13-05-2025
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."
