More than 20 million people across the UK are claiming State Pension or benefits from the Department for Work and Pensions (DWP) to help with the additional costs of day-to-day living. However, earlier this year, the DWP shared details of a new £613 million plan to stop an estimated £4 billion being lost in fraud and error over the next five years.
Between 2021 and 2022, there have been 600 convictions for benefit fraud across the UK and the ‘Fighting Fraud in the Welfare System’ plan outlines how the DWP is creating a new 2,000-strong team dedicated to reviewing more than two million existing Universal Credit claims.
This new team will review the entitlements and circumstances of Universal Credit claims that the DWP deems are at risk of being incorrect, including suspicious cases which entered the system during the height of the pandemic - this review is expected to stop around £2 billion of losses due to fraud and error over the next five years.
The DWP reports that last year, there was an estimated £6.3 billion of welfare fraud, up from £2.8 billion from the year before, coupled with £2.1 billion of error, the combined loss as a result of fraud and error was £8.4 billion or 3.9% of benefit expenditure.
Investigations into claims can be made at anytime, even over the festive period.
The DWP’s definition of benefit fraud is when “someone obtains state benefit they are not entitled to or deliberately fails to report a change in their personal circumstances.”
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'.
Many investigators wear plain clothes and can show up at your home or work at any time. 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 - you can read more about these here.
Unfortunately, you won’t know the exact details of an investigation against you until you are told about it afterwards.
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 - even over Christmas and New Year.
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.
What if I am falsely reported to the DWP?
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.
Citizens Advice Scotland may also be able to offer free and impartial advice, you can contact them here.
You can report fraud by calling MyGov.Scot free on 0800 158 2071 or by post here.
To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
READ NEXT
Successful claim for new £25 weekly child payment could automatically award two more benefits
- 15 ways to increase your monthly income before end of the year
New cost of living payments worth up to £1,350 announced for millions of people next year
New website helps Scottish households check for extra financial support
