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Benefits (Leicester)
Mr. Janner : To ask the Secretary of State for Social Security what is the maximum waiting time for (a) claimants, (b) benefits and (c) consultations at each of the benefit centres serving the Leicester, West constituency.
Mr. Burt : The performance of a benefit office is the responsibility of Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. and learned Member and a copy will be placed in the Library.
Letter from Michael Bichard to Mr. Greville Janner, dated 26 July 1993 :
As Chief Executive of the Benefits Agency, it is my responsibility to answer questions about relevant operational matters. I am therefore replying to your recent Parliamentary Question to the Secretary of State for Social Security, asking the maximum waiting time for (a) customers, (b) benefits, and (c) consultations at each of the benefit centres serving the Leicester, West constituency.
As you will be aware, your constituency is served by two Benefit Agency Districts, North Leicestershire and South Leicestershire. While there is no specific measurement of waiting times, and it is therefore not possible to answer your question in the form required, the Districts believe that customers are seen, initially within 15 minutes. Customers waiting for a more detailed interview or payment of benefit may have to wait longer than this and they are generally advised how long this is likely to take. Every effort is made to ensure that customers do not have to wait more than two hours. Both Districts will investigate any instances where this is exceeded. Consultations with customers are arranged at the customer's convenience, and either conducted immediately or at a place and time convenient to the customer.
I hope you find this answer useful. A copy of this letter will appear in the Official Report and a copy will also be placed in the Library.
Column 1023
National Insurance Contributions
Mr. Milburn : To ask the Secretary of State for Social Security how many self-employed individuals have been found to be avoiding national insurance contribution payments ; and what has been the value of the revenue recovered in each year since 1984-85 (a) in each region and (b) nationally.
Mr. Hague : The administration of national insurance is a matter to Miss Ann Chant, the chief executive of the Contributions Agency. She will write to the hon. Member and a copy will be placed in the Library.
Letter from Ann Chant to Mr. Alan Milburn, dated 26 July 1993 : As Chief Executive of the Contributions Agency I am responsible for answering questions about relevant operational matters. I have been asked to reply to your question about how many self-employed individuals have been found to be avoiding payment of National Insurance Contributions (NICs), and the value of the revenue recovered in each year since 1984-85.
In general, all self-employed people aged between sixteen and pension age are required to pay Class 2 NICs, unless they have applied for, and been granted, an exception from payment on the grounds of small earnings. Where payment is not made arrangements are in place for the contributor to be reminded and if necessary pursued for non-payment. It is the aim of the Agency to obtain current compliance and payment of any arrears at the smallest cost of public funds.
Most people commencing self-employment notify the Agency or the Inland Revenue that they have done so, but we are aware that some do not. In addition, there are some with whom the Agency loses contact if they have changed address and not reported the change. We have no reliable information as to the total numbers who are self-employed and are avoiding payment of NICs. Since April 1991, the Secretary of State has set a High Level Target to identify self-employed people not previously known to the Agency. This target has been increased each year, from 60,000 in the 1991/92 year to 70,000 in the 1992/93 year and 103,000 in 1993/94 : in the first two years we have exceeded the target set. Of course, some of the newly-identified self-employed will be earning low amounts and may qualify for exception from payment on the grounds of low income. The important element is, however, that they have become known to the Agency, and may well subsequently be liable to pay Class 2 NICs.
Because of the method of recording our statistical information I cannot supply the information you have asked for in relation to the amount of money recovered from our efforts in the pursuit of unpaid National Insurance debt. However, I have supplied in annexes, which will be tabled in the Library, information on the numbers and amounts involved where proceedings have been undertaken by the Agency or instalment arrangements have been accepted.
When a contributor acknowledges that he or she owes arrears of Class 2 NICs, but is unable to settle the debt by payment of a lump sum, the Agency will consider, in appropriate circumstances, the acceptance of payment of the arrears by instalment. Such an arrangement is always conditional upon the contributor undertaking to pay future Class 2 NICs timeously. An annex to my reply gives details of the instalment arrangements accepted in the years in question. If necessary, the Agency will pursue unpaid Class 2 NICs by either civil or criminal prosecution and a further annex gives details of the number of prosecutions undertaken and the amounts involved. I am supplying the figures from 1984-85 (Instalments from 1985-86) on a regional basis and for the 1992-93 year on a national basis. A regional breakdown of the 1992-93 year is not yet available. I regret that I have been unable to give you the precise information that you requested in your question but I hope that my reply has proved helpful.
Column 1024
Mr. Milburn : To ask the Secretary of State for Social Security, pursuant to his answer of 25 June, Official Report, columns 324-25, how many cases of national insurance contributions avoidance have been uncovered ; and how much revenue has been recovered in each year since 1984 -85.
Mr. Hague : The administration of national insurance is a matter for Miss Ann Chant, the chief executive of the Contributions Agency. She will write to the hon. Member and a copy will be placed in the Library.
Letter from Ann Chant to Mr. Alan Milburn, dated 26 July 1993 : As Chief Executive of the Contributions agency I am responsible for answering questions about relevant operational matters. I have been asked to reply to your question about how many cases of avoidance have been uncovered and the value of the revenue recovered in each year since 1984-85.
As I explained in my reply to your earlier question, where non-compliance with National Insurance law is uncovered the Agency does not attempt to differentiate between cases involving genuine mistakes and suspected evasion or avoidance of liability. There are several ways in which the incorrect or non-payment of National Insurance Contributions (NICs) can be discovered including survey visits made by inspectors, examining and processing employers' End of Year Returns, and enquiries made by individual contributors. Since achieving full Executive Agency status in April 1991 the Contributions agency has been set High Level Targets on the number of surveys undertaken and their subsequent Class 1 yield and on the identification of self employed contributors previously unknown to the Department. The targets and published achievements were as follows :--
Surveys of Employers
Numbers Target
1991-92 88,000 (achieved 106,353)
1992-93 114,000 (achieved 118,032)
1993-94 123,000
Yield Target
£33.8 million (achieved £59.23 million)
£71.24 million (achieved £89.14 million)
I am attaching, as an annex, details for potential arrears going back to 1986-87, identified as a result of survey. Collection of these arrears is largely the responsibility of the Inland Revenue, and figures for the actual amounts recovered are not available. Self Employed identified
Numbers Target
1991-92 60,000 (achieved 84,040)
1992-93 70,000 (achieved 93,981)
1993-94 110,000
Not all the self-employed identified would have been liable to pay Class 2 NICs in the years in question, so no details of the precise yield can be calculated. But once someone has been brought into the system, their future liability will be monitored.
I hope that the information that I have supplied is useful.
Arrears of NICs identified on
survey
Year |£
---------------------------------
Amount of Class 2 underpaid
1986-87 |6,542,075
1987-88 |5,803,847
1988-89 |4,947,683
1989-90 |5,682,563
1990-91 |10,482,893
1991-92 |21,311,394
1992-93 |19,604,506
Amount of Class 1 Underpaid
1986-87 |8,041,677
1987-88 |5,949,893
1988-89 |4,518,164
1989-90 |6,031,229
1990-91 |25,035,006
1991-92 |58,891,925
1992-93 |89,670,327
Fraud
Mr. Battle : To ask the Secretary of State for Social Security how many officers have been involved in investigating social security fraud in (a) local offices and (b) regional teams in each year since 1979.
Mr. Burt : The administration of fraud investigation is the responsibility of Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member with such information as is available and a copy will be placed in the Library.
Letter from Michael Bichard to Mr. John Battle, dated 26 July 1993 :
As Chief Executive of the Benefits Agency, it is my responsibility to answer questions about relevant operational matters. I am therefore replying to your recent Parliamentary Question to the Secretary of State for Social Security asking how many officers have been involved in investigating social security fraud in (a) local offices and (b) regional teams in each year since 1979.
I regret that I am unable to provide you with all the information you have requested but I hope that you find the following helpful. The Sector Fraud Organisation has only been in existence since January 1991 and prior to that date staff investigating fraud were provided by the Local Offices when required and were not counted separately. The regional fraud teams ceased to exist when the Sector Fraud Organisation was set up.
The first full year for which figures are available is the year ending 31 March 1992. The number of sector fraud staff in post at that date was 2,742. At the year ending 31 March 1993 there were 2, 789 sector fraud staff in post.
In addition to the Sector Fraud Organisation the Benefits Agency also uses discrete teams to investigate organised and multiple claims fraud. In the year ending 31 March 1992 there were 227 staff involved in the prevention and detection of organised and multiple claim fraud. The figure for the year ending 31 March 1993 was 268. I hope you find this reply helpful. A copy will appear in the Official Report and a copy will also be placed in the Library.
Column 1026
DNA Tests
Mr. Gareth Wardell : To ask the Secretary of State for Social Security (1) what is the expected date when figures will be available from the Child Support Agency for the period 1 April 1992 to 31 March 1993 on the number of DNA tests carried out in the pursuit of declarations of paternity in child maintenance cases in England and Wales ;
(2) what were the costs to the Child Support Agency of the DNA tests used to establish paternity during the pursuance of a maintenance claim for the year ending March 1992.
Mr. Burt : The administration of the Child Support Agency is a matter for Mrs. Ros Hepplewhite, the chief executive. She will write to the hon. Member and a copy will be placed in the Library. Letter from Ros Hepplewhite to Mr. Gareth Wardell, dated 27 July 1993 :
As Chief Executive of the Child Support Agency it is my responsibility to answer questions about relevant operational matters. I am therefore replying to your recent Parliamentary Questions to the Secretary of State for Social Security asking what were the costs to the Agency of the DNA tests used to establish paternity during the pursuance of a maintenance claim for the year ending March 1992, and the expected date when figures will be available for the period 1 April 1992 to 31 March 1993 on the number of DNA tests carried out in pursuit of applications to a Court for a maintenance order in England and Wales. Both periods relate to the time before the Agency was launched.
We estimate that during the period from 1 April 1992 to 31 March 1993, the Department made application to the courts for a declaration of paternity which involved DNA testing in less than 100 cases. As regards the costs to the Department of DNA tests carried out in 1991-92, my previous letter explained that in the year ending March 1992 DNA testing was an issue in less than 1 per cent. of the 1,000 cases in which the Department made application to the courts for a declaration of paternity. Recovery of the costs for DNA testing were normally sought from the court in the costs they awarded. Before the Department then, or the Agency now, would consider pursuing such a case, the weight of other evidence of paternity would be substantial and the expectation was that most of the cases would be successfully proven and that the full costs would be recovered. In the light of this, and due to their limited nature, figures were not collected on the costs involved in individual DNA testing nor on the total court costs recovered.
I hope you will find this reply helpful. A copy will appear in the Official Report and a copy will also be placed in the Library.
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