Some benefit claimants will face more checks, officials have announced. The warning was revealed by the DWP in a bid to clamp down on errors and fraud.
The Department for Work and Pensions (DWP) says it willfocus on reclaiming debts from Personal Independent Payments (PIP). The department announced the move after being questioned by Conservative MP Sir John Hayes over moves to “tackle people fraudulently claiming PIP”.
DWP minister Andrew Western detailed new tactics 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 said: “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.”
Signage outside the Department of Works and Pensions in central London
(Image: Chris Young/PA Wire)
He said the DWP is collaborating with counter fraud specialists. He added that it has introduced initiatives to crack down on fraudulent activities based on observed case types and trends.
These measures encompass:
- Introducing more rigorous checks for customers changing personal details, including bank accounts
- Strengthening the Identity and Verification Process to prevent fraudulent cases entering the system
- 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.
What new powers is the DWP introducing to tackle fraud and error?
Mr Western also highlighted the department’s ongoing efforts, saying: “DWP is delivering against key counter fraud activity, including investing in counter fraud professionals and enhancing data analytical capabilities. The new Fraud, Error and Debt Bill will introduce additional methods to combat fraud within the system.”
A spokesperson announced: “Details on the measures the Government will be legislating will be presented to Parliament in due course.” According to figures, the DWP supports over 23 million individuals across Great Britain, including 3.6 million on Personal Independence Payment (PIP). Reports from the DWP indicate that in the year 2023/24, £90 million was lost through fraud and error in PIP alone.
How much does welfare fraud and error cost UK?
Annually, fraud and error in the welfare system cost nearly £10 billion to the taxpayer, with the total amounting to £35 billion since the onset of the pandemic. Of note, this significant figure includes illegal activities by organised criminals as well as regular benefit claimants.
Will the DWP be able to look at bank accounts?
In a December announcement, Mr Western provided clarifications on the upcoming Fraud, Error and Debt Bill, ensuring 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 clarified that banks would be divulging just “limited information” which would allow DWP to check benefit eligibility and spotlight inconsistencies with the policies. The DWP minister further noted: “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.”
The DWP will carry out more checks
(Image: SCU)
Expanding on this, he said: “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.”
Benefit claimants will still be able to dispute a decision using existing DWP appeal procedures if they are unhappy with the outcome, which he pointed out: “If a claimant wishes to challenge or appeal a benefit decision, they can do so following DWP’s appeals processes.”