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Debt in the News - Millions 'lost in fraud

BBC News
Friday, July 06, 2007

Government bodies have lost tens of millions of pounds in debts and fraud, according to a spending watchdog.

The Auditor General on Government Spending said £26m owed to the Child Support Agency was not gathered up and £32m was "probably uncollectable".

The Department for Social Development lost £150m in fraud and error - 4% of the benefits paid out in the year.

The auditor said £1m of outstanding rates were owed by public bodies in Northern Ireland.

It said the ability to recover unpaid rates was a "serious cause for concern".

It said arrears were up by a third to £48m.

Much of it was owed on vacant properties where the owner cannot be traced.

The report also criticised the Child Support Agency for having no debt reduction target for this year and for having an "unacceptable level of error" in its paperwork.

The Department of Social Development was also criticised for its lack of control over a further £69m worth of grants.


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