DWP 'all options' update on Universal Credit fraud crackdown

The Minister for Transformation at the Department for Work and Pensions (DWP) has taken a firm stance on combating public service fraud, stating that the new Labour Government "will not tolerate fraud or waste anywhere in public services, including in the social security system", this was in response to Conservative MP Andrew Rosindell's query regarding the financial impact of 'fraudulent Universal Credit claims'.

Responding earlier this week, DWP Minister Andrew Western wrote: "We are determined to reduce fraud and error and are currently exploring all options on how best to achieve our goal."

In a bid to protect the public purse, the previously seated Conservative government had announced earlier this year significant savings of over £1.3 billion from fraud and error in the benefits system, coinciding with the release of the latest iteration of its Fraud Plan. This declaration came alongside an intensive crackdown on false Universal Credit claims.

The meticulously coordinated efforts by DWP investigators recently culminated in breaking up the largest benefit fraud operation in UK history, leading to guilty verdicts for a massive £53.9 million Universal Credit fraud.

Further cementing their commitment to eliminating fraud, the DWP is charting a course to recoup £9bn through ongoing stringent measures targeting benefit fraudsters up to 2028. These measures will involve recruiting extra personnel to verify the accuracy of millions of Universal Credit applications, revamping the department's powers for information collection, and imposing new civil penalties to discipline those found guilty of fraudulent acts, reports the Daily Record.

The DWP has shed light on whether its investigators can question neighbours in the event of an alleged benefit fraud claim, according to a recent Freedom of Information (FOI) request that also delved into the possibility of neighbours conducting video surveillance during a welfare investigation.

Providing financial support like the State Pension and other benefits to over 22.7 million individuals in Great Britain, the DWP disclosed new figures in the 2024 Fraud and Error in the Benefit System report. A startling rise in benefit overpayments was revealed, with the total hitting £9.7bn (3.7%) last year, up from the previous year's £8.3bn.

Benefit fraud often occurs when someone claiming unemployment benefits continues working, or when claimants allege to live alone whilst being financially backed by a partner or spouse.

Not updating the DWP about significant changes in one's life, be it moving in with a partner, changing addresses, or inheriting money after a relative's death, could also constitute 'fraud by omission'.

Although DWP officials wield several investigative powers, the FOI statement specified that the decision to "contact a neighbour of a suspect depends on the circumstances of each case".

The Department for Work and Pensions (DWP) has clarified its stance on investigations, 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 goal of a criminal probe is to collect evidence to establish or refute whether a crime against the state and/or local authority has occurred and to pinpoint the perpetrator.

On the matter of neighbours being asked to carry out video surveillance on a suspect, the DWP was clear, saying "this would not happen".

They elaborated, "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.