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Isle of Man rate of benefit fraud significantly lower than Great Britain

Mon, 24 Apr 2023

The level of benefit fraud and error in the Isle of Man is significantly lower than the rate in Great Britain.

The information, released by the Government, follows a recent freedom of information request.

In the financial year 2021/22 the Government spent £291.96 million on social security benefits, which includes the state pension. Of this, just over £550,000 was identified as fraud or error, representing only 0.19% of the total social security budget for the year.

In Great Britain, the comparable rate of benefit fraud and error for the same period was 4%, totalling £8.6 billion.

Treasury Minister Dr Alex Allinson MHK said: “The overwhelming majority of people on our Island apply for the benefits they are entitled to in an honest way and Treasury is working to minimise any errors in payments.  The Island has a proud tradition of having a social security system which provides a valued safety net for those who need it. 

“It is important that there is clear and simple access to the benefits system but that all payments are accounted for and are accurate.

“Whilst very rare, the Manx public have a vital role to play by reporting suspected fraud.  In the last financial year we received 362 allegations of benefit fraud.  All were reviewed and whilst formal action was not required for the majority of the cases, 16 went on to be prosecuted in the criminal court.”

The Minster continued: “I must put on record my thanks to the public and to the investigators in the social security team whose diligence and hard work help to catch fraudsters and ensure that social security benefits go to those people and families the system is intended to support.”

As well as a criminal record and penalties handed down by the court, benefit fraudsters can face sanctions on future benefit claims and have to pay back the money from their fraudulent claim.

Anyone who suspects someone may be committing benefit fraud can contact a free hotline on 0808 1624043 or by emailing investigations@gov.im.  Calls can be made anonymously.

The ongoing digitisation of the social security system as part of the Government’s Digital Strategy will help to reduce fraud and possible payment errors.

 

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