On numerous occasions, the government has warned against benefit fraud. This includes reporting changes to their circumstances. Approximately 600 calls are received each day from members of various communities who report benefit fraud. This is clearly a sign that more and more people want to put an end to those defrauding the benefits systems, says Martic Caine from www.benefitfraudexpertslondon.com/.
But, what is the actual impact of benefit fraud in the UK and how does it affect society as a whole. Tax evasion in the UK is far more prevalent than previously thought. Benefit fraud places a huge burden on the law-abiding taxpayer. Not only do taxpayer funds go to people who can actually survive without it, but it robs those who really need it.
For example, if someone is working and receiving a salary and then on top of that they are also receiving benefits from the government, they can actually be seen as receiving two incomes, while homeless are greeted with spikes when they try to find a place to sleep for the night. This means that those who are defrauding the government are stealing from those who need the money the most as well as the hard-working taxpayers who fund various benefits schemes.
Daily the benefits of those who really need the help are being cut, this has resulted in death and suffering for many families in the UK while others evade the law while claiming two incomes. The reality is that there is an increasing number of people living on the edge in the UK and that thin edge is betting thinner with each passing day.
In just one year, more than one million people made use of food banks in the UK and those who are sleeping rough in the UK has increased by more than 60%. The sad part is that many of those who are in dire positions are unable to apply for much-needed benefits while many of those who are currently on benefits, squander the funds.
The effect of benefit cheats in the UK has far-reaching effects and large losses doe the economy not only through the cost of welfare but also the loss of tax revenue. It is also estimated that the government loses approximately £73 billion a year to benefit fraud. This directly impacts the taxpayer.
The impact this has on the taxpayer is that eventually, hardworking citizens will have to fork out more on tax than ever before with less of the benefits going where they are supposed to. All those lost funds will need to be recouped from somewhere and the most obvious way the government can do this is through higher taxes.
Shockingly, benefit fraud only represents around 2% of the estimated annual fraud in the UK. Nonetheless, Benefit fraud is still very prevalent in society, Costing the poor and the rich alike. Many have suggested that due to the increase in benefit fraud, the government should institute more strict regulations and guidelines for those applying. This will further impact the ability of those needing benefits from actually receiving their benefits.