Benefit claimants may often feel as though they are under constant scrutiny from the Department for Work and Pensions (DWP), but it’s crucial to understand what the department can actually see and how to identify if you’re being investigated. The DWP’s own figures suggest that millions of pounds are lost to benefit fraud each year, leading to eligibility crackdowns that put pressure on some individuals to prove their entitlement to payments.
For the financial year ending 2024, DWP figures show that 3.7% (£9.7 billion) of total benefit expenditure was overpaid due to fraud and error. In a bid to tackle this, the Fraud, Error and Debt Bill, introduced by the Labour government, will give investigators new powers including requiring banks and financial institutions to share data that may indicate potential benefit overpayments – including highlighting savings.
However, until this law comes into effect, the DWP’s surveillance capacity is limited, especially when a claimant isn’t actively being investigated. If suspicions of benefit fraud arise, claimants will typically be notified relatively soon after these suspicions are reported, which is usually what triggers an investigation.
At times, the department might carry out a sporadic review, though such instances are rare. Claimants can be approached by either the DWP, HMRC, Defence Business Services or their local council based on the nature of the benefits in question and the gravity of suspected infractions.
During investigations, it’s possible for your payments to be briefly suspended; however, a letter should be forthcoming to explain this if it affects you, remember. According to Citizen’s Advice, those finding themselves in monetary difficulty while under scrutiny should consult an adviser to learn about available financial support options, reports the Express.
Individuals suspected of committing benefit fraud should be prepared for a possible encounter with a Fraud Investigations Officer or an “interview under caution”—a process that can be utilised in legal proceedings designed to collect pertinent information. Yet not every disruption or inquiry into benefits necessarily indicates an ongoing investigation, as Citizen’s Advice clarifies, pointing out the DWP regularly performs checks to confirm the accuracy of benefits given.
JD Solicitors’ specialist lawyers note that these inquiries generally last a few months, but more intricate situations could endure much longer, even years, whereas some cases are swiftly concluded within weeks.
The Department for Work and Pensions (DWP) is looking to bolster its monitoring capabilities, with plans to demand more cooperation from financial institutions regarding benefit claimants. This isn’t about directly accessing account details, but rather ensuring the accuracy of benefits awarded.
If approved, the DWP could instruct banks to provide necessary information. Claimants may also be asked to disclose any lifestyle changes that could affect their benefits, providing evidence such as a doctor’s letter or household bills.
Universal Credit claimants might be required to submit copies of passports, tenancy agreements, or even photos taken outside their homes as part of an investigation. For further details on what happens if someone is suspected of benefit fraud, click here.