The Department for Work and Pensions (DWP) has shared how all UK taxpayers were swindled last year. Minister for Transformation Andrew Western has made it clear that the Government is targeting “big businesses, covid fraudsters, organised criminal gangs seeking to defraud the system, [and] individuals who are knowingly cheating their benefits”.
He further stated: “It is not acceptable, we have a major problem and we are taking the powers needed to act.” This statement follows reports that “welfare fraudsters cheated the taxpayer out of £7 billion last year” – or roughly £217 per taxpaying individual.
On Thursday, the DWP provided an update stating that MP Western was explaining “why the measures being introduced in the Fraud, Error and Recovery Bill are necessary to help the Government tackle these unacceptable losses”. Previously, the DWP announced that the new Bill “introduces measures to be tough on criminals and fairer to taxpayers”, with expectations to save the department £1.5bn over the forthcoming five years.
The Bill is also part of broader government efforts aiming to recoup a total of £8.6bn over 5 years, marking the largest welfare fraud and error budget package in recent times, all under the Plan for Change initiative.
Fraudsters caught could face driving bans of up to two years, the DWP has announced. The department is also set to receive powers to request search warrants, enabling them to search properties and seize items like smartphones and computers for evidence.
Work and Pensions Secretary Liz Kendall commented: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money. This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence.”
“Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely. People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”