Benefit fraud v tax evasion: Which costs more?

Labour criticises government for not putting enough focus on rich tax dodgers

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(Image credit: 2010 Getty Images)

Last year, the National Audit Office published a 'stocktake' of incorrect payments by Department for Work & Pensions and HM Revenue & Customs to those claiming state benefits, including working tax credits.

It did not make for comfortable reading, especially for the DWP, which is likely to miss targets for reducing payment errors. In total the NAO said £4.6bn had been overpaid to claimants in the 2013/2014 tax year, either as a result of mistakes and errors or outright fraud. On the other hand the departments had underpaid claimants by a further £1.6bn, potentially leaving many vulnerable people struggling for money.

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