Latest news with #AndrewWestern
Daily Record
6 days ago
- Business
- Daily Record
DWP measures to stop people fraudulently claiming monthly PIP of up to £749
DWP said £330 million was lost to fraud and error within the PIP system last year. The Department for Work and Pensions (DWP) recently confirmed it is 'committed' to tackling fraud and error within the benefits system, including recovering debts generated by Personal Independent Payments (PIP). Conservative MP Sir John Hayes asked DWP what steps it is taking to 'tackle people fraudulently claiming PIP'. In a written response, DWP Minister Andrew Western, explained new measures being introduced 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 said: ' 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 The Minister continued: 'DWP is delivering against key counter fraud activity, including investing in counter fraud professionals and building data analytical capabilities. The new Fraud, Error and Debt Bill will bring forward new measures to tackle fraud in the system. 'Details on the measures the Government will be legislating will be presented to Parliament in due course.' The DWP pays benefits to nearly 24 million people across Great Britain, including 3.7m on PIP. The latest DWP report shows £330m was lost to fraud and error in the PIP system last year, up from £90m in 2023/24. Fraud and error in the welfare system cost the taxpayer £9.5bn in overpayments last year, compared to £9.7bn in 2023/24. Fraud This guidance on 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 These are overpayments where claimants have provided inaccurate or incomplete information, or failed to report a change in their circumstances which has led to an overpayment, but there is no evidence of fraudulent intent on the claimant's part. Official error This is where benefits have been paid incorrectly 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. Last year, Mr Western clarified that 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'adding that banks and financial institutions will share 'limited information' with the Department to 'help verify benefit eligibility by flagging possible conflicts with eligibility rules'. 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. '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.' He added: '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.'
Daily Record
23-05-2025
- Business
- Daily Record
Nearly 6,000 DWP staff reviewing new and existing Universal Credit claims for ‘incorrect payments'
DWP has blocked £1 billion incorrect payments in a drive to protect people from falling into debt. More than £1 billion in incorrect Universal Credit payments have been blocked by the Department for Work and Pensions (DWP) in a drive to stop people falling into financial difficulties. The milestone was reached after a programme to review payments was ramped up by the Labour Government last summer, with more than one million cases now looked at. Overpayments can ultimately lead to financial difficulties for claimants by causing them to fall into debt. The 'Targeted Case Review' was introduced in 2022 to detect incorrect payments, with around 25,000 claims reviewed in the first year. Since July 2024, DWP has nearly doubled the number of people working in its Universal Credit Targeted Case Review team to 6,000. The Department said this significant increase in staff has boosted the number of existing claims reviewed to over one million, saving £1 billion in incorrect payments by detecting historic errors and preventing future overpayments that can result in debts accruing. The number of claim reviews will continue to ramp up now the department has reached its staff target, with nearly 6,000 staff to review claims with forecasted savings of £13.6 billion by 2030. Minister for Transformation, Andrew Western, said: 'This target could not have been reached without this significant boost to staffing numbers - meaning we now have forecasted savings of £13.6 billion by 2030. 'This is a vital programme not only ensuring overpayments are corrected but also makes certain people who are being underpaid receive the money they are entitled to. 'We will not tolerate fraud, error or waste and are committed to safeguard taxpayers' money so it can be invested in the public services we all deserve.' What is a Targeted Case Review? The 'Targeted Case Review' team reviews payments to prevent customers falling into or accumulating further debt, identify unreported changes in circumstances, correct claims retrospectively, and refer suspected cases of fraud for investigation. Reviews verify claimants' eligibility for the benefits they receive by sending a notification to their online account to request proof of identity and other documentation. In the Autumn Budget, the Labour Government committed to the continuation of Targeted Case Review activity for a further two years, with learnings used to prevent error from entering the welfare system in the first place. The aim is to help provide a fair, high-quality service that ensures customers receive their full entitlement and avoid unnecessary debt. These major milestones come as the UK Government outlines further plans to strengthen its ability to reduce fraud and error through the Public Authorities (Fraud, Error and Recovery) Bill. DWP said: 'This is alongside its work to support people into work and become less reliant on the benefit system to drive productivity and unlock growth as part of its Plan for Change.'
Yahoo
15-05-2025
- Business
- Yahoo
‘Staggering' number of DWP overpayments slammed by minister
Over £9 billion in benefits are estimated to have been overpaid over the past year due to fraud and error, a figure one government minister has called "staggering." Official statistics reveal the total overpaid benefit expenditure reached £9.5 billion in the year ending March, with fraud accounting for the majority. Meanwhile, an estimated £1.2 billion was underpaid during the same period, according to Department for Work and Pensions (DWP) figures. Fraudulent claims contributed £6.5 billion to the total overpayments, a decrease from £7.3 billion the previous year. However, overpayments due to claimant error rose to £1.9 billion, up from £1.6 billion, while official errors also increased, reaching £1 billion from £0.8 billion. Overpayments specifically related to Universal Credit saw a slight decrease, falling to £6.35 billion from £6.41 billion. DWP said people under-declaring their earnings remained the main cause of fraud overpayments, followed by benefits claimants failing to declare living with a partner, and thirdly people under-declaring their financial assets or capital. The department said it was able to recover some £1.1 billion of overpayments in the past year – £0.4 billion in housing benefit and the same amount in universal credit. While the overall figure fell from £9.7 billion in the previous year, it was still described as 'staggering' by minister Andrew Western. In a written statement published alongside the figures on Thursday, he said: 'This Government made a manifesto commitment that it will safeguard taxpayers' money and not tolerate fraud or waste anywhere in public services. 'With welfare benefits paid to around 24 million people, the welfare system is a deliberate target for both organised crime groups and opportunistic individuals and it is vital that the Government continues to robustly tackle fraud to ensure support goes to those who need it most. 'We are taking further steps to minimise error, ensuring the right people are paid the right amount at the right time.' The figures came as the Public Authorities (Fraud, Error and Recovery) Bill moved to the House of Lords for its second reading on Thursday. Its proposed reforms have been billed as delivering the 'biggest ever crackdown on fraud against the public purse'. The Bill seeks to curb multibillion-pound benefit fraud and includes allowing the DWP to recover money directly from fraudsters' bank accounts. It would also allow the DWP to have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay them back. In the Commons, a group of Labour MPs rebelled to support an amendment designed to curb Government powers to verify a person's benefit eligibility and the Liberal Democrats warned the Bill could result in 'Orwellian levels of mass surveillance of those who have means-tested benefits'. The DWP figures also show that fraudulent claims for Personal Independence Payments (PIP) 'remained at 1 in 100 claims' in 2025, which was the same as in 2024. The health-related benefit is at the heart of Labour's recently announced welfare reforms, making up £4.1 billion of the £6.4 billion savings. Disability advocate and founder of Purpl, Georgina Colman, said the statistics 'show how misdirected the cuts are.' 'It's clear that the majority of people claiming benefits like PIP are in need, so it's frustrating to see the harshness of the welfare cuts. PIP and other benefits are for the most vulnerable in society and taking away these lifelines could be counterproductive and leave people worse off.'
The Independent
15-05-2025
- Business
- The Independent
‘Staggering' number of DWP overpayments slammed by minister
Over £9 billion in benefits are estimated to have been overpaid over the past year due to fraud and error, a figure one government minister has called "staggering." Official statistics reveal the total overpaid benefit expenditure reached £9.5 billion in the year ending March, with fraud accounting for the majority. Meanwhile, an estimated £1.2 billion was underpaid during the same period, according to Department for Work and Pensions (DWP) figures. Fraudulent claims contributed £6.5 billion to the total overpayments, a decrease from £7.3 billion the previous year. However, overpayments due to claimant error rose to £1.9 billion, up from £1.6 billion, while official errors also increased, reaching £1 billion from £0.8 billion. Overpayments specifically related to Universal Credit saw a slight decrease, falling to £6.35 billion from £6.41 billion. DWP said people under-declaring their earnings remained the main cause of fraud overpayments, followed by benefits claimants failing to declare living with a partner, and thirdly people under-declaring their financial assets or capital. The department said it was able to recover some £1.1 billion of overpayments in the past year – £0.4 billion in housing benefit and the same amount in universal credit. While the overall figure fell from £9.7 billion in the previous year, it was still described as 'staggering' by minister Andrew Western. In a written statement published alongside the figures on Thursday, he said: 'This Government made a manifesto commitment that it will safeguard taxpayers' money and not tolerate fraud or waste anywhere in public services. 'With welfare benefits paid to around 24 million people, the welfare system is a deliberate target for both organised crime groups and opportunistic individuals and it is vital that the Government continues to robustly tackle fraud to ensure support goes to those who need it most. 'We are taking further steps to minimise error, ensuring the right people are paid the right amount at the right time.' The figures came as the Public Authorities (Fraud, Error and Recovery) Bill moved to the House of Lords for its second reading on Thursday. Its proposed reforms have been billed as delivering the 'biggest ever crackdown on fraud against the public purse'. The Bill seeks to curb multibillion-pound benefit fraud and includes allowing the DWP to recover money directly from fraudsters' bank accounts. It would also allow the DWP to have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay them back. In the Commons, a group of Labour MPs rebelled to support an amendment designed to curb Government powers to verify a person's benefit eligibility and the Liberal Democrats warned the Bill could result in 'Orwellian levels of mass surveillance of those who have means-tested benefits'. The DWP figures also show that fraudulent claims for Personal Independence Payments (PIP) 'remained at 1 in 100 claims' in 2025, which was the same as in 2024. The health-related benefit is at the heart of Labour's recently announced welfare reforms, making up £4.1 billion of the £6.4 billion savings. Disability advocate and founder of Purpl, Georgina Colman, said the statistics 'show how misdirected the cuts are.' 'It's clear that the majority of people claiming benefits like PIP are in need, so it's frustrating to see the harshness of the welfare cuts. PIP and other benefits are for the most vulnerable in society and taking away these lifelines could be counterproductive and leave people worse off.'
Daily Record
15-05-2025
- Business
- Daily Record
DWP says ‘staggering' level of benefit overpayments due to fraud and error in welfare system
Nearly £10 billion in benefit overpayments were issued over the last year. Reasons your Universal Credit may be cut by DWP Data revealing more than £9billion is estimated to have been overpaid in benefits because of fraud and error has been branded 'staggering' by a UK Government minister. The latest official statistics said the total rate of benefit expenditure overpaid in the year to the end of March was £9.5 billion - with fraud accounting for most of that sum. However, the new figures from the Department for Work and Pensions (DWP) also show that over the same period, an estimated £1.2billion was underpaid in benefits. Fraud accounted for £6.5 billion of the total overpayments figure in the year to March, down from £7.3billion a year earlier. Claimant error was up year-on-year, accounting for £1.9billion in the year to March, from £1.6billion the previous year, while overpayments because of official error also rose to £1billion from £0.8billion the previous year. Overpayment of Universal Credit fell slightly to £6.35billion, from £6.41billion in the previous year. DWP said people under-declaring their earnings remained the main cause of fraud overpayments, followed by benefits claimants failing to declare living with a partner, and thirdly people under-declaring their financial assets or capital. The Department said it was able to recover some £1.1billion of overpayments in the past year - £0.4billion in Housing Benefit and the same amount in Universal Credit. While the overall figure fell from £9.7billion in the previous year, it was still described as 'staggering' by minister Andrew Western. In a written statement published alongside the figures on Thursday, he said: 'This Government made a manifesto commitment that it will safeguard taxpayers' money and not tolerate fraud or waste anywhere in public services. 'With welfare benefits paid to around 24million people, the welfare system is a deliberate target for both organised crime groups and opportunistic individuals and it is vital that the Government continues to robustly tackle fraud to ensure support goes to those who need it most. 'We are taking further steps to minimise error, ensuring the right people are paid the right amount at the right time.' The figures came as the Public Authorities (Fraud, Error and Recovery) Bill moved to the House of Lords for its second reading on Thursday. Its proposed reforms have been billed as delivering the 'biggest ever crackdown on fraud against the public purse'. The Bill seeks to curb multibillion-pound benefit fraud and includes allowing the DWP to recover money directly from fraudsters' bank accounts. It would also allow the DWP to have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay them back. In the Commons, a group of Labour MPs rebelled to support an amendment designed to curb Government powers to verify a person's benefit eligibility. And the Liberal Democrats warned the Bill could result in 'Orwellian levels of mass surveillance of those who have means-tested benefits'.
