DWP clarifies if neighbours can be contacted during benefits investigation

The Department for Work and Pensions (DWP) has provided clarification on whether investigators might approach a claimant's neighbours if there's an allegation of benefit fraud against the individual.

This information came to light following a Freedom of Information (FOI) request which also inquired about the possibility of neighbours conducting video surveillance during a benefits investigation.

The DWP is responsible for distributing State Pension and welfare benefits to approximately 22.7 million people across Great Britain.

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Recent statistics revealed in the 2024 Fraud and Error in the Benefit System report indicate that the total sum of overpaid benefits over the past year reached £9.7 billion, or 3.7% of the total, marking an increase from the previous year's £8.3 billion.

Benefit fraud typically occurs when someone claims unemployment benefits while they are in fact employed, or when individuals assert they are living alone but are actually receiving financial support from a partner or spouse.

Not reporting a 'change of circumstances' to the DWP, such as a partner moving in, changing your address, or inheriting money after a relative's death, can also constitute 'fraud by omission'.

While DWP investigators hold a range of powers, the FOI response detailed that the decision to "contact a neighbour of a suspect depends on the circumstances of each case", reports the Daily Record.

The Department for Work and Pensions (DWP) has clarified its investigative procedures, stating: "During a DWP investigation we would not routinely seek information from a neighbour. There may be exceptional circumstances where they may provide a witness statement as investigators are required by law to pursue all reasonable lines of enquiry whether these point towards or away from a suspect."

The DWP further explained that the purpose of a criminal investigation is to collect evidence which will either support or refute the allegation of a crime being committed against the state and/or local authority and to identify the perpetrator.

Regarding the possibility of neighbours being asked to carry out video surveillance on a suspect, the DWP categorically stated "this would not happen".

The department elaborated on its surveillance practices, saying: "DWP carry out their own surveillance following strict guidelines laid down within the Regulation of Investigatory Powers Act 2000."

In the upcoming financial year, as part of its fraud and error review for 2024/25, the DWP plans to assess a sample of claims from six specific benefits.

The benefits under scrutiny for fraud and error by the DWP include:.

The DWP also listed common instances of benefit fraud, such as:.

- faking an illness or injury to get unemployment or disability benefits.

- failing to report income from a business or employment to make income seem lower than it actually is.

- living with someone who contributes to the household income without declaring that income to the authorities.

Falsifying accounts to make it appear as though an individual has less money than they claim is a common method of fraud.

In each case, the DWP requires evidence that someone is receiving a benefit (such as Tax Credits or other benefits payments) that they would not normally be entitled to.

Fraud investigators possess extensive powers that allow them to gather evidence in various ways, including surveillance, interviews, and document tracing. Under new proposals, these powers will expand to include executing warrants, searching and seizing evidence, and even making arrests.

Regrettably, you won't know the precise details of an investigation against you until you are informed about it afterwards - which could be in court if you are charged with a crime.

There's a widespread misconception that only those who are openly defrauding the system are investigated for benefits fraud and other offences involving the DWP.

While the DWP does act on public reports, it also has its own sophisticated means of detecting potential fraudulent activity - meaning anyone receiving benefits from the DWP could be investigated at any time.

What occurs during a DWP investigation?

If the DWP is going to initiate a formal investigation against you, they will notify you either in writing, by phone, or email - this is typically done through the post.

When you are notified, you will also be told whether you are to receive a visit from a Fraud Investigation Officer (FIO), or whether they require you to attend an interview.

In the early stages of an investigation, you may not be told that one is underway until the DWP has assessed whether there is good reason to formally investigate a potential case of fraud.

Many tip-offs and reports turn out to be false, so the DWP wants to make sure that they do not waste their time on a pointless investigation. As soon as there is enough evidence of potential fraud, the DWP will launch an official investigation and notify you.

DWP investigators are allowed to gather many types of evidence against a potentially fraudulent claimant.

Most common types of evidence.

inspector reports from surveillance activities.

photographs or videos.

audio recordings.

correspondence.

financial data, including bank statements.

interviews with you or people you know.

any evidence submitted by those who reported you.

One common form of benefit fraud is falsely reporting income, or failure to report it altogether. If you are claiming unemployment benefits but are seen to attend a workplace, the DWP may talk to the owner or manager of that business to find out exactly why you are there, what work you are doing and how much you are being paid.

Investigators may also scrutinise your social media accounts and online profiles for photos, location tags, and other potential evidence. Frequent social media users often leave a digital trail of their lifestyle and habits, which can help investigators piece together an accurate picture of their life.

If this doesn't align with the details provided in their benefits claim, this evidence could be used against them.

What if I am wrongly reported to the DWP?

False accusations of benefit fraud are not uncommon in the UK, with some research suggesting around 140,000 such reports are made annually.

Until the DWP concludes there is no case against you, there's little you can do. Co-operate as best as you can and bear in mind that those found to have falsely reported out of malice may face prosecution.

If you're worried about a current or future DWP investigation against you or someone you care about, it might be beneficial to seek advice from a legal expert.

Citizens Advice Scotland may also be able to provide free and impartial advice, you can contact them here.

You can report fraud by calling MyGov. Scot free on 0800 158 2071.