Commenting on the Government’s decision to use ‘bounty hunters’ to tackle benefit fraud, Gabrielle Preston, Policy and Research Officer at Child Poverty Action Group said:
“Whilst we recognise there is a need to minimise benefit fraud, it is currently at an all-time low (less than 1% of claims).
“Tax credit overpayments are not the fault of the recipients; they have been introduced into the tax credit system where there is a change of income during the year. Recent changes to tax credit entitlement will make matters much worse.
“Administrative error remains a problem for families. A recent report from Work and Pensions Select Committee report, Decision making and appeals in the benefits system highlights the desperate need for fairer and faster decision-making to improve benefit delivery and take up.
“The system's complexity means £16bn is unclaimed by some of society's most vulnerable people. This initiative stigmatises the most vulnerable people and is likely to further reduce take up of much needed benefits and tax credits.
"The National Audit Office reports that around £40 billion tax payments are lost every year. Some calculate that the figure may be as high as £100 bn. The decision to focus on benefit rather than tax fraud is unfair, unjust – and makes little economic sense.
“If the Government is to meet its 2020 commitment to end child poverty, it must protect children whose parents are entitled to receive benefits and tax credits. It is unacceptable for politicians to inflame stigma and discrimination against some of the most vulnerable people in the country. The Coalition should take a lead in challenging myths about people who rely on the welfare system.”
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