Investing to modernise and cut fraud and error in Social Security

Getting people back to work faster, giving pensioners a better service and protecting benefits against fraud and error are the aims of the investment boost in social security modernisation announced by the Chancellor, Gordon Brown, today.

The Spending Review 2000 settlement creates a Welfare Modernisation Fund for the Department of Social Security of £404 million for 2001-02, £786 million for 2002-03 and £680 million for 2003-04.

It will provide the investment to:

build a new IT system to deliver an up-to-date service to those of working age, so staff can focus more on helping claimants to find work rather than simply processing benefits;
offer a modern service to pensioners, removing the need for visits to Benefits Agency offices by making more help available over the phone;
slash fraud and error in income support and jobseekers' allowance by 25 per cent by 2004 and 50 per cent by 2006; and
reduce the cost of benefit fraud and error by over £1 billion a year by 2005-06.

Social Security Secretary Alistair Darling said:

"The DSS has suffered from years of failure to invest in computer equipment which has left it with out-of-date equipment that is not up to the job and is prone to failure. We can now replace our entire IT system and by doing so drive out fraud and error as well as provide a better service for the public."

Notes for editors

1. The overall settlement for DSS is as follows:

£ million	2000-01	2001-02	2002-03	2003-04
Department of Social Security	3225	3450	3466	3495
Welfare Modernisation Fund	-	404	786	680
Total*	3225	3854	4252	4175
of which: Resource Budget	3193	3751	4144	4141
Capital Budget	32	103	108	34
* Departmental Expenditure Limit

2. The investment to modernise the social security system will deliver:

the replacement of the outdated DSS mainframe computer systems;
a new computer system to support the new, fairer system of child support;
electronic claim forms - reducing the number of forms claimants need to complete, enabling the roll out of ONE and freeing up staff time from clerical benefit processing to advising claimants on getting back to work;
a new centralised service to allow pensioners to sort out their claims by telephone - or in due course by the internet if they prefer - without needing to visit their Benefits Agency office. The new service will also make it easier for them to claim the Minimum Income Guarantee, encouraging take-up amongst the poorest pensioners;
personal computers in all Benefits Agency offices to replace outdated terminals so staff can send claimants individualised letters, provide on-screen guidance and more effectively manage cases; and
a new payment system that pays benefits directly into bank accounts.

3. The money in the Welfare Modernisation Fund will be ring-fenced, to ensure it is really spent on IT projects and other modernisation, not more bureaucracy. Outside the Welfare Modernisation Fund, there will be no growth in real terms in the cost of social security administration over the next three years.

4. DSS will also receive additional resources from the cross-cutting review of ONE and welfare-to-work to extend the active management of incapacity benefit claimants.

5. For further details, please call the DSS press office on 020 7238 0763 / 0762.

External links

Department of Social Security (DSS)