Treasury reviews Spending Review claim

The Chancellor's October Spending Review was widely seen as the the most important statement of the new Government's approach to tackling the budget deficit yet issued. Full Fact looked at a number of the policies contained within its pages with varying results, but perhaps the single biggest inaccuracy we spotted related to benefit fraud.

George Osborne told the Commons: “Nor will fraud in the welfare system be tolerated anymore. We estimate that £5 billion is being lost this way each year.”

This isn't correct. According to the Government’s own figures, of the £5.2 billion being lost, only £1.5 billion is due to fraud, with the remaining £3.7 billion lost to error on the part of the Government or the claimant.

Full Fact wrote to the Treasury to request a correction to prevent these inaccuracies distorting future debate on the issue. The omission was also highlighted by other commentators – including The Telegraph's Peter Oborne, who argued that the inaccurate figures “helped to build up the impression that the poor are mean-minded and cheating.”

Whilst we have yet to receive a response to our letter from the Treasury, we have been encouraged to note that its website now refers to “fraud and error in the welfare system”, which fully and accurately portrays the figures that Mr Osborne referenced.

No such correction has yet been issued in Hansard, and Full Fact will continue to press for this, however we are happy to welcome the Treasury's move as a first step towards correcting the record.

 
 

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Full Fact believes in the possibility of accurate and informed debate. Our factchecks look at whether it is reasonable for interested citizens to trust the claims of politicians and journalists based upon the evidence that is available to us. Where we find mistakes, we ask for them to be corrected.

 

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