DWP to review Universal Credit, PIP and State Pension claims for fraud or errors

Benefit claimants could have their awards reviewed by the Department for Work and Pensions this year as part of a crackdown on fraud.

Latest DWP figures show that fraud and error in the benefit system is falling. In the 2022/23 financial year, fraud and error rates fell to 3.6% (£8.3b) from 4% (£8.7b). Figures for 2023/24 are due to be published soon.

More than 20 million people across Britain are claiming State Pension or at least one benefit from the DWP to help with the extra costs of day-to-day living. But the Government has been clear it will crackdown on those exploiting the benefits system as they are 'stealing from those who most need help'.

• Read More: DWP Universal Credit claimants to start getting more money from next week - list of new rates

• Get all the latest money news and budgeting tips from Chronicle Live with our free newsletter

During the 2024/25 financial year, the DWP will measure a sample of claims from five specific benefits and the State Pension as part of its fraud and error exercise, reports the Daily Record. The DWP has previously confirmed that it now has “3,100 full time equivalent agents reviewing Universal Credit claims”.

DWP fraud and error review financial year ending 2024

The DWP will be measuring the following benefits for fraud and error:

• Universal Credit

• Housing Benefit (pension age cases)

• Pension Credit

• State Pension (classed as a contributory benefit)

• Personal Independence Payment (PIP)

• Disability Living Allowance (DLA)

In an update on GOV.UK, the DWP also announced the State Pension measurement will include claims administered through the ‘Get Your State Pension online' service in the financial year ending 2024. This will also see the measurement of DLA for the first time since the financial year ending 2005. The DWP intends to publish the fraud and error report for the financial year ending 2024 in May of the same year (2025).

Definitions of Fraud, Claimant Error and Official Error

Fraud

Claims where all three of the following conditions apply:

• the conditions for receipt of benefit, or the rate of benefit in payment, are not being met

• the claimant can reasonably be expected to be aware of the effect on their entitlement

• benefit payment stops or reduces as a result of the review

Common examples of benefit fraud

• 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

Claimant Error

The claimant has provided inaccurate or incomplete information, or failed to report a change in their circumstances, but there is no evidence of fraudulent intent on the claimant’s part.

Official Error

The benefit has been paid incorrectly due to a failure to act, a delay or a mistaken assessment by the DWP, a local authority or HM Revenue and Customs (HMRC), to which no one outside of that department has materially contributed, regardless of whether the business unit has processed the information.