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12 Mar 2004 : Column 1798W—continued
Benefit Fraud
Mr. Webb: To ask the Secretary of State for Work and Pensions what the recorded benefit fraud savings for (a) his Department and (b) local authorities were in each of the last six years. [151019]
Mr. Pond: The available information is in the tables.
| MVA (£) | |
|---|---|
| 1999–2000 | 27,948,245 |
| 2000–01 | 22,109,627 |
| 2001–02 | 16,382,983 |
| 2002–03 | 16,057,813 |
Notes:
1. Figures are rounded to the nearest pound.
2. The Monetary Value Adjustment (MVA) scheme was introduced from 1 April 1999. MVA is the difference between the weekly amount of benefit which would have been paid, or would have continued to be paid, and the benefit paid following the decision-maker's decision on the information gathered. Comparable figures for periods prior to 1999–2000 are not available.
Source:
Fraud Information by Sector (FIBS).
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| Weekly benefit savings (£) | |
|---|---|
| 1997–98 | 306,400,000 |
| 1998–99 | 215,900,000 |
| 1999–2000 | 167,600,000 |
| 2000–01 | 133,900,000 |
Notes:
1. The Weekly Benefit Savings (WBS) scheme recorded estimated savings from fraud detection. It is not possible to measure actual savings from fraud detection because it is not possible to know how long the overpayment would have continued for had if not been detected at that point in time. Estimated savings from the WBS scheme are therefore based on the assumption that the overpayment would have continued for 32 weeks had it not been detected.
2. Amounts have been rounded to the nearest £100,000.
3. Local Authority WBS rules were tightened during this period, and the fall in recorded savings may not reflect a fall in actual amounts detected.
4. For local authorities, the WBS scheme was replaced by the Security against Fraud and Error (SAFE) scheme in April 2002, with some local authorities joining in April 2001; therefore figures for WBS savings are not available for 2001–02 onwards. Like WBS, the SAFE scheme provides rewards for detected overpayments. However, it provides rewards for the detection of both fraud and claimant error overpayments.
Source:
Local Authority returns.
Company Pensions
Mr. Sheerman: To ask the Secretary of State for Work and Pensions (1) what safeguards are in place for those who have company pensions against loss of their pension through insolvency; [160039]
(2) what support is available to those who have lost their pensions when the company which employed them went bankrupt. [160040]
Malcolm Wicks: In the event of employer insolvency, assistance is available to pension scheme members under the Employment Rights Act 1996 and the Pension Schemes Act 1993. Under these Acts, insolvency payments are made from the National Insurance Fund (NIF) to qualifying former employees. Claims for unpaid employees' National Insurance contributions are limited to the actual amount deducted from wages during the twelve months prior to the date of insolvency. Unpaid employers' National Insurance contributions for the twelve-month period prior to the insolvency date are also payable, but are subject to monetary limits depending on the type of pension scheme.
Assistance is also available under 'deemed buyback' provisions, introduced as part of the Pensions Act 1995. Under these provisions members of contracted-out occupational pension schemes can, in certain circumstances, have some, or all of their state scheme rights restored for the period that they were contracted-out.
Other statutory measures are in place to help safeguard the pensions that people have built up. The employer debt provisions ensure that any shortfall is treated as a debt due from the employer to the trustees of the scheme. Changes to the statutory priority order on wind-up, announced on 24 February, will help ensure a fairer distribution of the pension scheme assets between non-pensioner and pensioner scheme members.
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We are also taking additional steps to protect members of defined benefit schemes. We are introducing the Pension Protection Fund, which will protect scheme members by paying compensation if their employer becomes insolvent and the pension scheme is underfunded. The Pension Protection Fund will significantly improve both protection for pension scheme members and confidence in pensions more generally. For the first time ever, individuals with defined-benefit with rights pension schemes can be assured that they will receive a meaningful level of compensation if their employer becomes insolvent and there are insufficient assets in the pension scheme to pay out the pensions promised.
We are also introducing a new Pensions Regulator with the flexibility and powers to take a targeted and proportionate approach to protecting the funds held in pension schemes.
Mr. Sheerman: To ask the Secretary of State for Work and Pensions how many people in (a) Huddersfield and (b) the UK lost their pensions as a result of insolvency in each year since 1997. [160041]
Malcolm Wicks: This information is not available. The currently available source of information on pension schemes is the Pension Schemes Registry, which is administered by the Occupational Pensions Regulatory Authority (Opra). Their database does not allow us to identify the location of scheme members affected nor the solvency status of the sponsoring employer.
Ethnic Minority Outreach Programme
Keith Vaz: To ask the Secretary of State for Work and Pensions which private sector companies or organisations in each of the regions of England have received funding for the Ethnic Minority Outreach Programme; what auditing has been done to ensure that the organisations are able to place people in work; and which 10 organisations or companies have placed the most individuals in employment. [156121]
Mr. Browne: Ethnic Minority Outreach (EMO) contracts have been awarded to public, private and voluntary and community sector organisations who have demonstrated effective links with local ethnic minority communities. Contracts with private sector organisations have been awarded to: 'Talent', delivering provision in Leeds, Bradford and North London; 'Reed in Partnership' in North London; and The Training Network Group' in North and Central London.
Jobcentre Plus collects monthly management information about a range of key performance measures, including job outcomes. However, it is important to recognize that the principal aim of the Outreach pilots is one of engagement with ethnic minority individuals and communities to encourage them to participate in the labour market. This means that a range of outcomes may be considered a success, from making contact with individuals or employers, linking individuals to the local Jobcentre and the benefits and services they provide; providing work focused training or other activity; as well as helping people into work.
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All EMO contracts are monitored by the local Jobcentre Plus District against the targets agreed when the contract was awarded.
The EMO providers who have achieved the most job outcomes are:
1. Business to Business—Leicester
2. At Work (Talent)—Bradford
3. At Work (Talent)—North London
4. Pro-Diverse—North London
5. Oldham College—Oldham
6. Kirklees Metropolitan Council—Calderdale & Kirklees
7. Indian Muslim Welfare Society—Calderdale & Kirklees
8. Halifax Opportunities Trust—Calderdale & Kirklees
9. Family Housing Association—Manchester
10 SITU-Bolton
Minority Ethnic Outreach
Mr. George Osborne: To ask the Secretary of State for Work and Pensions if he will make a statement on the success rate of the Minority Ethnic Outreach. [158424]
Mr. Browne: Ethnic Minority Outreach has been designed and implemented to test new ways of engaging with communities and individuals who have had little or no contact with Jobcentre Plus and disproportionately high levels of unemployment. It is delivered by organisations that have demonstrated their knowledge of, and ability to work effectively with, ethnic minority communities, and uses new, innovative and community-based ways to help ethnic minority people overcome the barriers they face in the labour market. To January 2004, 9,268 people had started on the Ethnic Minority
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Outreach programme, with 1,664 starting work. The majority of those who joined the programme but have not yet found work are still participating, with some having joined mainstream Jobcentre Plus provision.
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