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New DWP plan to tackle benefit fraud to focus on these five areas of Universal Credit claims
20.05.2022 - 12:55 / dailyrecord.co.uk
The Department for Work and Pensions (DWP) has shared details of a new £613 million plan to stop an estimated £4 billion being lost in fraud and error over the next five years.
The ‘Fighting Fraud in the Welfare System’ plan outlines how the DWP will create a new 2,000-strong team dedicated to reviewing more than two million existing Universal Credit claims.
This new team will review the entitlements and circumstances of Universal Credit claims that the DWP deems are at risk of being incorrect, including suspicious cases which entered the system during the height of the pandemic - this review is expected to stop around £2 billion of losses due to fraud and error over the next five years.
The DWP plan reports that last year, there was an estimated £6.3 billion of welfare fraud, up from £2.8 billion from the year before.
Coupled with £2.1 billion of error, the combined loss as a result of fraud and error was £8.4 billion or 3.9% of benefit expenditure.
The DWP has highlighted five key areas that make up most of that loss.
Earnings is the highest loss area for fraud and error, totalling £1.9 billion in 2020/21 in Universal Credit.
This is in part a result of the significant increase in the proportion of self-employed claimants from 5.4% of the Universal Credit caseload in February 2020 to 15.4% in July 2020.
The DWP said: “Greater use of data will help us corroborate income and allow us to make the right payment.
“We are already doing this for individuals who pay tax through the PAYE system, for whom we get a Real Time Information feed from HMRC to assess their earnings, rather than relying on self-reporting.”
Equating to a £0.9 billion loss in 2020/21 in Universal Credit, this can occur at the start of a claim when claimants
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