New Deal Fraud: Over 278 full fraud investigations

Posted on July 2nd, 2009.

Post Categories: DWP • New Deal • new deal fraud
Tags: Counter Fraud Investigation Division, Flexible New Deal, Jobcentre Plus Contractor and Programme Investigation Unit, new deal fraud

Evidence from 2003 has been uncovered showing information on fraud investigations of New Deal in the first 5 years of New Deal. You may have heard about cases regarding companies such as A4e, Maatwerk and Working Links being investigated for fraud, however, official Parliament documents show that up until winter 2002 there was over 278 in depth fraud investigations against New Deal providers, almost 2000 allegations of fraud committed by New Deal prime contractors and the rate of cases year on year seems to be on the increase. Read on for more!

1. Latest news

So, you may have read the Observer or Guardian, listened to Radio 5 show or watched Channel 4 news – or a combination of them. You would probably know by now about A4e, Maatwerk, Pertemps and Working Links being involved in several fraud investigations. This is only what the press has picked up on.

2. “New Deal Fraud is rare”

There are a lot of people going round (either employees of the fraudsters, DWP, JCP or ministers or some other people who think those who beg to differ are all sad conspiracy theorists or something) saying that these are isolated cases or that such New Deal fraud is rare: I tell you, it is not!

3. New Deal Scandal and the £75 billion taxpayers’ money fraud

New Deal Scandal is a blog set up to expose the £75 billion fraud that is New Deal (and any further money being wasted for Flexible New Deal). New Deal has cost the taxpayer £75 billion and I believe it is mostly wasted to fraud – two types below:

• Fraud (both faking forms for job outcome and other techniques harder to detect i.e. exiting fraud)
• Misleading fraud (the Government distorting the truth to the taxpayer, lies to justify the spending)

I agree the Government is absolute rubbish but I don’t hate the Government – I have not made up lies about the New Deal to get people to change their opinions against the Government – whether personal against Labour or hating “the system”.

All figures etc. about these fraud investigations are from the most reliable source. They are not invented, they are not from someone elses blog, they are not from a newspaper or website, they are from the Government’s own documents which they have published via their parliament.uk website.

4. Figures of fraud (before 2003) and trends

New Deal (Fraud)

Mr. Heald: To ask the Secretary of State for Work and Pensions what has been the
(a) average annual and
(b) total level of
(i) erroneous payments and
(ii) fraud connected with the New Deal to date; how much of this money has been recovered; and if he will make a statement. [88053]

Malcolm Wicks [holding answer 19 December 2002]: Since the inception of the New Deals, all allegations of fraud have been followed up and fully investigated if the circumstances warranted it. Information on the level of erroneous payments is recorded by benefit, not by programme. Similarly, the level of fraud committed by participants in the New Deal is recorded by benefit, not by programme.

However, in 1998 we established the Jobcentre Plus Contractor and Programme Investigation Unit, as part of the Counter Fraud Investigation Division. The unit’s work includes the investigation of all allegations of fraud committed by contractors under the New Deal. The available information is in the table.

Source: http://www.publications.parliament.uk/pa/cm200203/cmhansrd/vo030320/text/30320w16.htm 20 Mar 2003 : Column 926W (20 March 2003, Official Report, columns 925–26W)

In 1998-1999, there were 165 allegations of New Deal fraud – the Government didn’t note the number of full investigations they carried out.

In 1999-2000, there were 283 allegations of New Deal fraud – the Government didn’t note the number of full investigations they carried out.

In 2000-2001, there were 570 allegations of New Deal fraud – 62 full fraud investigations were carried out.

In 2001-2002, there were 390 allegations of New Deal fraud – 99 full fraud investigations were carried out.

In Apr 2002 – Nov 2002, there were 461 allegations of New Deal fraud – 117 full fraud investigations were carried out.

This gives a total of 1,869 allegations of New Deal fraud and at least 278 full fraud investigations although for some reason the Government didn’t have the data for the first two years of records (1998-2000) – we presume they don’t keep copies of fraud investigations. This 278 could be much higher if these figures were included.

Figures above can be checked in the document above.

No information to show any prosecutions of the New Deal fraud.

Please make note of the number of fraud investigations, constantly on the increase – in the 7 month period (Apr 2002 – Nov 2002) the figure was at 117, the highest recorded (notice thats new cases, accumulative figure is 278 (of known cases) by then) – if we attempt to raise this until end of March 2003 (by linear: unlikely to be so constant) makes it 200!

I am very curious what the figures would be like for the last 6 years. If it stayed at around 200 cases a year thats 1200 cases in addition to the 278 before that, totalling 1478 fraud cases.

Personally, I am shocked at this amount! Even though only a prediction.

Lets take the 278 figure and be optimistic saying there are 50 New Deal providers nationally… It makes an average of around 5 and a half cases per a provider or one fraud case per provider per year. Dreadful stuff!

5. Hansard Answers

New Deal (Fraud)

Mr. Heald: To ask the Secretary of State for Work and Pensions pursuant to his answer of 20 March 2003, Official Report, columns 925–26W, on fraud and the New Deal,

(1) if he will make a statement on the nature of the frauds committed by contractors in relation to the New Deal; and what steps his Department has taken to prevent such frauds; [105351]

(2) if he will list, in each year in which an estimated total loss was given in his answer, the cases in which fraud was found to have occurred, and the precise level of the fraud in each case. [105352]

Mr. Nicholas Brown [holding answer 27 March 2003]: Allegations made against contractors delivering New Deal programmes fall mainly into two broad categories: allegations that the claimed outcomes were fabricated or mis-stated, and allegations that the claimed training delivered was not in fact provided.

New Deal providers are subject to thorough contractual and quality audits. These specifically consider the delivery of training against the requirements set out in the contract between Jobcentre Plus and providers. Contractual terms and conditions include appropriate clauses requiring parties to the contract to use all reasonable endeavours to safeguard Jobcentre Plus funding of the New Deal against fraud generally and, in particular fraud on the part of the provider’s directors, employees or sub-contractors.

The Department investigates all such allegations, of which some are false, some are true but caused through clerical or administrative error and others are caused by fraud.

Where evidence of fraud is found, it is reported at the earliest opportunity to the police, who are responsible for any subsequent criminal law investigation. Some reported fraud is suspected to be corporate, but most cases are investigated as internal frauds by employees of the contractor.

Since the Department’s action following investigation is often a referral to outside bodies, such as the police, it is not possible to state the outcome of each case.

Source: http://www.publications.parliament.uk/pa/cm200203/cmhansrd/vo030331/text/30331w30.htm 31 Mar 2003 : Column 603W

Mention of Police, but even with the Maatwerk case, I am still yet to learn of the Crown Prosecution Service taking further action against those involved in the fraud.

6. Action is Required

Vast action is required to end this scandal. I welcome you to help spread the word but please link to this article not copy and paste it.

Make a Comment

3 Responses to “New Deal Fraud: Over 278 full fraud investigations”

1. 1

   

   Billy says:
   

   July 2nd 2009 at 11:09 pm  

   Why is this surprise? Did anyone else listen to the recent Radio 5 investigation about this bunch of cowboys, this investigation highlighted the fact that the “referred clients” sat in a classroom doing nothing towards the learning aims/courser that the Jobcentre Plus had sent them on. Yes they achieved Key Skills, yes they achieved some kind of computer quall, but did they achieve the original plan of learning, for example PSV. This was real people speaking about their experiences with A4EI don’t think as to achieve this would have been to expensive. It really annoys me to know that three are the worst provider to adult as well as youth training in the country. When will someone in power understand that any consultant can write a tender ticking the relevant boxes but having no concept of how the contract would actually be delivered? For those people on the ground who have to deliver on a day to day basis you ask them did they do the course/training that was agreed with the jobcentre Plus adviser (not the rubbish that the A4E adviser persuade them to do)

   When will someone look at the learning plan, and then compare it with the outcomes or it the case that as long as the learner is employed or not as is the majority the original learning plan is of no relevance.

   FND will be even worse as A44 have contracts in England.

   Please, Please can someone get on the ground and speak to learners , speak to Radio 5

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