Tax evasion vs benefit fraud
Given the time and attention that is devoted to benefit fraud both in the media and by Government, you might be forgiven for thinking that this is the issue that is costing the country the most. However, an analysis of HMRC data shows that
In the past year, the total spent on all kinds of welfare benefits was £164 billion, around £1.2 billion of which is attributed to fraud. This is just 0.7%, much lower than most people would think. By contrast, HMRC believes that the amount of tax not paid during the same period, either through avoidance, evasion or non-collection, is £34 billion.
Given that non-payment of tax is so much higher, it would make sense to focus resources on this area but while in 2011-12 there were 8,762 convictions for benefit overpayments in the year, there were just 399 convictions for tax offences. Perhaps it is time for a shift in focus away from benefit claimants and towards those who are costing this country the most.