July 16th, 2008

Silly Money

Posted in Not the Job by 200

Bloody hell, no wonder the government want lots of free cash to boost the old coffers; it must be to make up for the billions of wasted cash the government have mis-managed over tax credits. You know tax credits, the scheme introduced to replace family allowance (& presumably to save money, why else to the government change things?).

You might also remember them because of the furore when some idiot posted CDs containing the personal details of millions of us who are claiming tax credits when they went missing.

Apparently, £14 billion has been lost in fraud, error & overpayment in just 4 years. The National Audit Office found that up to £1.5 billion was lost through fraud in 2007 alone bringing to £7.3 billion losses as a result of bogus claims in the last 4 years. £6.7 billion has been overpaid, only £2 billion of which has been taken back.

It’s really hard to comprehend. I think most people would be pretty concerned if you said a few million quid a year was just disappearing due to the inefficiency of a system brought in to streamline  & improve the process, but fourteen thousand million???

Absolutely staggering.

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  1. Ex-RUC says:

    Blooming Ada, that’s the equivalent of seven new aircraft carriers (or a whole lot of extra bobbies, but let’s stick with reality!).

    July 16th, 2008 at 20:45

  2. Litew8 says:

    Ahh… you see 200, but this is where the public sector comes in… people with no real bargaining power getting a pay-rise ranging from 1.9 to 2.5% (with inflation currently at 4.8% btw!) to help keep the costs of such glorious technicolour f-ups down! :)

    I don’t recall voting for Mr Brown… did I miss something?


    July 16th, 2008 at 21:07

  3. soapsoane says:

    I wonder sometimes when I hear these figures about ‘money lost’ and I think that really, the lost money has in some way never really been there!

    What I mean is, like the apparently ‘lost’ New Deal monies across the country, ‘lost’ money in software projects throughout the NHS.

    Perhaps this money was really leached out of the available funding by a massively expensive infrastructure that ‘had’ to be accepted by the verious organisations and groups that were given the dubious honour of ‘fronting’ what was really going on….in the name of low income people or community groups…

    A bit like the kinds of audits done in a proper way by organisations who are spotless but don’t realise the ways and means where unsuccessful and expensive projects never appear on the balance sheet.

    I can’t believe that this really happens and that low income people and community groups don’t even realise that these projects are accountable to them as noone has ever told them!

    July 16th, 2008 at 23:15

  4. dumb_me says:

    At the end of the day, the money makes its way back into the “economy”
    Even benefit crooks have to eat, drink, do drugs, watch tv and breed.
    The cash makes its way back to the retailers, who pay tax so that another load of overpayments can be made.
    For “enron” substitute “government”:

    Enron Capitalism: You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt-equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred through an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The Enron annual report says the company owns eight cows, with an option on one more.

    July 17th, 2008 at 08:49

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