DWP powers to stop people fraudulently claiming PIP | Personal Finance | Finance

The Department for Work and Pensions (DWP) has recently affirmed its dedication to combating fraud and error within the benefits system, including the recovery of debts incurred through Personal Independent Payments (PIP).

Conservative MP Sir John Hayes queried the DWP about the measures being taken to “tackle people fraudulently claiming PIP”.

In a written reply, DWP Minister Andrew Western outlined new strategies being implemented to “prevent fraud entering the system based on the types of cases and trends we have seen”.

This encompasses “introducing more rigorous checks for customers changing personal details, including bank accounts”.

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 Combat 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 further 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 DWP provides benefits to over 23 million individuals across Great Britain, including 3.6m on PIP. The most recent DWP report reveals that £90 million was lost to fraud and error in the PIP system in 2023/24 , reports the Daily Record.

Fraud and error in the welfare system currently cost taxpayers nearly £10 billion annually, and since the pandemic, a total of £35bn has been wrongly paid to those not entitled to the money. However, it’s crucial to note that this figure also includes criminal gangs, not just benefit claimants. The next DWP fraud and error report is set to be published in May.

Fraud

GOV.UK provides guidance explaining that fraud 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. However, there is no evidence of fraudulent intent on the claimant’s part.

Official error

This refers to instances 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. This occurs regardless of whether anyone outside of that department has materially contributed, and irrespective of whether the business unit has processed the information.

Last year, Mr Western made it clear 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 will only share “limited information” with the Department to assist in verifying benefit eligibility by highlighting potential discrepancies with the rules.

The DWP Minister explained: “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.”

Furthermore, he stated: “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.”