Showing posts with label Fraud. Show all posts
Showing posts with label Fraud. Show all posts

Monday, 16 January 2012

The Good, the Bad and the unnecessarily expensive

A new Comment is Free piece by former Tory MP Paul Goodman appeared online this evening, in which he tried to justify taking money from disabled people and giving it to a company like Atos instead.

He starts out pretending that he might actually live up to his surname and feigning concern for his old constituents. In paragraph number 5 he even uses some actual facts:

The problem with DLA isn't that it traps disabled people on benefits – its purpose is to support the care and mobility needs of disabled people, whether they work or not. Nor is the key issue fraud – which is proportionately tiny: a mere 0.5%.

You can tell he's no longer in office, can't you? If a current MP told the truth about benefits so brazenly Cameron would probably have him bent over his lap, bullwhip in hand, faster than one can say "calm down dear".

The article was clearly an attempt at something of a con. Obviously his thought process was "if you start with the facts people will think you're an honest writer. So then when you slip some bullcrap in 2 thirds of the way through, they'll have built the perception that you're an honest kinda guy and won't bother checking any more."

That's when it goes to shit.

But there is a real problem, and that is error. More than 70% of the current DLA caseload has an indefinite award. There is no effective means of ensuring these payments remain correct. Ministers claim there are hundreds of millions of pounds of overpayments.

You know what, I'm gonna take this one sentence at a time.

But there is a real problem, and that is error.

This is actually pretty true. The fraud rate for DLA is, as he has already pointed out, 0.5%. The rate of customer error is 0.6% and the rate of DWP error is 0.8% (see table on page 12 of this DWP report), so it is the DWP doing the bulk of the ballsing up.

More than 70% of the current DLA caseload has an indefinite award.

This could possibly be true too. Haven't got the figures to hand, it's gone midnight and I want to go to bed at some point tonight so I'll just give him the benefit of the doubt. Next!

There is no effective means of ensuring these payments remain correct.

Here's where he tried to resort to a bit of semantic trickery. You see; if an award was made correctly at the time it was awarded, it's not error. If the recipient's circumstances change and they fail to notify the DWP then that's fraud. He is trying to imply that the fraud rate is greater than it is by trying to paint it as appearing in the "error" column.

Ministers claim there are hundreds of millions of pounds of overpayments.

If you go back to the document I linked to already you'll see that, actually, it's 2.2 hundreds of millions of pounds. The DLA spend is £12bn meaning the overall overpayment rate is 1.9%

He claims that regular reviews would stop people from getting overpaid if they get better. Apparently no-one told him that an incurable condition is for life, not just for Christmas. Do you think he knows many people with cerebral palsy who got miraculously cured? I wonder if his social circle is full of war veterans who lost limbs which then grew back? I know he sat on the opposite side of the house to them, but he must have crossed paths with them sometimes: Do you think he asks David Blunkett and Gordon Brown if their eyesight is getting better? And as it's something I have I'd be very curious to meet someone with magically vanishing osteogenesis imperfecta. One can only assume that Goodman believes that Lourdes actually works.

While the absence of regular reviews might result in a few people getting overpaid, it ultimately works out to the benefit of the taxpayer: You see, most people become more impaired over time; rather than less. But where progression is gradual people don't often notice it quite so keenly. And then there are those who did notice they'd gotten worse but are too scared to call the DWP in case an overzealous Atos assessor comes and takes all their DLA despite them being eligible for an even higher rate.

Today @spoonydoc tweeted the following (and she's proper clever, she wrote the Spartacus Report):

DLA fraud:0.5% at £60mill PIP reassessments £300-500mill over 3 yrs. Cost saving or ideology?

So not only would the government find themselves shelling out more on people that had become more impaired but wouldn't have reported it, they'll also be haemorrhaging money to pay for these new reviews. Mr Badman says "but ducking decisions simply because constituents won't like them is scarcely a noble motive." I concur: But I also think that wanting to stump up more money for no other reason than to persecute disabled people is a rather overpriced way of proving that he is an odious little man.

Saturday, 10 December 2011

Crimestoppers

This week Crimestoppers launched a new campaign to "fight benefit fraud". They say this is in response to benefit fraud being deemed the third "most worried about" type of crime in a poll they ran this year. (Hat tip to @Debbiegeorge65 for pointing out the link.)

This is despite the fact that there is already channel for reporting benefit fraud. And despite the fact that 96% of calls to the National Benefit Fraud Hotline are malicious or timewasting. David wrote a bit about what it was like to be falsely accused of fraud back in January.

It's worth reading the official fraud stats on page 12 of this latest report to compare fraud to error and also to see how much is actually lost to fraud. But here are the fraud rates:

  • Income Support: 2.4%
  • JobSeeker's Allowance: 4.1%
  • Pension Credit: 2.3%
  • Housing Benefit: 1.3%
  • Incapacity Benefit: 0.3%
  • Disability Living Allowance: 0.5%
  • Retirement Pension: 0.0%
  • Carer's Allowance: 3.9%

The benefit with the highest rate of fraud is JSA at 4.1%. Certainly a far cry from the lies in the Daily Mail that 94% of IB claimants are fakers.

But it's because of these lies that the voters in the Crimestoppers poll would think that benefit fraud is so prevalent. And these lies go totally unchallenged in the mainstream press. This week on Question Time judge Constance Briscoe claimed there were vast swathes of fakers out there, but when asked how many she, unsurprisingly, didn't know. Next boss Lord Wolfson then claimed that JSA wasn't the benefit with the fraud problem, but disability benefits. The same disability benefits whose fraud figures I've italicised so you can clearly see just how low those fraud rates are. No-one corrected him. (Mehdi Hasan has written a blog post correcting some flawed statements from the episode, but not the disability benefits one.)

According to those same DWP figures, the overall cost to the country of benefit fraud is £1.2bn. About a fifth of tax avoided by just one company: Vodafone. It's certainly a far cry from the £35bn to £70bn avoided in tax in total. So why aren't Crimestoppers campaigning against tax issues rather than pouring fuel on to the already raging fires of hate?

It's worth noting that while researching for this post I Googled "tax fraud facts," the top (non-sponsored) result isn't actually anything to do with tax fraud: It's the HMRC page about tax credit fraud. Which says everything you need to know about how our society prioritises those wildly differing amounts of cash lost to fraud on the basis of the perceived social status of those committing the crimes.

Tuesday, 23 August 2011

"Swimmer admits benefit fraud charge"

"Luckily I broke a rib so I won't be going swimming for a couple of weeks," is possibly one of the stranger sentences I have ever uttered. How could hearing a rib go "snap" upon bending down resulting in me being unable to partake of an activity that's good for me possibly be considered "lucky"?

This is how:

A benefits cheat who fraudulently claimed £25,000 in disability payments was caught out after being spotted going swimming on holiday.

I explored a lot of the issues in this post a few months ago, but in short: Swimming is good for me, it's good for keeping my skeleton as strong as possible and helps prevent things like ribs going snap when I bend down. And news stories like this make getting that vital exercise a terrifying prospect because they fuel vigilantism and make it likely that I'll get reported to the DWP accused of "faking" because I can swim a bit.*

I concluded that post in April with the paragraph:

Next year will the DWP be reviewing the entire Paralympic team using the television footage as "evidence" that the athletes are too fit to be disabled?

When actually what happened was something far more bizarre than that, something that I couldn't possibly have imagined: Atos will be designing and building the Paralympic website, as well as providing technology support during the games. As @SaliWho put it "satire is cancelled."

* = Emphasis retrospectively added as I'm gathering from the comments I wasn't sufficiently clear as to the main problem with this case. It's not about whether or not she was actually guilty, it's about the media convincing the general public that ill/disabled people who can swim must be faking. Apologies for my initial lack of clarity; I was a bit of a zombie yesterday after the aforementioned broken rib prevented me from finding a comfortable sleep position the night before so I was trying to function on only a couple of hours sleep.

Saturday, 9 July 2011

The worst kind of postcode lottery

The DWP published a press release yesterday, reinforcing the status of benefit claimants as primarily suspected criminals. Titled Cheats warned of benefit fraud blitz, it describes how claimants who live in "high risk postcodes" will be scrutinised, "regardless of age, gender, ethnic make-up, type of benefit recipient, income, disability breakdown or family status".

The lucky claimants in Birmingham's B44 postcode, the Perry Barr and Kingstanding area, will be the first to receive the Mobile Regional Taskforce. Yet again, benefit claimants are automatically under suspicion, simply because they are unlucky enough to have to rely on government money, and now because they live in certain postcode areas.

It does not explain what makes a particular postcode 'high risk', but I would imagine they are made up of areas which are more deprived, with higher numbers of people already living in poverty. So, the more likely you are to need government support, the more under suspicion you are?

Benefit claimants are not criminals! While finding people who are committing fraud on a huge scale is clearly important, this move just reinforces the propaganda coming freely from the government and certain parts of the media that we are all ripping off 'the taxpayer' and need hunting down and prosecuting. It increases people's anger at us, and our fear at our situation, over which we have no control.

(Cross-posted at incurable hippie blog).

Friday, 29 April 2011

An exercise in losing DLA

This news story scares me. That the story will continue to provoke vigilantism towards us scares me.

The case itself I'm kinda "meh" about. We know that it's impossible to create a fraud-free welfare state. The DWP acknowledge that DLA has a fraud rate of 0.5% (see page 8 of this DWP report) so that means that one in every 200 claimants is a fake and this woman was seemingly that one in 200. It's worth noting that DLA has the second lowest fraud rate of all benefits, the only benefit with a lower fraud rate is the old age pension.

It's the news story that bothers me, the implication that if you can exercise that you're not really disabled.

On days when I'm well enough I swim and go to the gym. Exercise is important for everyone because it improves your energy levels, helps you sleep better and the endorphins are excellent for your mental health. And energy, sleep and sanity are all areas in which I have plenty of room for improvement.

But on top of that I have my impairment-related need to exercise. Osteogenesis imperfecta causes poor muscle tone so by default I'm a weakling. The stronger my muscles are the better able they are to compensate for my crappy tendons and ligaments. So stronger muscles means less joint pain. And then there's the fact that my bones already break easily and immobility has been proven to reduce bone density further. So by going to the gym I'm doing the NHS a favour by reducing my likelihood of breaking bones thus saving their resources to treat me.

Surveillance footage released by the DWP showed the mother of two using the treadmill for 55 minutes at the Spindles gym at Liverpool's Adelphi Hotel.

She was also seen using the free weights, resistance machines and the swimming pool.

OK, I can't use a treadmill. I can barely walk on a solid floor. I can't walk on moving vehicles like trains, I just fall down. Attempting to use a treadmill would be a fast track ticket to A&E. But I do use free weights, resistance machines and I swim. This story is going to make my fellow gym-goers think I'm a fraud.

There's a mass cultural perception that wheelchair users are all paraplegics. I remember once in my stand up comedy days I crossed my legs in the middle of my set. This prompted a heckler to shout "faker! You moved your legs!" (It was actually a good thing. I took him down so brutally that I got the audience totally on my side and had a great gig.) I can't use any gym machines that involve standing up like a treadmill or those things that emulate the actions of stair climbing or roller-blading; but I can and do use machines that work the legs like a recumbent exercise bike and a rowing machine. It would be very easy for someone to make a mental note of my name by glancing at the hosptial-esque paper wrist band they make you wear in the gym (to prove that your membership covered that session and you're not someone who's just wandered in). Then with my name they could phone the DWP's fraud hotline or The Sun's "shop a scrounger" line and accuse me of being a faker because they saw me peddling an exercise bike.

Then there's swimming. As a teenager I swam a lot. I did briefly make it into the GB Paralympic team (for a week and it all ended in tears). I may no longer have the fitness to swim like the clappers but the skill level still resides so I'm a faster swimmer than your average non-disabled person.

I gave up on public swimming sessions because they're so awful. You get people doing doggy paddle in the fast lane. You get people walking up and down the fast lane. You get men with long arms and no lane etiquette swimming butterfly down the middle of the fast lane with no concern for who they smack around which really isn't a good idea when you've got brittle bones. So I joined a masters team (masters = swimming for over 25s) so I can swim in safety because there's a coach overseeing the session to police the lane etiquette. And being coached has the added bonus that you can't just stand at the end of the pool dawdling, you really get some work done.

The other swimmers in the club all seem to be good people and I'm not worried they'll accuse me of being a fraud to the DWP. But at that leisure centre there are 2 pools next to each other separated by windows. Someone in the public session in the adjacent pool could easily see me swimming, get huffy about the fact that the fat disabled dwarf is faster than they are, follow me out to my car and phone the DWP to say "I think the woman who drives AB34 EFG is a faker." The DWP could then check my reg plate against the DVLA's records and track me down.

Getting the exercise I need to keep my skeleton in the shape it's in and not have it get worse already worries me. This story makes exercise that much more scary. Would the BBC really rather I just sit on the sofa and do nothing on the days when I am well enough to function?

Next year will the DWP be reviewing the entire Paralympic team using the television footage as "evidence" that the athletes are too fit to be disabled?

Edit 4/5/11: My gym-going days may soon be over anyway. I just found out that from July my gym fees as a disabled person using my local authority gym will go up by roughly 2000%. That's neither a typo or hyperbole, I didn't mean 200%, no. The London Borough of Camden are putting gym fees for a disabled person up to just under £10 a month from the previous level of circa £6 a year.

Tuesday, 22 February 2011

Just Because You're Paranoid Doesn't Mean They're Not Out To Get You.

The media rhetoric around, and the threatened government cuts to, disability benefits are filling people with fear. They are contributing to deep suspicion and even aggression from the general public towards disabled people, and lots of us are feeling more than a little petrified.

From Nadine Dorries' Shop a Twit campaign, to virtually everything put out by the Daily Mail, many disabled people are becoming scared to go out, to have occasional treats, to try something normally outside of their limits, such as walking a few steps, or to put their name to anything they post on the internet at all, in case someone should see them, report them for benefit fraud, and accuse them of 'faking it'.

Of those who have continued to post on twitter, despite previous threats, many feel more limited about what they can say, lest they are judged to be faking, scrounging, or wasting taxpayers' money. Still more are finding they feel they have to justify everything they say, just in case somebody is watching. And programmes like the BBC's Saints and Scroungers do little to help, either people's attitudes, or the overriding fear and paranoia experienced by disabled benefit claimaints.

So I was saddened, but not surprised, to see one person's response to this build-up of fear.
I started to worry that my heavy use of twitter could be used against me in this process. I have already explained how and why I can use twitter without that meaning that I am fit to work, but I also worried that my tweets could easily be taken out of context. For example, a tweet about undertaking an activity of some sort could be used as proof that I can do that all the time. What an investigator would not see is how good or bad a day I was having, how much I had to prepare for and work around the activity, or how much pain and exhaustion that activity would cause for days afterwards.

So Steven Sumpter, aka latent existence, took, "the drastic step of deleting all 12,272 of my tweets". All of them. And why? Fear. Fear they would be used against him. Fear that they would portray an image of him actually being fine. Now, I follow him on twitter, and it's not like he's endlessly talking of weekends away skiing and trekking up mountains, and decided he'd better suddenly get rid of the evidence. This is the twitter account of someone who is clearly not well enough to work. This is someone who talks about a good day being when they open their curtains 'without fleeing in pain from the light'.

This someone who nobody could accuse of faking it. Anyone with a chronic illness can recognise straight away that these aren't a series of made-up tweets by someone imagining what it might be like to be ill, and even so he felt so threatened by the current atmosphere of suspicion and attack, that deleting over 12,000 tweets felt like the only way forward.

But he's not the only one scared. It's not a paranoid or psychotic illness which is making him have these suspicions, some of the most mentally healthy people I know concur with him. And I want our progressive, equal society to take a look at itself, and wonder just how progressive and equal it is.

(cross-posted at incurable hippie blog).

Wednesday, 9 February 2011

I'm angry

Cross posted at Rage Against the Coalition

I'm angry a lot these days. Or more accurately, I vacillate between anger and despair.

The coalition are making a big noise about welfare 'scroungers'. The thieves are costing the taxpayers billions they say. Headlines about 'scrounger' scream at us from atop the Daily Mail almost every day.They want to make claiming harder to weed out those who are undeserving.
Benefit fraud costs £1.5 billion. Tax fraud costs £15 billion.
So why aren't they targeting the tax cheats? They are costing us more. Yet the government is making hundreds of HMRC staff redundant. They should be taking on more and training them properly.

The Atos system used to 'weed out' the cheats is not fit for purpose. This has been demonstrated time and time again. It finds huge amounts of people fit for work, yet 70% of those who appeal have the decision overturned. This is an enormous waste of money. And it hurts those it's supposed to help. Not to mention the staff aren't trained and they earn more for each person they find fit for work.

They are abolishing Disability Living Allowance. Sure, they're replacing it with the personal Independent Payment but this is nothing but an excuse to chop the amount of people eligible for it. DLA fraud is estimated at less than 1% of the total. Everyone else is legally entitled to it. But they have said we're 'unsustainable'. Do they have any idea how insulting it is to be told that?

They are privatising our NHS, all in the name of 'patient choice'. Apparently GP's are the most trusted people in the medical profession. Aside from the fact that I know several GP's who are terrible and made me feel like I was wasting their time, if they want GP's and patients to have more say why don't they put some of them on the boards of the PCT's, instead of spending £3 billion on abolishing them?
And for that matter, if GPs are the most trusted people in the medical system why doesn't the government allow them to decide if people are fit for work? When it comes to benefits, GPs aren't trusted. The government instead chooses to spend over £500 million on employing Atos, whose track record for mistakes is appalling, resulting in even more money being spent on re-assessments and appeals.

But worse, they are opening the market to private healthcare providers. We all know this is nothing more than paving the way for privatisation. I'm still blinking in disbelief at this. Healthcare should never be linked to profit, it's a basic human right. These reforms will end up with us having a system like America's. And no-one in their right mind can say that works well.

They have raised uni tuition fees to the point where many students will be put off going. Who wants to saddle themselves with £30k of debt before they've even bought a book or paid their rent? Nick Clegg would have us believe that a large number of students will end up paying nothing back. If this is the case then that's their argument for fee raising to pay off the deficit gone out the window.
Of course many of those poor kids won't be attending uni anyway since EMA, the money that enabled them to go to college or stay in the sixth form, has been abolished. A cost saving exercise that hits the poorest children without affecting the richer ones.
Kids who are determined to go to college despite no EMA can turn to the library to borrow their books. But wait, they want to close libraries. Again another cut that will affect the poor much more than the rich. One that will hit the young harder.


Tories apparently value traditions - unless there's money to be made it seems. Why else would they be in favour of selling off the nations forests? Forests that have belonged to the nation since the 1500's? They say they will favour charities or community groups but these organisations as a rule do not have the funds to buy them. They'll end up in private hands or worse, go to the timber companies.

It's like an attack on all fronts. How are we supposed to deal with all of this? And how can we not be angry about it?

Saturday, 14 August 2010

"Benefit fraud is already low" point out the London School of Economics

This post by Jane Tinkler of LSE explains that:

The coalition government’s initiatives may simply spread a lot of alarm amongst benefits claimants and poorer households, doing little to deter fraud but a great deal to discourage legitimate claimants.

She should explain that to The Sun. She goes on:

My table below shows that over the last decade, the levels of fraud in the system have dropped from over 2% of total benefits payments in 2000 to well below 1% in 2009.

Less than 1%. The way the tabloids and the coalition go on you'd think it was nearer 100%.

Jane's article is well worth a read.

Thanks to @RichmondAID for tweeting the link.

Tuesday, 10 August 2010

Cameron's credit-spying plans to cut benefits

Today’s announcement by the Cameron administration on the latest tools they intend to use to crack down on benefit fraud is worrying news for disabled claimants.

The governments wants to use information from credit reference agencies and other third parties to identify suspicious claims. Cameron says welfare and tax credit fraud and error cost the exchequer £5.2bn a year, with a further £1.6bn a year lost on  administrative incompetence. He made no distinction today between the amount of fraudulent claims and the amount of error, although it is widely accepted that fraudulent disability claims are only around 1%, while administrative errors average 2.5% a year.

However, benefits minister Ian Duncan-Smith, who is overseeing reform of the system, was interviewed on the Today Programme today and was forced to admit that the Tories had overstated the amount fraudulently claimed by some five times and that the true figure for fraud was in fact just £1.5bn, according to official Treasury figures, which show that along with the cost of errors amounts to just £3.1bn.

A pilot scheme is already operating in Manchester where the city council works alongside the Department for Work and Pensions to uncover fraudulent claims and co-prosecute. They use data-matching software to examine the financial habits of claimants – where they see someone appearing to spend more than their benefits they will then launch a more in-depth investigation. There is an average of three court cases a week in Manchester at present.

Under the new plans, this scheme will be rolled out nationwide. While cracking down on fraudsters is to be welcomed, it is highly likely that disabled claimants could find themselves being unfairly investigated.

Many genuine disabled claimants live in constant fear of having their entitlement cut off. The current daily rhetoric that lumps together fraud and error, combined with “helplines” that encourage people to report neighbours they suspect are defrauding the benefits system, is now discouraging many from leaving their homes, particularly those who use mobility aids only part of the time. The BBC’s Ouch disability forum has already documented some cases where neighbours reported genuine claimants for fraud because they left their house on foot rather than a wheelchair.

A further concern over the decision to use credit reference companies to piece together claimants’ spending habits is the issue of invasion of privacy. Disabled claimants already surrender almost all their privacy when filling in complex claim forms. Being forced to describe toilet needs, for example, to faceless administrators is very distressing for many claimants. But, at present, claimants can still spend their Disability Living Allowance as they wish so they can make their lives as easy as possible. Snooping by credit agencies could mean many will be forced to justify how they use their benefits. There is a real fear that under such circumstances, official disapproval of how benefit money is used could result in more disabled people finding their meagre income will be severely reduced or even cut off.

Cameron’s announcement was made in the Manchester Evening News and he has given no further statement to the media, leaving Duncan-Smith to do that. An as yet unsubstantiated rumour has been flying around Manchester Twitter users that the MEN rejected Cameron's article when it was first submitted.

And finally, to put this latest proposal into context, it’s worth remembering that the TUC says the cost of benefit fraud is minuscule compared with that of tax evasion and avoidance. The most recent figure from the organisation Tax Research put the figures for combined tax evasion and avoidance at £95bn. Maybe this is where government resources should be targeted?

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