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Fraud

DWP Reaffirms Commitment to Combat Benefit Fraud

Strategic Insights

— 1 min read

The Department for Work and Pensions (DWP) has reaffirmed its vow to combat benefit fraud and error, including reclaiming debts from Personal Independent Payments. In response to an inquiry by Conservative MP Sir John Hayes, DWP Minister Andrew Western detailed new initiatives being put in place to prevent fraudulent activity from entering the system based on observed patterns and case types. These measures include implementing more stringent checks when claimants modify personal details, such as bank accounts.

Key Takeaways:

  • The DWP is dedicated to tackling fraud and error within the benefits system and recovering debts, including those from Personal Independent Payments.
  • The department has introduced measures to prevent fraudulent activity based on observed cases and trends, including introducing more rigorous checks for customers changing personal details, including bank accounts.
  • The DWP is making progress in key counter-fraud activities, including investing in counter-fraud professionals and enhancing data analytical capabilities.
  • The new Fraud, Error, and Debt Bill will introduce additional measures to tackle systemic fraud, including the Eligibility Verification Measure (EVM) which will require banks and financial institutions to share limited information with the DWP to verify benefit eligibility.
  • The EVM will not give the DWP access to any bank accounts, nor any information on how claimants spend their money, but will flag possible conflicts with eligibility rules.
  • The legislation will set out key safeguards, including reporting mechanisms and independent oversight, and claimants will still have the opportunity to challenge or appeal a benefit decision following DWP's appeals processes.
  • Fraud and error within the welfare system currently burden taxpayers with nearly £10 billion each year, and £35 billion has been erroneously paid to those not entitled to it since the onset of the pandemic.
  • The DWP delivers benefits to over 23 million individuals across Great Britain, including 3.6 million on Personal Independence Payment PIP.

Statistics:

  • £90 million was lost to fraud and error in the PIP system in 2023/24.
  • Fraud and error within the welfare system currently burden taxpayers with nearly £10 billion each year.
  • £35 billion has been erroneously paid to those not entitled to it since the onset of the pandemic.

Sources:

  • Department for Work and Pensions
  • Conservative MP Sir John Hayes
  • DWP Minister Andrew Western
  • Daily Record
  • Express
  • GOV.UK
  • National Audit Office

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