DWP update on major change to benefits systems as it looks at 'all options'
The Minister for Transformation at the Department for Work and Pensions (DWP), responding to Conservative MP Andrew Rosindell's query on the cost of 'fraudulent Universal Credit claims', has stated that the new Labour Government "will not tolerate fraud or waste anywhere in public services, including in the social security system".
In a written reply earlier this week, DWP Minister Andrew Western remarked: "We are determined to reduce fraud and error and are currently exploring all options on how best to achieve our goal."
Earlier in the year, the then Conservative government had declared it saved the taxpayer more than £1.3 billion from fraud and error in the benefits system over the previous year, as part of its updated Fraud Plan. This came after a clampdown on thousands of fraudulent Universal Credit claims.
This action led to DWP investigators breaking up the largest benefit fraud case in UK history, resulting in convictions for a £53.9 million Universal Credit fraud.
The DWP aims to save £9bn by 2028 through an ongoing campaign against benefit fraud. Plans include recruiting extra staff to verify millions of Universal Credit claims, updating information-gathering powers, and implementing a new civil penalty to deter fraudsters, reports the Daily Record.
The Department for Work and Pensions (DWP) has recently explained whether its investigators can get in touch with a benefit claimant's neighbours if someone has accused them of benefit fraud. The DWP also answered a question about whether neighbours can record video footage as part of an investigation into benefits.
The DWP pays out State Pension and welfare benefits to around 22.7 million people across Great Britain. New figures in the 2024 Fraud and Error in the Benefit System report show that benefit overpayments added up to £9.7 billion (3.7%) over the last year.
This is an increase from the £8.3 billion figure for 2023.
The most common type of benefit fraud is when someone gets unemployment benefits while they are working. Another type is when claimants say they live alone but are actually getting financial support from a partner or spouse.
Not telling the DWP about a 'change of circumstances' - for example, that your partner is now living with you, or that you have moved house, or that a relative has died and left you some money - can also be seen as 'fraud by omission'.
While DWP investigators have many powers, the Freedom of Information release explains that whether or not they "contact a neighbour of a suspect depends on the circumstances of each case". The Department for Work and Pensions (DWP) has clarified its investigative processes, 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."
According to the DWP, the goal of their investigations is to uncover evidence which will confirm or negate whether an offence has been committed against the state and/or local authority and to determine who is responsible for the alleged crime.
On the matter of neighbours being asked to carry out surveillance on a suspected individual, the DWP was clear in their response, indicating "this would not happen".
The explanation given was unambiguous: "DWP carry out their own surveillance following strict guidelines laid down within the Regulation of Investigatory Powers Act 2000."
DWP fraud and error review
In the forthcoming financial period, the DWP's fraud and error review for the year 2024/25 will focus on randomly selected claims from six named benefits as part of their inspection measures. These benefits will be scrutinised for potential discrepancies related to fraudulent claims or errors:
Universal Credit
Housing Benefit (pension age, passported cases)
Pension Credit
State Pension
Personal Independence Payment (PIP)
Carer’s Allowance
Examples of benefit fraud
Regarding what normally constitutes benefit fraud, the DWP listed prevalent types 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 seem like a person has less money than they say they do
In every case, the Department for Work and Pensions (DWP) requires evidence that someone is receiving a benefit (such as Tax Credits or other benefits payments) that they would not normally be eligible for.
Fraud investigators possess a broad range of powers that allow them to collect evidence in various ways, including surveillance, interviews, and document tracing. These powers will expand under new proposals to include executing warrants, searching and seizing evidence, and even making arrests.
You won't be aware of the specific 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 misunderstanding that only those who are blatantly defrauding the system are investigated for benefits fraud and other offences involving the DWP.
While the DWP does respond to public reports, it also has its own advanced methods of detecting potential fraudulent activity - meaning anyone receiving benefits from the DWP could be investigated at any moment.