The Department for Work and Pensions (DWP) is facing mounting pressure to clamp down on benefit fraud after figures revealed that fraudulent claims by pensioners have soared to a record £210 million. The TaxPayers' Alliance has branded the situation a 'disgraceful betrayal' of honest pensioners, as criminals in their 90s have been caught helping themselves to taxpayers' cash.
Record fraud levels among over-65s
According to DWP data, the amount of cash fraudulently claimed by people aged 65 and over has jumped from £120 million to £210 million in just five years. The fraud and error rates for Pension Credit have also risen, with fraudulent claims increasing from 2.4 per cent to 3.5 per cent over the same period. This represents a significant drain on public funds, with £77 million wrongly claimed by individuals who had hidden assets or savings.
Additionally, £67 million was obtained by claimants later found to own a home abroad, which is prohibited under the rules. A further £15 million was taken by those who had cash-in-hand jobs or were secretly employed while claiming benefits.
TaxPayers' Alliance demands action
Shimeon Lee, policy analyst at the TaxPayers' Alliance, said: 'This £210 million fraud explosion is a disgraceful betrayal of honest pensioners. Scammers are stealing from taxpayers and draining support from those who genuinely need it. Ministers must recover every penny possible and make sure fraudsters face the full force of the law.'
Benefit fraud occurs when someone claims benefits they are not entitled to, either by failing to report a change in circumstances or by providing false information. The DWP has acknowledged the issue and is taking steps to address it.
DWP response and measures
A DWP spokesperson said: 'We’re taking action to fix the broken welfare system we inherited, including extending the Targeted Case Review to Pension Credit – building on £1 billion already saved from incorrect payments. We’re also launching a dedicated campaign to make sure claimants know their responsibilities, because the vast majority want to do the right thing and we want to make it easy for them to do so.'
The Targeted Case Review programme aims to identify and correct incorrect payments, and its extension to Pension Credit is expected to help recover more funds. The DWP's campaign will focus on educating claimants about their obligations, including reporting changes in circumstances such as moving abroad, acquiring assets, or starting work.
