The Department for Work and Pensions (DWP) is vowing to combat fraud and error in the benefits system – including the recovery of debts incurred through Personal Independent Payments (PIP). The new pledge comes after Conservative MP Sir John Hayes queried the DWP about the measures being taken to “tackle people fraudulently claiming PIP”.
In a written reply, DWP Minister Andrew Western outlined new strategies being implemented to “prevent fraud entering the system based on the types of cases and trends we have seen”, which includes “introducing more rigorous checks for customers changing personal details, including bank accounts”. Mr Western stated: “DWP is committed to tackling fraud and error in the benefits system and to the recovery of debts, including those generated by Personal Independent Payments.
“Working closely with counter fraud experts, the DWP has introduced measures to prevent fraud entering the system based on the types of cases and trends we have seen.”
These include:
- Strengthening the Identity and Verification Process to prevent fraudulent cases entering the system
- Introducing more rigorous checks for customers changing personal details, including bank accounts
- Delivering awareness sessions for Case Managers and Healthcare Professionals, reinforcing action to take when suspicious cases are identified – for example, fake documents, reports the Daily Record.
The minister went on to say: “DWP is delivering against key counter fraud activity, including investing in counter fraud professionals and building data analytical capabilities. The new Fraud, Error and Debt Bill will bring forward new measures to tackle fraud in the system.
“Details on the measures the Government will be legislating will be presented to Parliament in due course.” The DWP provides benefits to over 23 million people across Great Britain, including 3.6 million on Personal Independence Payment (PIP). The most recent DWP report reveals that £90 million was lost to fraud and error in the PIP system in 2023/24.
Fraud and error in the welfare system currently cost taxpayers nearly £10 billion annually, and since the pandemic, a total of £35 billion has been wrongly paid to those not entitled to it. However, it’s crucial to note that this figure also includes criminal gangs, not just benefit claimants.
Fraud
The GOV. UK website provides guidance on what constitutes fraud, explaining that it involves claims where all three of the following conditions apply:
- benefit payment stops or reduces as a result of a review of the claim.
- the conditions for receipt of benefit, or the rate of benefit in payment, are not met
- the claimant can reasonably be expected to be aware of the effect on their entitlement
Claimant error
Claimant error refers to overpayments where claimants have provided inaccurate or incomplete information, or failed to report a change in their circumstances leading to an overpayment, but there is no evidence of fraudulent intent on the claimant’s part.
Official error
Official error occurs when benefits have been incorrectly paid due to a failure to act, a delay, or a mistaken assessment by the department, a local authority, or His Majesty’s Revenue and Customs, to which no one outside of that department has materially contributed, regardless of whether the business unit has processed the information.
In a statement made in December, Mr Western offered reassurances regarding the proposed Fraud, Error and Debt Bill, stating that “the Department for Work and Pensions (DWP) will not gain access to claimants’ bank accounts or details about how they spend their money.”
He elaborated by explaining that banks and financial institutions would only provide “limited information” to assist the DWP in verifying eligibility for benefits by highlighting potential discrepancies with the rules. The DWP minister added: “As set out by the National Audit Office, access to data is key to prevention and detection of incorrect payments. The Eligibility Verification Measure (EVM) in the proposed Fraud, Error and Debt Bill will not give DWP access to any bank accounts, nor any information on how claimants spend their money.”
He went on to say: “It will require banks and financial institutions to share limited information with the DWP to help verify benefit eligibility by flagging possible conflicts with eligibility rules – for example the £16,000 capital limit in Universal Credit. The information gathered will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity.”
He then noted: “The legislation will set out key safeguards, including reporting mechanisms and independent oversight. No benefit entitlement decision will be made solely because of the data obtained under EVM and a final decision on benefit entitlement will always involve a human agent.
“If a claimant wishes to challenge or appeal a benefit decision, they can do so following DWP’s appeals processes.”