The Department for Work and Pensions (DWP) has published its annual fraud report, revealing a significant increase in losses due to fraud and error. The report confirms a full list of five benefits that are under scrutiny as part of a major crackdown on dishonest claims.
Benefits Under Review
The DWP is focusing on Universal Credit, Housing Benefit, Pension Credit, State Pension, and Personal Independence Payment (PIP). The report outlines the fraud rates for each benefit, highlighting the scale of the problem.
Rising Overpayments
According to the report, overpayments due to fraud and error reached £9.9 billion in the financial year ending April, up from £9.4 billion the previous year. The DWP has promised to take decisive action to reduce these figures.
DWP Statement on Fraud and Error
The DWP explained that measuring fraud and error helps understand levels, trends, and reasons behind incorrect payments. This supports decision-making to reduce fraud and ensure payment accuracy. The National Audit Office also considers these estimates when auditing DWP accounts annually. The estimates cover benefit systems in Great Britain, with reviews conducted in England, Wales, and Scotland.
Post-Pandemic Fraud Trends
The DWP previously warned that an increasing propensity for fraud in society since the pandemic has led to a permanent rise in dishonest claims. A DWP spokesman stated: “We are determined to tackle fraud and error in the system, and at just 3.2% the overall rate is at its lowest since the pandemic. Our new Fraud Act gives us tough new powers to go after cheats and claw back taxpayers’ money – including accessing new data from banks to help find incorrect payments.”
Recent Convictions
The spokesman added: “We’ve also secured a number of high-profile recent convictions of people committing PIP and Universal Credit fraud – proof our sustained efforts are working.”
