Latest news with #ErrorandDebtBill
Daily Record
2 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.'
Wales Online
6 days ago
- Business
- Wales Online
DWP confirms the amount in bank accounts that could set off checks
DWP confirms the amount in bank accounts that could set off checks The Department for Work and Pensions said it would start clawing back the benefit from anyone with between £6,000 and £16,000 in savings - and that bank account checks would be carried out Individuals with more than £6,000 in their bank accounts have been cautioned that checks will be conducted on their accounts if they are receiving Universal Credit. The Department for Work and Pensions (DWP) will begin withdrawing the benefit from those with savings between £6,000 and £16,000. To qualify for DWP benefits, claimants typically cannot have more than £16,000 in savings or investments. New checks will be implemented to prevent system abuse. Liz Kendall, Secretary of State for Work and Pensions, previously said: "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." Government rules for Universal Credit eligibility specify that claimants, whether single or living with a partner, must typically have no more than £16,000 in money, savings, and investments. If an individual has between £6,000 and £16,000, their Universal Credit payments will be reduced. For individuals with savings exceeding £6,000, their payments will be incrementally reduced. For every £250 held between £6,000 and £16,000, payments will be cut by £4.35. An additional £4.35 is deducted for any remaining sum that does not amount to a full £250. This approach is based on the Department for Work and Pensions' (DWP) assumption that each £250 in a person's bank account can generate a monthly income of £4.35. Therefore, if someone has £6,500 in savings, £6,000 will be disregarded, and the remaining £500 will be considered as providing a monthly income of £8.70. This sum is then subtracted from your monthly Universal Credit payment, according to Birmingham Live. For those receiving Job Seekers Allowance or income-related ESA, £1 per week will be deducted from their benefits for every £250 (or part thereof) in savings above £6,000. The same rule applies to income support and housing benefit recipients. These benefits are typically deposited into accounts fortnightly. Recently the DWP provided an update on its intention to scrutinise the bank accounts of benefits claimants. The Labour Party's Fraud, Error and Debt Bill is currently progressing through Parliament and is expected to be enacted later this year. One of these new and contentious powers will allow the DWP to examine the bank accounts of those suspected of having more funds than they declare and to recoup benefit debts. Another provision would enable the department to suspend driving licences. Article continues below The bill received its first reading in the House of Lords in May and an amendment to it was rejected.
Daily Mirror
13-05-2025
- Business
- Daily Mirror
DWP measures to prevent PIP benefit fraud of payments worth £750 a month
This year, the Labour government announced a major shake-up to the UK's main disability benefit, PIP, and shared further measures on how it would clamp down on fraud within the benefit system The Department for Work and Pensions (DWP) has shared some of the steps it is taking to tackle fraudulent claims of Personal Independence Payment (PIP). The DWP confirmed - under both the Tory and Labour governments - that it was "committed" to tackling fraud within the benefits system. This year, the Labour government announced a major shake-up to the UK's main disability benefit, PIP, and shared further measures on how it would clamp down on fraud within the benefit system. PIP is paid to people with long-term mental or physical health conditions or disabilities. PIP is not an out of work benefit, the aim of it is to help with the extra financial costs which come with medical conditions and disabilities. Unlike other benefits, you can also get PIP even if you're working, have savings or are getting most other benefits. In a previous written question, Conservative MP Sir John Hayes asked the benefti department what steps it was taking to 'tackle people fraudulently claiming PIP'. In response, Andrew Western, DWP minister and Labour MP for Stretford and Urmston, said: "DWP is committed to tackling fraud and error in the benefits system and to the recovery of debts, including those generated by PIP." Join Money Saving Club's specialist topics He also noted that the department was "working closely" with counter fraud experts to recover debts and had already introduced measures to "prevent fraud entering the system" based on the types of cases and trends it had seen. This included Strengthening the Identity and Verification Process to prevent fraudulent cases from 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 added: '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." Sign up to Mirror Money's newsletter for the latest advice and news From universal credit to furlough, employment rights, travel updates and emergency financial aid - we've got all of the big financial stories you need to know about right now. There are currently around 3.6 million people who claim PIP in the UK. According to figures from the DWP for the financial year ending 2024, PIP fraud stood at 0%, while Disability Living Allowance (DLA) fraud stood at 0.1%, which was rounded to £0million. PIP overpayments stood at 0.4%, which is the equivalent of £90million lost in a year. That is compared to 1.1% - or £200million - in the financial year ending 2023. According to the data, the majority of overpayments happened because of errors where the claimant did not report a change in their needs. Only one in 100 PIP claimants was overpaid. For DLA, the overpayment rate was 0.5% or £30million in the financial year ending 2024. Around 0.2% was due to claimant error, mainly because claimants failed to report that they were admitted to hospitals or care homes. The next DWP fraud and error report is due to be published later this month.
Wales Online
13-05-2025
- Business
- Wales Online
DWP steps to prevent people fraudulently claiming PIP payments
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info The Department for Work and Pensions has reaffirmed its vow to combat benefit fraud and error, including reclaiming debts from Personal Independent Payments. This statement was made in response to an inquiry by Conservative MP Sir John Hayes, who questioned what actions the DWP is taking to address individuals submitting fraudulent PIP claims. In a written response, DWP Minister Andrew Western detailed new initiatives being put in place to prevent fraudulent activity from entering the system based on observed patterns and case types. Read more: Nationwide warns over major shake-up Some of these steps include implementing more stringent checks when claimants modify personal details, such as bank accounts, as reported by the Daily Record. Western stated, "DWP is dedicated to tackling fraud and error within the benefits system and to recovering debts, including those from Personal Independent Payments. Working closely with counter-fraud specialists, DWP has introduced measures to prevent fraudulent activity based on observed cases and trends.", reports the Express. DWP introduces new measures to combat benefit fraud. The Minister further noted, "DWP is making progress in key counter-fraud activities, including investing in counter-fraud professionals and enhancing data analytical capabilities. The new Fraud, Error, and Debt Bill will introduce additional measures to tackle systemic fraud. "Details of the legislative measures will be presented to Parliament in due course." Minister Western outlined new measures being taken to "prevent fraud entering the system based on the types of cases and trends we have seen". These measures include "introducing more rigorous checks for customers changing personal details, including bank accounts", reports the Daily Record. 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. The Minister added: "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 Department for Work and Pensions (DWP) delivers benefits to over 23 million individuals across Great Britain, including 3.6 million on Personal Independence Payment (PIP). The latest DWP report discloses that £90 million was lost to fraud and error in the PIP system in 2023/24. Fraud and error within the welfare system currently burden taxpayers with nearly £10 billion each year. Since the onset of the pandemic, a staggering total of £35 billion has been erroneously paid to those not entitled to it. It's important to clarify that this figure also encompasses criminal gangs, not solely benefit claimants. The forthcoming DWP fraud and error report is due to be released later this month. As per guidance on fraud pertains to claims where all three of the following conditions are satisfied:. Claimant error refers to overpayments where claimants have supplied inaccurate or incomplete information, or neglected to report a change in their circumstances resulting in an overpayment, but there is no evidence of fraudulent intent on the claimant's part. Official error transpires when benefits have been wrongly paid due to a failure to act, a delay, or an incorrect assessment by the Department, a local authority, or His Majesty's Revenue and Customs, to which no one outside of that department has significantly contributed, irrespective of whether the business unit has processed the information. Last year, Mr Western clarified the scope of the soon-to-be-unveiled Fraud, Error and Debt Bill by emphasising: "will not give DWP access to any bank accounts, nor any information on how claimants spend their money" further explaining that "limited information" will be made available to banks for the Department for Work and Pensions (DWP) to bolster benefits eligibility checks and spotlight potential rule breaches. The Minister for the DWP was adamant: "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." Stressing what the bill seeks to accomplish, he elaborated: "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." To highlight the protective elements, he declared: "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."
Wales Online
10-05-2025
- Business
- Wales Online
DWP shares update on powers to check benefit claimant's bank accounts
DWP shares update on powers to check benefit claimant's bank accounts New legislation would allow the DWP to monitor the bank accounts of people claiming benefits and it's already passed in one of the final hurdles to becoming law The Department for Work and Pensions (DWP) has provided an update on its intention to scrutinise the bank accounts of benefits claimants. The Labour Party's Fraud, Error and Debt Bill is currently progressing through Parliament and is expected to be enacted later this year. The bill will grant the DWP new, far-reaching powers to tackle fraud within the social security system. One of these new and contentious powers will allow the DWP to examine the bank accounts of those suspected of having more funds than they declare and to recoup benefit debts. Another provision would enable the department to suspend driving licences. Both proposals were approved at the third reading of the Public Authorities (Fraud, Error and Recovery) Bill on Tuesday, April 29, bringing the government a step closer to officially introducing these measures. Under the proposed legislation, banks and other financial institutions will be required to cooperate with government requests to share data to detect benefit fraud. However, the government has assured that the DWP will not have direct access to individuals' bank accounts and will not disclose their personal information to third parties, reports the Mirror. The bill has now reached the House of Lords and has undergone its first reading. The second reading is scheduled for May 15. However, there is some discord within the Labour Party regarding these measures, with several members voting for amendments aimed at restricting the DWP's ability to inspect accounts. Article continues below The Liberal Democrats have warned that the Bill could result in "Orwellian levels of mass surveillance of those who have means-tested benefits." For money-saving tips, sign up to our Money newsletter here . In the Commons during the third reading, Work and Pensions Secretary Liz Kendall remarked: "Delivering our plan for change means ensuring every single pound of taxpayers' money is wisely spent and goes to those in genuine need. "That is what this legislation will help deliver, with the biggest ever crackdown on fraud against the public purse." Labour MP for Poole Neil Duncan-Jordan, in a parliamentary debate, advocated for his amendment which would restrict the government's power to scrutinise a claimant's financial records. His amendment stipulated that the government should only probe the accounts of individuals it "has reasonable grounds to suspect has committed, is committing or intends to commit" an offence. Addressing fellow MPs, he expressed: "The Bill rightly seeks to tackle organised crime and online fraud, but also worryingly ushers in dangerous new powers compelling banks to trawl through financial information." He continued: "It is the very poorest in our society which are going to be affected most by this legislation. So banks will be able to trawl for financial information even where there is no suspicion of wrongdoing. That's the key point in this debate." Labour's Work and Pensions Minister Andrew Western has contested arguments regarding an amendment, insisting it would sabotage the new authority designed to authenticate individuals' benefit eligibility. He said: "We do require this power because it will enable better data sharing between the private and public sector to help check claimants are meeting the criteria for their benefits and to detect incorrect payments at an earlier stage before any suspicion of wrongdoing has arisen." Adding clarity, he continued: "It is not a power to be used to respond to suspected fraud. Information will not be shared with the DWP under the assumption that a claimant is guilty of any wrongdoing. The DWP must look into why the account has been flagged by the bank and ascertain whether an incorrect payment has been made." Article continues below He emphasised the DWP's commitment to further investigations to confirm whether benefits had been wrongly distributed, pointing to fraud or error as possible causes. Despite support from 10 Labour MPs for Duncan-Jordan's amendment, it was ultimately defeated in a vote—with a sizeable majority of 153, where 238 members voted against and only 85 supported it.
