'No urgency': Ministers no further forward with collecting £36m missing benefits debt
Shirley Anne Somerville was quizzed on the government’s plans to recover £36 million in benefits debt after parting ways with the DWP
Ministers have confirmed there is still no plan in place to recover £36 million of outstanding benefits debt.
Social Security Scotland parted ways with the DWP’s recovery scheme after the SNP deemed a Westminster benefits crackdown too punitive.
The move left the SNP’s benefits agency with no way to claw back outstanding debt when the agreement ended on March 31.
Shirley-Anne Somerville, the welfare secretary, was asked about progress in the Holyrood chamber on Wednesday.
Scottish Conservative social security spokesman Craig Hoy asked for the government’s plan on debt recovery and how much has been secured since the end of March.
Ms Somerville said: “The Scottish Government always seeks to protect the public purse and recover overpayments wherever cost-effective and reasonable to do so.
“These particular cases are no different.”
She went on to say Social Security Scotland is working with the DWP to transfer the necessary case data and “will assume responsibility for that debt recovery when this is complete”.
“As the agency agreement underpinning debt recovery ended on March 31, and the necessary data has not yet been transferred from the DWP, it is not possible to recover debt at this point,” she added.
Mr Hoy said the response showed a “shocking” lack of urgency from the SNP.
He said: “Taxpayers will be shocked that there is still no urgency from the SNP to recover tens of millions of pounds of their money.
“Ministers clearly have no interest in reining in their out-of-control benefits bill and clamping down on those abusing the system.”
The Tory MSP also asked Ms Somerville whether the government would consider introducing a dashboard that would “robustly monitor” how much money has been collected.
He added: “SNP ministers need to get a grip of their social security agency and leave no stone unturned when it comes to recovering money given out in error.”
The benefits secretary rejected the suggestion, saying Social Security Scotland already publishes information and data.
She added: “I think it is important for us to look at the powers that Social Security Scotland has and will continue to use to ensure that, as I said in my original statement, we do recover overpayments.
“I would put on the record that the level of fraud within social security is exceptionally small, particularly for disability benefits.
“But where there is fraud, it will be taken seriously, and the powers that the agency have will be used to their full extent.”
Labour promised an extensive crackdown on benefit fraud and introduced new measures that would allow the DWP to suspend driving licences when debtors owed money.
It also gave the agency powers to take money directly from those people’s bank accounts.
Ms Somerville said the legislation did not fit Social Security Scotland’s ethos of dignity and respect.
Previously the DWP recouped owed monies on behalf of the Scottish agency as outsourcing debt recovery was more efficient.
The DWP holds the records of what debt is owed and by who, which will have to be transferred to the Scottish agency.
Social Security Scotland will then have to decide how to recover the tens of millions in debt.
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