Massive fraud found at government e-portal

By Steve Malone

Posted on 5 Dec 2005 at 10:59

The controversial Tax Credit benefits system has been thrown into disarray following the revelations that massive fraud has taken place via the online e-portal. As a result of the discovery the site is currently suspended while investigations take place.

Customs and Excise, which manages the Tax Credit Portal, says it has identified and stopped attempts to defraud the government of millions of pounds. According to the Department of Work and Pensions a criminal investigation is also being carried out into the apparent false use of a number of DWP staff identities in fraudulent tax credit claims. However, the DWP emphasises that the fraud relates to internal information held about staff and not the external records DWP holds.

Liberal Democrat Shadow Work and Pensions Secretary, David Laws MP said, 'Ministers have led Parliament to believe that the level of fraud is somewhere in the region of just £30 million - I suspect the real figure is substantially higher'.

The revelations will not help the reputation of the Tax Credit system that has already been criticised for overpaying clients and then demanding money back with the subsequent loss of millions of pounds.