The Department for Work and Pensions (DWP) has issued a new statement after vowing to combat fraud and error within the benefits system. This includes the recovery of debts incurred through Personal Independent Payments (PIP).
Conservative MP Sir John Hayes posed a question to the DWP regarding their strategy to “tackle people fraudulently claiming PIP”. In a written reply, DWP Minister Andrew Western outlined new measures being implemented to “prevent fraud entering the system based on the types of cases and trends we have seen”. This includes “introducing more rigorous checks for customers changing personal details, including bank accounts”.
Mr Western stated: “DWP is committed to tackling fraud and error in the benefits system and to the recovery of debts, including those generated by Personal Independent Payments. Working closely with counter fraud experts, the DWP has introduced measures to prevent fraud entering the system based on the types of cases and trends we have seen.”
New DWP measures to tackle benefit fraud
These include:
- Strengthening the Identity and Verification Process to prevent fraudulent cases entering the system
- Introducing more rigorous checks for customers changing personal details, including bank accounts
- Delivering awareness sessions for Case Managers and Healthcare Professionals, reinforcing action to take when suspicious cases are identified – for example, fake documents
He further elaborated on the DWP’s efforts to combat benefit fraud, which include investing in counter fraud professionals and enhancing data analytical capabilities. He also mentioned the forthcoming Fraud, Error and Debt Bill, which will introduce new measures to tackle fraud within the system.
He concluded: “Details on the measures the Government will be legislating will be presented to Parliament in due course.”, reports the Daily Record.
The Department for Work and Pensions (DWP) provides benefits to over 23 million individuals across Great Britain, including 3.6 million on Personal Independence Payment (PIP). The most recent DWP report indicates that £90 million was lost due to fraud and error in the PIP system in 2023/24.
Fraud and error within the welfare system currently cost taxpayers nearly £10 billion annually, and since the pandemic, a total of £35 billion has been wrongly paid to those not entitled to it. It’s crucial to note that this figure includes criminal gangs, not just benefit claimants.
This guidance on GOV.UK explains that this relates to claims where all three of the following conditions apply:
- the conditions for receipt of benefit, or the rate of benefit in payment, are not met
- the claimant can reasonably be expected to be aware of the effect on their entitlement
- benefit payment stops or reduces as a result of a review of the claim.
He further elaborated on the DWP’s efforts to combat benefit fraud, which include investing in counter fraud professionals and enhancing data analytical capabilities. He also mentioned the forthcoming Fraud, Error and Debt Bill, which will introduce new measures to tackle fraud within the system.
He concluded: “Details on the measures the Government will be legislating will be presented to Parliament in due course,” reports the Daily Record. The Department for Work and Pensions (DWP) provides benefits to over 23 million individuals across Great Britain, including 3.6 million on Personal Independence Payment (PIP). The most recent DWP report indicates that £90 million was lost due to fraud and error in the PIP system in 2023/24.
Fraud and error within the welfare system currently cost taxpayers nearly £10 billion annually, and since the pandemic, a total of £35 billion has been wrongly paid to those not entitled to it. It’s crucial to note that this figure includes criminal gangs, not just benefit claimants.
This guidance on GOV.UK explains that this relates to claims where all three of the following conditions apply:
- the conditions for receipt of benefit, or the rate of benefit in payment, are not met
- the claimant can reasonably be expected to be aware of the effect on their entitlement
- benefit payment stops or reduces as a result of a review of the claim.
Claimant error refers to overpayments where claimants have provided inaccurate or incomplete information, or failed to report a change in their circumstances leading to an overpayment, but there is no evidence of fraudulent intent on the claimant’s part.
Official error occurs when benefits have been incorrectly paid due to a failure to act, a delay, or a mistaken assessment by the Department, a local authority, or His Majesty’s Revenue and Customs, to which no one outside of that department has materially contributed, regardless of whether the business unit has processed the information.
In a December statement, Mr Western elaborated on the provisions of the anticipated Fraud, Error and Debt Bill, ensuring that it “will not give DWP access to any bank accounts, nor any information on how claimants spend their money”. He clarified that while banks and financial firms will be required to provide “limited information”, it is strictly for the purpose of validating benefit claims and detecting discrepancies with the eligibility criteria.
The DWP minister said: “As set out by the National Audit Office, access to data is key to prevention and detection of incorrect payments. The Eligibility Verification Measure (EVM) in the proposed Fraud, Error and Debt Bill will not give DWP access to any bank accounts, nor any information on how claimants spend their money.”
Detailing the process further, he said: “It will require banks and financial institutions to share limited information with the DWP to help verify benefit eligibility by flagging possible conflicts with eligibility rules – for example the £16,000 capital limit in Universal Credit. The information gathered will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity.”
Additionally, he noted: “The legislation will set out key safeguards, including reporting mechanisms and independent oversight. No benefit entitlement decision will be made solely because of the data obtained under EVM and a final decision on benefit entitlement will always involve a human agent. If a claimant wishes to challenge or appeal a benefit decision, they can do so following DWP’s appeals processes.”