The Department for Work and Pensions (DWP) has launched a crackdown using the 'full force of the law' after its own staff stole more than £600,000 in benefits intended for unemployed, disabled, and pensioner claimants. The internal fraud, carried out by DWP employees and contract staff during the 2025-26 financial year, has sparked outrage among campaigners and taxpayer groups.
Details of the Fraud
According to DWP figures, the amount stolen through internal benefit fraud in 2025-26 was less than half of the £1.2 million stolen in the previous year, indicating that robust controls have reduced losses. However, former pensions minister Ros Altmann expressed shock that such theft continues. 'Clearly, the amount being stolen has fallen, but it is shocking that this kind of theft is still going on,' she told The i Paper. She added that it was 'diverting hard-earned taxpayer money away from people needing help from the DWP.'
Reactions from Campaigners and Taxpayer Groups
The TaxPayers' Alliance condemned the fraud, with campaigns director William Yarwood stating that the public would be 'appalled' that benefits money was stolen 'from inside the very department meant to protect it.' He said, 'Ministers must recover the money, sack anyone responsible and strengthen controls so the system protects taxpayers rather than being exploited by insiders.' Shabaaz Mohammed, a campaigner with Manchester Disabled People Against Cuts, called the level of staff fraud 'shocking.' He told The i Paper: 'It's not a small amount and it could be going to people who need it. It shows the focus has been on the wrong people. There's been so much rhetoric about benefit scroungers and the bloated welfare system – but there has been this fraud going on within their own department. The DWP should get its house in order.'
DWP Response and Action
The DWP, which employs approximately 85,000 full-time-equivalent staff, stated that it takes allegations of fraud 'extremely seriously' and has taken appropriate action. A spokesperson confirmed: 'Anybody caught abusing their position to fraudulently claim taxpayers’ money will be held to account with the full force of the law.' The department emphasized that its controls have significantly reduced internal fraud compared to the previous year, but acknowledged that any level of theft is unacceptable.
Broader Context and Impact
The revelations come amid ongoing government efforts to crack down on welfare fraud and abuse. Critics argue that the focus on external benefit claimants has been disproportionate, while internal fraud within the DWP itself has been under-scrutinized. The stolen funds, intended for some of the most vulnerable members of society, highlight systemic weaknesses that campaigners say must be addressed urgently. The DWP's commitment to using the full force of the law against perpetrators signals a tougher stance, but pressure remains on ministers to ensure robust oversight and recovery of stolen money.
