Latest news with #ErrorandRecovery)Bill
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.'
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'.
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.
Daily Mirror
09-05-2025
- Business
- Daily Mirror
DWP bank account 'monitoring' start date to combat benefit fraud
The Department for Work and Pensions (DWP) has confirmed when the eligibility verification measure for the Public Authorities (Fraud, Error and Recovery) Bill will begin The UK Government is vowing to introduce 'the biggest fraud crackdown in a generation' in a bid to save large sums slipping fraudulently out of the welfare system. The Department for Work and Pensions (DWP) says the Public Authorities (Fraud, Error and Recovery) Bill could save taxpayers around £1.5 billion over the span of five years. They are planning to slap persistent benefit cheats with driving bans of up to two years if they fail repeatedly to pay back money they owe, and could even take money directly from the bank accounts of fraudsters. On top of that, a new scheme called Eligibility Verification is being introduced, letting third parties like banks alert the DWP to dodgy benefit claims. The DWP has issued an 11 in-depth factsheets on how the measures will be brought into play. The government intends to implement the new plans by 2026, reports the Daily Record. The papers look at the safeguards and other measures designed to guarantee the "appropriate, proportionate, and effective use of the powers". The website says: "The Government will begin implementing the Bill measures from 2026. For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. "DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance." The DWP is ramping up its verification process for benefit claims. Officials will be able to get more information from third-party organisations like airlines in a bid to ensure no one is bending the rules by claiming benefits from overseas. Eligibility verification measure The DWP says it won't have direct access to the bank accounts of millions on means-tested benefits such as Universal Credit, Pension Credit, and Employment and Support Allowance. Instead, the DWP says it will team up with banks to identify claimants who might be flouting the eligibility rules for means-tested benefits - like earning over the £16,000 cap for Universal Credit - and use this information to probe potential overpayments or fraud. The law aims to strictly define what data banks and other financial institutions can share with the DWP, with officials saying it explicitly rules out transaction details so that the DWP can't track how benefit recipients spend their money. Furthermore, the factsheet says banks and financial institutions could face penalties if they overshare information, such as transaction data. Additionally, the document notes: "Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence." New DWP measures to tackle fraud The forthcoming Bill is designed to guarantee that taxpayer money is put to the best possible use: New requirements for banks and building societies to flag where there is an indication there may be a breach of eligibility rules for benefits in a bid to prevent debts building up. All the powers will, the DWP says, include strong safeguards to ensure they are only used appropriately and proportionately - including new inspection and reporting mechanisms. Allowing DWP to recover debts from people no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. New powers of search and seizure - so DWP can control investigations into criminal gangs defrauding the taxpayer. DWP will, they say, have a clearly defined scope and clear limitations for the use of all the powers it is introducing, and staff will be trained to the highest possible standards. DWP officials say the provisions in this Bill will also empower the Public Sector Fraud Authority to: Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations. Better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers. Reduce fraud against the public sector by using its expertise to take action on behalf of other departments against those who attack the public sector. Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud. Improve the government's ability to recover public money, through new debt recovery and enforcement powers. Improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations - building on lessons learned during COVID-19.
