Latest news with #DepartmentOfWorkAndPensions
Daily Mail
6 days ago
- Business
- Daily Mail
Nearly £1 in every £10 of Universal Credit was wrongly paid last year with an eye-watering £5.2bn lost to fraud as Labour faces demands to get a grip
Nearly £1 in every £10 spent on Universal Credit last year was wrongly paid, official figures have revealed. The Department of Work and Pensions admitted £6.35billion was overpaid in Universal Credit in 2024-25. This was almost 10 per cent of the £65.3billion of total expenditure on Universal Credit in the last financial year. The amount that was wrongly paid in Universal Credit included an eye-watering £5.2billion in overpayments due to fraud. The main cause of fraud overpayments was an under-declaration of income by claimants of Universal Credit, which is paid to those on low incomes or who are out of work. The second largest source of fraud was claimants failing to declare living with a partner, while the third largest fraud reason was an under-declaration of financial assets. The Labour Government is being urged to 'crack down ruthlessly' on those who defraud taxpayers, with the level of fraud and error in the benefits system branded 'a national scandal'. The Department of Work and Pensions admitted £6.35billion was overpaid in Universal Credit in 2024-25. This was almost 10 per cent of the £65.3billion of total expenditure Shimeon Lee, policy analyst of the TaxPayers' Alliance, said: 'The level of fraud and error in the benefits system, particularly Universal Credit, is a national scandal, yet time and again DWP fails to address it. 'The benefits bill would be soaring out of control even if every penny went to the right recipient. 'It is more vital than ever that the Government is cracking down ruthlessly on those that defraud taxpayers while ensuring internal processes are rigorous enough to minimise mistaken payments.' Sir Keir Starmer recently saw his attempt to cut Britain's ballooning benefits bill derailed by a major rebellion among Labour MPs. The Prime Minister was forced to scrap most of his planned welfare changes in the face of a huge Labour revolt. He ditched Labour's proposed restrictions to Personal Independence Payment (PIP), which is the main disability payment in England, until after a review. A humilated Sir Keir was instead left to push through slimmed-down legislation in the House of Commons, now only referred to as the Universal Credit Bill. As part of the Bill, the basic Universal Credit standard allowance will rise at least in line with inflation until 2029-30. But the health part of the benefit will be reduced for new claimants after April 2026, unless they had a severe or terminal condition, and the rate will be frozen until 2030. The Covid pandemic saw a huge increase in fraud and error in benefit payments, as the then Tory government scrambled to protect Britons' incomes as they shut down large parts of the UK economy during lockdown. The latest statistics published by the Department for Work and Pensions showed a total of £9.5billion was overpaid in benefits in 2024-25, at a rate of 3.3 per cent. This compared with £9.7billion and 3.6 per cent in 2023-24. Meanwhile, £1.2billion was underpaid in benefits in 2024-25 at a rate of 0.4 per cent, which was unchanged from 2023-24. In 2024-25, the Universal Credit overpayment rate decreased to 9.7 per cent (£6.35billion) from 12.4 per cent (£6.41billion) in 2023-24. Overpayments due to fraud decreased to 8 per cent (£5.2billion) in 2024-25, from 10.8 per cent (£5.62billion) in 2023-24. The Department for Work and Pensions said these decreasse were 'statistically significant'. Fraud due to under-declaration of income was measured at 2.2 per cent in 2024-5, compared with 2.6 per cent in 2023-24. Fraud due to claimants failing to declare living with a partner was measured at 1.7 per cent in 2024-5, compared with 1.5 per cent in 2023-24. And fraud due to under-declaration of financial assets was measured at 1.3 per cent in 2024-5, compared with 1.9 per cent in 2023-24. Some £610million (0.9 per cent) of Universal Credit was wrongly paid in 2024-25 due to claimant error, compared with £410million (0.8 per cent) in 2023-24. And £540million (0.8 per cent) of Universal Credit was wrongly paid in 2024-25 due to official error, compared with £390million (0.7 per cent) in 2023-24. The proportion of claims overpaid was 21 in 100 claims in 2024-25, compared with 23 in 100 claims in 2023-24. The proportion of claims underpaid increased to 2 in 100 claims in 2024-25, from 1 in 100 claims in 2023-24.
Telegraph
01-07-2025
- Health
- Telegraph
Claimants handed disability benefits for acne and writer's cramp
Benefit claimants with conditions including acne and writer's cramp have been handed additional disability payments from the Government, official figures show. A new analysis of data from the Department of Work and Pensions (DWP) has found a sharp rise in a number of conditions suffered by people claiming extra money because of mobility problems. This included 13 people who received enhanced personal independence payment (Pip) for 'factitious disorders,' which are conditions when a patient 'pretends to be ill or deliberately produces symptoms of illness', according to the NHS definition. Other problems reported by claimants receiving 'enhanced' mobility payments of £77 a week included five people with acne, six with writer's cramp – a movement disorder that makes it hard to use the hands – and 31 with food intolerances. It came as the Government launched a review into Pip, after a rebellion of more than 120 Labour MPs against Sir Keir Starmer's plan to reduce the number of people who can claim it. Sir Stephen Timms, a welfare minister, will now run a consultation with disabled people, charities and other stakeholders to determine how the rules should be changed. The Labour government argues that it must try to reduce the cost of welfare in Britain, which has seen a sharp rise since the Covid-pandemic mostly through more claims for mental illness. The reforms proposed by Sir Keir would have cut payments for people on universal credit who said they had a 'limited capacity' to work, to encourage them to employment. He also proposed cutting Pip, which is paid to claimants regardless of whether they work, and consists of a 'daily living' and 'mobility' allowance. But after the rebellion, ministers have scaled back the reforms and will now only save around £2.5 billion a year by the end of the decade, compared to £5 billion initially projected. The climbdown means that all existing Pip claimants will continue to receive their current benefits, and the stricter rules will only apply to new claimants from November 2026. An impact assessment of the updated plans, published on Monday, found that 150,000 people would still be pushed into relative poverty by the new rules, compared to 250,000 under the earlier reforms. Ministers argue that fewer people will actually be in poverty because the impact assessment did not include the effect of a £1 billion-a-year drive to get people back into work. Some Labour MPs said they still planned to vote against the changes on Tuesday, but the Government is expected to get legislation through the House of Commons with the support of some former rebels. The spiralling cost of disability benefits was laid bare by a new analysis of the data by the TaxPayers' Alliance campaign group, which highlighted examples of claims that warranted the £77 weekly payment under DWP rules. The total number of claimants receiving enhanced Pip in April 2025 was 1.75 million, up from 734,136 in January 2019. The largest increases, in line with other benefits data, were granted to people with mental health issues including autism, anxiety and depression. But other rises involved people with factitious disorders, which increased to 13 claimants from 11. The NHS says that Munchausen syndrome, one factitious disorder, happens when a patient's 'main intention is to assume the 'sick role' so that people care for them and they are the centre of attention'. The health service's website adds: 'Some people with Munchausen syndrome may spend years travelling from hospital to hospital faking a wide range of illnesses. 'When it's discovered they're lying, they may suddenly leave hospital and move to another area.' John O'Connell, chief executive of the TaxPayers' Alliance, said: 'While England is a sicker country than it was before the pandemic, the size of the increases for many of these conditions surely cannot be believed by even the most gullible of MPs. 'Britain is in desperate need of a politician who has the courage to tackle this system head on to ensure that taxpayers' money is being protected while those who genuinely need help receive it.' The Labour about-turn on benefits reform means that far fewer people are expected to be denied payments than under the Government's original plans. In the Autumn Statement, the DWP projected that the Pip caseload would continue to rise, jumping from 3.7 million to 5.1 by 2029/30. The expected annual spend has been forecast to increase by £18 billion by the end of the decade without reform. The cuts first suggested by Labour would, according to updated figures in the Spring Statement, see the Pip caseload rise by 423,000 less than that initial estimate, although it would still be about a million more people higher than current levels. Alongside other reforms relating to universal credit, the IFS estimated total savings of £4.6 billion at the time, but roughly £3 billion of that saving is now set to be lost, taking total savings to less than 0.5 per cent of the welfare budget. The number of people claiming Pip has risen by 55 per cent since January 2020, with one in seven (13.7 per cent) of people now successfully claiming it. The largest increases are among people with mental health issues, and psychiatric disorders are now responsible for 38 per cent of claims. Some commentators have suggested that the increase in successful claims has been driven by online or over-the-phone Pip assessments, which previously happened mostly in person. Prospective claimants can consult websites that advise which keywords to use to score the maximum number of points on the assessment. Almost 6 per cent of young adults are claiming for mental health issues, up from less than 2 per cent in the 2000s, Telegraph analysis shows. In some parts of the country, as many as one in six adults are on disability payments. In Liverpool, Walton, the proportion has increased from 11 per cent to 17.3 per cent. This is compared to just 2.8 per cent in Mid Buckinghamshire.
BBC News
25-06-2025
- Business
- BBC News
Union condemns plans to close Lincoln DWP centre
A union has described plans to close a Department of Work and Pensions (DWP) centre in Lincoln as a "callous decision".The Public and Commercial Services (PCS) union said around 128 people risk losing their jobs if the centre in Lincoln City Hall was Lincoln Jobcentre is not affected and will remain open.A DWP spokesperson said that affected staff would be "fully supported and redeployed" in other government departments. The PCS claimed any redeployment opportunities would be "40 miles away and an hour travel by public transport"."Lincoln also suffers from a depressed labour market which means there will be limited job opportunities outside of DWP which is a significant large employer in the community, " the PCS added."We are urging the DWP to change their strategy and stop putting jobs unnecessarily at risk."The union said it was organising meetings for affected members and would lobby local MPs about the a statement the DWP said there would be "no impact on the Jobcentre or Health Assessment Centre".It added: "This move only impacts Service and Support Centre staff who do not see customers face-to-face."All impacted staff will be fully supported and redeployed within the Department, or other government departments as a priority."We are transitioning from small numbers of colleagues working in multiple sites, to fewer, larger more economically viable sites."Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
The Independent
22-05-2025
- Business
- The Independent
Universal Credit payment boost to land in bank accounts this week
People on Universal Credit could see an early payment from the Department of Work and Pensions this week. Benefit payments will be going out as normal in May for the most part, but there are some exceptions due to the Bank Holidays. That means those that were due to get their benefit on 26 May, will get it on 23 May. This applies to a range of benefits, including the state pension, child benefit, PIP, and Universal Credit. Not everyone will be paid early, only those whose usual payment date falls on the bank holiday Monday. The full list of benefits that may be paid early are: Universal Credit State pension Pension credit Child benefit Disability living allowance Personal independence payment (PIP) Attendance allowance Carer's allowance Employment support allowance Income support Jobseeker's allowance Payments that were due on 26 May will now arrive this week on Friday 23 May, rather than after the long weekend, providing claimants with a much-needed financial boost right before the holiday. For more information on how and when state benefits are paid, visit the government's website. Changes to benefits In April, all benefits were uprated by 1.7 per cent, matching the September 2024 inflation figure. The increase will apply to all working-age benefits, including universal credit, PIP, DLA, attendance allowance, carer's allowance, ESA and more. Things will change slightly for Universal Credit claimants next year following Labour's welfare announcements. Everyone receiving the benefit's standard allowance will see a one-off above inflation rise by £7 a week from April 2026, taking it from £91 to £98. However, the rate of the additional Universal Credit health element will be frozen from 2026 at £97 until 2029/30 (although those in this group will receive the increased standard allowance). Additionally, any new claimants for the health element after April 2026 will receive a massively reduced rate of £50 a week – almost £2,500 less than the current level. This means it is a good idea for anyone who thinks they might be eligible to apply as soon as they can.
