The Government is cracking down on benefit fraud with a plan to save an estimated £4 billion being lost in fraud and error over the next five years.
The Department of Work and Pensions (DWP) opened 18,691 investigations into alleged benefit fraud up to the end of March 2023, as part of the £613million drive announced last year.
More than 20 million people across the UK claim some form of benefit from the DWP, including Universal Credit and the state pension, and it took around a year - or 235 working days - on average in 2022-3 to complete a benefit fraud investigation, according to The Mirror.
Read more: Thousands of pensioners are missing out on eight perks worth over £5,000 a year
The common examples of benefit fraud investigated include:
- Faking an illness or injury;
- Failing to report income from a business or employment to make income seem lower;
- Living with someone who contributes to the household income without declaring it;
- Falsifying accounts.
According to guidance on GOV.UK, you may also be visited by a Fraud Investigation Office or asked to attend an interview about your claim, although in the early stages, you may not know an investigation is underway.
DWP investigators are allowed to gather many types of evidence to assess whether there is good reason to investigate a potential case of fraud, such as surveillance, interviews, and document tracing. If your claim is suspicious, you will be notified about it, usually be in writing.
No official date has been confirmed by the Government into when new powers will start. Under the new proposals, the DWP investigators powers will widen to include executing warrants, search and seizure of evidence and even making arrests. They will 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.
The most common types of evidence currently used to investigate fraud includes:
- 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
- Social media accounts and online profiles. If your social media posts are not consistent with your claims for benefits, this evidence may be used against you.
What happens if you’re suspected of benefit fraud
You’ll be contacted by the Department for Work and Pensions (DWP), HM Revenue and Customs (HMRC), the Defence Business Services or your local authority if you’re suspected of fraud. Your benefit may be stopped while you’re investigated but you will get a letter telling you about this if it happens.
You may be visited by Fraud Investigation Officers (FIOs) or asked to attend an interview to talk about your claim - this is called an ‘interview under caution', when FIOs will gather facts about your case and decide whether to take further action. An ‘interview under caution’ is a formal interview that is often recorded. It could become part of a criminal investigation against you.
What happens after a benefit fraud investigation
If you’ve committed or attempted fraud, one or more of the following may also happen:
- You’ll be told to pay back the overpaid money
- You may be taken to court or asked to pay a penalty (between £350 and £5,000)
- Your benefits may be reduced or stopped
Losing benefits if you’re convicted of benefit fraud
Your benefits can be reduced or stopped for up to three years if you’re convicted of benefit fraud. The amount of time they’re stopped for depends on how many times you’ve committed fraud.
Only certain benefits can be reduced or stopped. These are called ‘sanctionable benefits’. But if you commit fraud on a benefit that cannot be reduced or stopped, your other benefits can be reduced instead.
Universal Credit, Housing Benefit and Pension Credit can be reduced or stopped if you commit benefit fraud, but contain benefits such as Child Benefit, State Pension and PIP can't. For a full list, see here.
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