The UK government is spending three and a half times more chasing fraud and error in the benefit system than they are pursuing tax-dodging millionaires, the Spring Statement has revealed.
Buried in Rishi Sunak’s mini-budget are figures showing that HMRC is investing £161 million to increase compliance with tax revenues to make sure businesses pay the tax they owe.
But the documents also show that the DWP is to spend £510 million, vastly more, to prevent fraud and error in the benefits system and “to collect more debt” from people on Universal Credit.
The DWP estimates it can claw back £3.15 billion from benefit claimants while the HMRC estimate that £3 billion can be raised from putting additional resources into chasing tax dodgers.
SNP MP Chris Stephens, who spotted the figures, said: “The government appears willing to spend three and a half times more chasing error and fraud in the benefits system than nailing the unpaid taxes of millionaires.”
Stephens, who sits on the Commons DWP committee, said he would raise the matter in parliament.
He said “Before the pandemic the tax gap of unpaid revenues was £70 billion. It is simply astonishing that this is receiving less additional resources than Social Security fraud and error.”
“Once again the Tories punish the poor at the expense of the super-rich.”
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