A taxi driver from Wales has been convicted of defrauding the Department for Work and Pensions out of thousands of pounds in Universal Credit payments, despite holding substantial personal savings that should have disqualified him from receiving support.
Fraudulent Claims During Pandemic
Gergely Tomasovszky, a 43-year-old cab driver, initially applied for Universal Credit in April 2020, at the height of the COVID-19 pandemic and associated lockdown measures. During his application process, he informed DWP officials that he possessed approximately £6,000 in savings through various investments and capital holdings.
However, subsequent investigations revealed a starkly different financial reality. South Cumbria Magistrates' Court heard compelling evidence that Tomasovszky actually controlled savings totalling an impressive £85,000 at the time of his application.
Substantial Financial Deception
The fraudulent activity spanned more than three years, occurring between April 7, 2020, and July 6, 2023. During this extended period, Tomasovszky successfully obtained £7,203.79 in Universal Credit payments to which he was not entitled under DWP eligibility criteria.
Universal Credit regulations clearly state that single claimants, or those living with a partner, must typically possess no more than £16,000 in combined money, savings, and investments to qualify for support. Those with savings between £6,000 and £16,000 face reduced payments, while individuals with less than £6,000 in savings receive their full entitled amount without reduction.
Legal Consequences and DWP Response
Magistrates delivered a significant community sentence, ordering Tomasovszky to complete 130 hours of unpaid work as part of a comprehensive 12-month community order. This punishment reflects the serious nature of benefits fraud within the UK's legal system.
A DWP spokesperson emphasised the department's firm stance on such cases, stating: "Benefit fraud is not a victimless crime as it takes money away from those who genuinely need support. As seen in this case, we take all fraud extremely seriously and we will continue to take legal action against those trying to scam the system."
Understanding Universal Credit Savings Rules
The DWP operates a clear taper system for savings affecting Universal Credit payments:
- Savings below £6,000 do not affect Universal Credit awards
- Savings between £6,000 and £16,000 reduce payments by £4.35 for every £250 within this bracket
- An additional £4.35 reduction applies for any remaining amount not constituting a complete £250 increment
Applicants must declare all financial assets during the claims process, including various savings and investment vehicles. The DWP specifically notes: "You'll be asked to tell us about all the money, savings and investments you have when you make your claim. If a type is not listed, for example National Savings certificates, you can let us know using the 'other savings and investments' option."
This case serves as a stark reminder of the legal obligations surrounding benefits claims and the serious consequences of providing false financial information to government departments.
