The DWP (Department for Work and Pensions) could monitor your social media and bank accounts as part of a new crackdown on fraud. The DWP has released new official figures around the number of accounts of fraud and error in the benefit system, as the UK government revealed plans to continue to drive down such behaviour and protect tax payers' money.
The latest national statistics state that in the last year fraud and error rates in 2023 fell to 3.6% (£8.3 billion) from 4% (£8.7 billion), with Universal Credit losses falling from 14.7% (5,920 million) to 12.8% (£5,540 million). The Daily Record reports that the figures also revealed rates of fraud, both overall and within the Universal Credit benefits scheme.
As more than 20 million people across the country are currently claiming State Pension or benefits from the DWP to help with the rising costs of living, the UK government has laid out plans to crack down on those exploiting the system and prevent people stealing money from those who need it most. Tom Pursglove, MP, is the minister responsible for tackling fraud and 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.
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"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.”
At the end of March 2023, the DWP had 18,691 open investigations into alleged benefit fraud recorded on its reporting systems, however it is worth noting that not all of these will be cases of fraud and all will face due process. In the reporting year of 2022/23, it took an average of 235 working days for the DWP to complete a benefit fraud investigation.
Mr Pursglove explained the reason for the amount of time in a recent written response to a query posed by Labour MP, Justin Madders. The DWP Minister said: "These investigations vary significantly in their nature and complexity and no set time can be attributed to an individual investigation.
"Our investigators, working with the Crown Prosecution Service where appropriate, seek to expedite all investigations as quickly as possible to ensure the criminal burden of proof is met.” Last year the DWP launched a new £613 million plan to stop an estimated £4 billion being lost in fraud and error over the next five years.
Dubbed the 'Fighting Fraud in the Welfare System' plan, it sits alongside an investment of £900 million that will deliver £2.4 billion of savings by the end of next year, growing to over £9 billion 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.
Definitions of Fraud, Claimant Error and Official Error
The DWP defines the three types of fraud and error as follows:
Fraud
This is where claims of 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
This is when 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
This is when 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.
Common forms of fraud and how it can be investigated
The most common form of benefit fraud is when a person receives unemployment benefits while working. Another is when claimants state that they live alone, but are financially supported by a partner or spouse.
Failing to inform the state about a 'change of circumstances', for example, that your partner is now living with you, or that you have moved house, or that a relative has died leaving you some money may also be seen as 'fraud by omission'. Being accused of fraud can be stressful enough, but the thought of being investigated by officials without really knowing why can lead to excessive worry.
Many investigators wear plain clothes and can show up at your home or work at any time, which could be frightening. But having some knowledge about DWP investigations can make all the difference, enabling you to live your life as normally as possible while an investigation is underway.
Usually, benefits-related fraud occurs where someone has claimed benefits to which they were not entitled on purpose, such as by not reporting a change in circumstances or by providing false information.
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. Unfortunately, you won’t know the exact details of an investigation against you until you are told about it afterwards - which may be in court if you are charged with an offence.
There is a common misconception that the only people who get investigated for benefits fraud and other offences that involve the DWP are those who are openly scamming the system. While the DWP does act on reports from the public, it also has its own sophisticated means of detecting when fraudulent activity might be taking place - which means anyone receiving benefits from the DWP could be investigated at any time.
What a DWP investigation entails - including the evidence required
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.
The most common types of evidence include things like:
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
Checking social media accounts
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.
What about false reports?
False reports of benefit fraud are common in the UK, with some studies indicating there are around 140,000 made each year.
Until the DWP determines that there is no case against you, there is little you can do. Co-operate as best as you can and remember that those found to have reported falsely through malicious reasons may end up being prosecuted.
If you are concerned about a current or future DWP investigation against you or someone you care about, seeking advice from a legal expert could help.
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