People on Universal Credit could see claim…

People on Universal Credit could see claim investigated as part of new DWP fraud plan

Work and Pensions Secretary Mel Stride MP has said fraud in the benefits system has fallen 10 per cent since the implementation of a new £613 million plan to fight fraud in the welfare system in May 2022. He explained how benefits provide “a safety net for vulnerable people, but nobody should be allowed to abuse it”.

In a new video shared on social media, the Department for Work and Pensions (DWP) boss outlined several key measures are in place to help “deliver savings of over £9 billion over the coming years”. This includes recruiting 1,000 new agents to identify errors in existing Universal Credit claims and “bolstering” the counter fraud team by 1,400 investigators.

The latest national statistics confirm in the last year fraud and error rates in 2023 fell to 3.6 per cent (£8.3 billion) from 4.0 per cent (£8.7 billion), with Universal Credit losses falling from 14.7 per cent (£5,920 million) to 12.8 per cent (£5,540 million).

In the video, Mr Stride said: “It’s a year since we published our Fraud Plan and over the last year, fraud has reduced by 10 per cent. Our welfare system provides a safety net for many vulnerable people, but nobody should be allowed to abuse it.

“We’re continuously improving our systems to keep up with fast changing criminal tactics with new measures such as recruiting 1,000 new agents to identify errors in existing Universal Credit claims, bolstering our counter fraud team by 1,400, investing in a package to further enhance our data analytics, improved customer communication and expanding our capacity to tackle economic, serious and organised crime.

“There’s much more to do, but we’re making real progress. Our Fraud Plan is helping to deliver savings of over £9 billion over the coming years.”

More than 20 million people across Great Britain are claiming State Pension or benefits from the DWP to help with the additional costs of day-to-day living. But the UK Government has been clear that it will crack down on those exploiting the benefits system as they are stealing from those who most need help.

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

Definitions of Fraud, Claimant Error and Official Error

The DWP defines the three types of fraud and 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

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 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.

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