Minister reports increase in benefit fraud to £233m in Northern Ireland

Benefit fraud in Northern Ireland has climbed from 163 million to 233 million in recent years, according to Communities Minister Gordon Lyons. He also disclosed that annual errors made by the government cost 40 million, while mistakes by claimants add up to 75 million, bringing the total financial impact to 350 million.

The minister highlighted that previously, money recovered from fraud investigations was returned entirely to the Treasury, creating little motivation to invest in tackling fraud. However, the Treasury has now agreed that Stormont can retain a portion of recovered funds if it strengthens its anti-fraud efforts.

Lyons emphasized that these figures are very robust estimates based on data from the Department for Communities (DfC) and the UK Department for Work and Pensions. He clarified that the department does not intend to target individuals making minor errors.

The total 350 million represents approximately 4% of Northern Irelands overall benefits expenditure. Speaking on BBC Radio Ulsters Good Morning Ulster programme, Lyons noted that while this may appear a modest sum, effectively addressing benefit fraud and retaining a share of Westminster funds could have a significant impact. He added that an investment of 10 million in fraud prevention could potentially recover around 50 million, which would be shared with the Treasury.

The DUP minister reiterated that the focus is on those who deliberately misrepresent their circumstances to claim funds they are not entitled to, rather than on individuals who make unintentional errors.

Lyons stated that the DfC get it right 99.3% of the time, yet acknowledged that errors still occur. He expressed confidence that improved funding for anti-fraud measures would demonstrate a clear financial return.

Plans are also being considered to publicly identify benefit fraudsters, while educational initiatives could help reduce accidental errors in benefit claims.

Author: Sophia Brooks