A New Place Of Exile

Richard Hutton

Tag: disability

Disability benefit fraud costs the DWP £80 million. Error costs the disabled/incapacitated £340 million.

 Benefit fraud is classified as instances where all three of the following conditions are in evidence:

1) the basic conditions for receipt of benefit, or the rate of benefit in payment, are not being met;
2) the customer can reasonably be expected to be aware of the effect on entitlement; and
3) benefit stops or reduces as a result of the review.

During 2010-11, the fraud and error rate for disability living allowance was 1.9% (£220 million), of which fraud specifically accounted for 0.5% (£60 million). The fraud and error rate for Incapacity Benefit was 2.4% (£130 million), of which 0.3% (£20 million) was due to fraud. Put together, that’s £80 million. By contrast, official error costs £160 million.

However, Disability Living Allowance was underpaid by £300 million: £290 million of which was due to customer error; whilst incapacity benefit was underpaid by £40 million – all of which was due to official error.

So, in sum: fraud costs the DWP £80 million. Error costs the DWP £160 million, and costs the disabled/incapacitated £340 million.

So why isn’t this fact headline news?

Source: Fraud And Error In The Benefit System: 2010/11 Estimates 



Citizens Advice Calls For Financial Penalties On Atos

“Citizens Advice today renewed its call for the government to impose financial penalties on Atos for every inaccurate work capability assessment report that they produce.

The call follows National Audit Office criticism of the Department for Work and Pensions’ failure to penalise Atos – the private company with whom it has a contract to carry out ‘fitness for work’ medical assessments – for under-performance.

Citizens Advice Chief Executive Gillian Guy said:

“We wouldn’t allow a private contractor to let us down on the Olympics, we can’t allow one to let down disabled people. Mistakes by Atos have a human cost and a cost to the tax payer. Getting medical assessments right first time is absolutely essential to ensuring that seriously ill and disabled people get the support they are entitled to, and cutting the number of unnecessary appeals.

“Private companies on government contracts must be accountable to the public. Government should act now to put in place regular, independent monitoring of the accuracy of work capability assessment (WCA) reports and look at imposing financial penalties on Atos for every inaccurate report that they produce.”

CAB advisers helped with more than 97,000 ESA problems in the three months January to March 2012 – up 71 per cent compared with the same quarter last year, making ESA the fastest growing advice issue seen in bureaux.

In the same three month period, bureaux recorded an 82 per cent increase in advice about appeals against ESA decisions. Over a quarter of all advice given by bureaux about ESA concerns appeals. Latest official DWP figures say 32 per cent of appeals against an ESA decision are successful and CAB advisers estimate the success rate at appeal where someone receives specialist CAB advice and is represented is around 80 per cent”.


For further reading see Right first time? An indicative study of the accuracy of work capability assessment reports which discusses research indicating that “many seriously ill and disabled people are being wrongly denied benefits because of serious inaccuracies in an unacceptably high number of medical assessment reports” used to decide who qualifies for Employment Support Allowance.