‘Confusing’ prescription penalties slammed by MPs

30 September 2019

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The Commons Public Accounts Committee said it backed efforts to deter fraud, but the penalty system does not achieve this efficiently. It was not fit for purpose and must be overhauled.

In a report, the committee said the Department of Health and Social Care and NHS England were complacent about the problems in the penalty charge process. The Department acknowledges some patients may not seek treatment as they are afraid of being given a penalty charge, the report said.

The national bodies justified their approach as most exemptions are claimed correctly and the system generated income for the NHS. But the PAC added: ‘They seem to have lost sight of the fundamental importance of helping people claim what they are entitled to.’

Meg Hillier

Committee chair Meg Hillier (pictured) said the system was confusing – the Department had produced a 24-page booklet to explain a single-page prescription form. She called on the Department to set out how it will make exemptions more understandable and help the Department for Work and Pensions improve information for benefit claimants.

She added: ‘A presumption of guilt means penalty charge notices are issued too readily, particularly where vulnerable people are concerned. Yet where there is clear evidence that people are persistently committing fraud by making false claims, there has been a failure to take effective action.’

The call for reform came as the Labour Party announced it would abolish prescription charges in England if it wins the next general election. There are no charges elsewhere in the UK.

At its conference in Brighton, the party said this policy would cost £745m a year. This cost included income of £576m from prescription charges that would no longer be received and an estimated extra cost of £170m due to increased uptake following abolition. Administration costs would be reduced by £1m, the party said.