Benefit claimants could have their bank accounts and social media activity monitored as the Department for Work and Pensions continues its crackdown on fraud.
According to new figures released by the DWP, fraud and error in the benefit system is falling - rates in 2023 fell to 3.6% (£8.3b) from 4.0% (£8.7b), with Universal Credit losses falling from 14.7% (£5,920m) to 12.8% (£5,540m). The statistics also reveal reduced rates of fraud, both overall and within Universal Credit.
The 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. Tom Pursglove MP, minister responsible for tackling fraud, said: "Benefit fraud is never a victimless crime, which is why it’s entirely right we stop money going to fraudsters and serious crime groups intent on exploiting the system - and is instead paid to the people who need it.
Read More: Five benefits you may be missing out on despite being eligible - check if you can get extra cash
"Cutting fraud delivers on the Prime Minister’s priorities, reducing our national debt and helping to curb inflation by protecting the hard-earned money of taxpayers. We’re starting to see the rates of fraud and error move in a positive direction, thanks to our preventative work, alongside vigorously pursuing fraudsters using the full range of our powers to show that crime does not pay."
Last year, the DWP launched a new £613m plan to stop an estimated £4b being lost in fraud and error over the next five years, reports the Daily Record. The ‘Fighting Fraud in the Welfare System’ plan sits alongside investment of £900m that will deliver £2.4b of savings by the end of next year, growing to over £9b by 2027/28.
This additional funding will allow the department to review millions of Universal Credit claims over the next five years. They also provide intelligence on new and emerging ways to identify fraud and error entering the welfare system.
As part of the fraud plan, when parliamentary time allows, DWP plans to introduce a raft of new powers, including strengthening the penalty regime by introducing a new civil penalty for cases of fraud, which will act as a deterrent to those cynically seeking to exploit the system.
The new powers would also include requirements for organisations, such as banks, to share data securely on an increased scale to check levels of savings and whether claimants are living abroad. There are also plans to increase DWP officers’ powers to conduct searches, seize evidence, and make arrests.
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
In each circumstance, the DWP will need evidence that shows that someone is receiving a benefit (a Tax Credit or benefits payment, for example) that they would not ordinarily be entitled to.
Fraud investigators have a wide range of powers which enable them to gather evidence in a number of ways, including surveillance, interviews, and document tracing. Under the new proposals, these powers will widen to include executing warrants, search and seizure of evidence and even making arrests.
What happens during a DWP investigation?
If the DWP is going to start a formal investigation against you, they will notify you either in writing, by telephone, or email - this is typically done through the post. When you are notified, you will also be told whether you are to receive a visit from a Fraud Investigation Officer (FIO), or whether they require you to attend an interview.
In the early stages of an investigation, you may not be told that one is underway until the DWP has assessed whether there is good reason to formally investigate a potential case of fraud.
Many tip-offs and reports turn out to be false, so the DWP wants to make sure that they do not waste their time on a pointless investigation. As soon as there is enough evidence of potential fraud, the DWP will launch an official investigation and notify you.
DWP investigators are allowed to gather many types of evidence against a potentially fraudulent claimant.
Most common types of evidence
inspector reports from surveillance activities
photographs or videos
audio recordings
correspondence
financial data, including bank statements
interviews with you or people you know
any evidence submitted by those who reported you
One common form of benefit fraud is falsely reporting income, or failure to report it altogether. If you are claiming unemployment benefits but are seen to attend a workplace, the DWP may talk to the owner or manager of that business to find out exactly why you are there, what work you are doing and how much you are being paid.
Investigators may also check your social media accounts and search your online profiles for pictures, location check-ins, and other evidence which may or may not be useful to them. Those who use social media a lot will leave a trail of their life and habits, often allowing investigators to piece together a picture of what that person’s life actually looks like.
If this is not consistent with the details of that person’s claim for benefits, that evidence may end up being used against them.
Read Next:
DWP clarifies PIP assessment 20-metre rule and when informal observations start
DWP rules explained as Universal Credit claimants say their payments have not increased yet
Benefits crackdown sees Universal Credit payments slashed by up to £1000 a month
How to claim Universal Credit as free support scheme extended to help people apply
The financial help you can get if you have a disabled child including grants and cash payments
