportunities and advice on how they could legally subsidise their benefits while finding their way back into work," he concluded.

See: Benefit Frauds Lose Money - But Not Always

(BMcC/CD)