The NAO qualified the accounts of the fund for the 13th year running today citing £37m paid out in compensation for those who suffered as a result of delays in implementing a new computer system, the National Insurance Recording System – a controversial joint venture with Andersen Consulting.
David Davis, chairman of the PAC, described the figures, which also included £47m of fraud and £45m of miscalculations, as a ‘depressing tale’ when considered along with other recent reports on benefits.
‘Taken together they suggest a social security system plagued by fraud and riddled with error,’ he said.
The NAO revealed the computer system may be up to four years shy of its original completion date of 1997.
Davis said: ‘The delays have caused pensioners, widows and benefit claimants hardship and distress. And so far it has cost the taxpayer £53 million to sort out the problems arising, including paying £37m to compensate pension providers and benefit claimants.
Further delays on new Andersen Consulting national insurance system