What costs UK taxpayers nearly 450 times as much as benefit fraud?

First published a week ago on my blog, Stars in my Coffee

To those angered by the use of their taxes to fund the lifestyles of benefit fraudsters;

In 2011/2012, before the recent Welfare Reforms, less than a quarter of public spending went on benefits. Of this, almost half was state pensions, less than 3% went on Jobseeker's Allowance, and benefits for those unfit for work accounted for about 12.5%.

Benefit fraud was nowhere near the popular perception of 27%; in fact it was 0.7%. This equates to around 1/1000th of public spending. (Benefit claimants were underpaid their true entitlement by just over this amount, whereas overpayments due to clerical error cost just under 1/500th.)

Income Tax accounts for about 1/3 of UK tax revenue. In order to allow the truly needy to buy the food they and their families need to stay alive, do you really begrudge the 1/3000th of your income tax that is wasted on benefit fraud? That's 15p per month for the few on the average UK salary of £26,500!

Just implementing Welfare Reform has been calculated to be costing an average of £480 per year for every UK adult of working age - including benefit claimants. Those in work account for just over half of the UK's adult population (unemployment figures only include those currently on Jobseeker's Allowance, and exclude students, pensioners, the long term sick and disabled and those not currently claiming benefits). This means that the average cost of Welfare Reform to each taxpayer is over £67 per month - nearly 450 times the amount paid in benefits to fraudsters!

Who is really wasting your hard-earned tax?

By Damian Sawyer