White Collar Crime Rises as Prosecutions Fall As Claimant And Official Error Fall

White collar crime prosecutions fell from 9,489 in 2015 to 8,304 last year. Since 2011, when there were 11,261 prosecutions, there has been a 26% drop in prosecutions.

Meanwhile the number of reported fraud offences increased 4% in the last year, to 641,539 in 2016 up from 617,112 in 2015. Since 2011 the number of reported crimes has risen nearly four-fold, from 142,991 offences.

White collar crime includes corruption, bribery, insider dealing, computer fraud, and false accounting practices. Online fraud was the most commonly-reported offence last year and according to a recent National Audit Office report, cost private sector businesses an estimated £144 billion last year and individuals £10bn.

Image: The right-wing media exagerates welfare fraud, putting much less emphasis on white collar fraud. 

Overall welfare fraud and error stayed at 1.8% with claimant and official error both falling to record lows.

Dedicated investigators work hard to pursue and prosecute those who try to defraud the system. Last year £980 million of taxpayers’ money was recovered – the highest amount ever and £50 million more than the previous year.

The Department for Work and Pensions administers welfare benefits to around 22 million people.

A typical situation is a single mother with child meets a man who comes to live with her. She does not declare the change in her situation. If woman or man is found to be living with someone who is working more than 16 hours a week, the household would lose income support and probably housing benefit, council tax benefit, free school meals, dental help, school uniform help and free prescriptions. A falling out with a friend could see the person being reported to the national benefit fraud hotline, which is frequently used to settle personal scores. 

'A "welfare cheat" was no different to a mugger who robs you on the street', said George Osborne when he was Chancellor who then went on; “Nor will fraud in the welfare system be tolerated any more. We estimate that £5bn a year is being lost this way."

Compared to the £144 billion last year and individuals £10bn that stole money in white collar crimes, the emphasis on benefits cheats seems misplaced.

Image: Mum-of-three Jaine Miller of Selwyn Drive, Broadstairs, who worked at Margate Job Centre, was jailed for a year for benefit fraud. One of a number of Jobcentre Plus staff procecuted. 

Many would question the statement, that claimants who have someone living in the house, they do not declare are like 'muggers' as rather exaggerated? Many Claimants are just trying to survive and the numbers compared to white collar crime are trifling. If a single mum meets a man, the assumption he should assume total financial responsibility for the household seems sexist and outdated.

Back in the day; The Department of Work and Pensions under Chancellor Osbourne announced a zero-tolerance approach that would involve the recruitment of "another 200 anti-fraud officers to sanction a further 10,000 fraudsters every year", and proposed introducing a "system for rewarding members of the public who provide information that results in significant recovery of public funds". The department promised an additional £425m funding to combat the problem over the next four years, hoping this will deliver a £1.4bn reduction in fraud and error by 2014/15

Errors by the DWP such as overpayment are far more significant. 

You can also report suspected benefit fraud online or by post.

Report someone living in Spain or Portugal

Use the local numbers if you’re calling from Spain or Portugal.

Please read the report below.