Fraud and error cost NI taxpayer £120m

Social welfare fraud and error in Northern Ireland cost the taxpayer more than £120 million last year, according to a report …

Social welfare fraud and error in Northern Ireland cost the taxpayer more than £120 million last year, according to a report from the North's Comptroller and Auditor General.

The report notes general improvements in accounting at the departments that run Northern Ireland but points to an "unacceptably high" degree of financial loss at the Department of Social Development.

"The Department estimates that in 2002-2003 there were losses in income support, jobseeker's allowance, disability living allowance and housing benefit as a result of errors by officials and errors by customers and fraud amounting to £120.9 million, which is 7.6 per cent of expenditure on these benefits," the reports says.

The overall figure was broken down to show fraud and error in terms of disability living allowance of £43.6 million; £37.5 million in income support; £27.9 million in housing benefit; and £11.9 million in jobseeker's allowance.

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The report is also critical of the Department's financial controls and monitoring of expenditure in relation to grants to voluntary and community groups.

It describes the controls as inadequate and in particular highlights weaknesses at the Department's Belfast Regeneration Office, European Union Unit, Regional Development Office, North West Development Office and the Voluntary and Community Unit.

It focuses on the Local Enterprise Development Unit (LEDU) and how it funded the Into the West company, which promoted economic development in Tyrone and Fermanagh.

Into the West was criticised for the misuse of company credit cards and making cash-in-hand payments to local councillors for expenses.

The investigation team found there had been "very poor standards of administration".

The SDLP's Mr John Dallat, a former member of the Assembly's public accounts committee, said he was disappointed with the report's findings, particularly in relation to urban regeneration and community development.

Mr Dallat said that when the Assembly was restored he would be anxious to recall the department before the Assembly accounts committee to explain why such problems remained.