- Total rate of overpayments has fallen from 4.0% in 2022 to
3.6% in 2023
- The Universal Credit overpayment rate decreased by £400
million in a year
- Tide is starting to turn on benefit fraud after record high
levels during the pandemic
Fraud and error in the benefit system is falling, official
figures released today show, as the Government restated its
determination to drive levels down further and protect taxpayers’
money.
The latest national statistics confirm that in the last year
fraud and error rates in 2023 fell to 3.6% (£8.3bn) from 4.0%
(£8.7bn), with Universal Credit (UC) losses falling from 14.7%
(£5,920m) to 12.8% (£5,540m). The figures also reveal reduced
rates of fraud, both overall and within UC.
Secretary of State for Work and Pensions, MP, said:
“Our welfare system provides a strong financial safety net for
vulnerable people, and no one should be able to cynically abuse
that for profit.
“We are cracking down on fraudsters, and today’s figures show
encouraging progress as DWP works to both prevent new fraudulent
claims and collar cases where people have been shamelessly
exploiting the system.
“While we may be beginning to turn the tide on fraud, there is no
room for complacency and still much to do. Our £900 million Fraud
Plan will help us deliver savings of over £9 billion for the
taxpayer over the next five years.”
The rates of fraud and error are coming down, with statistically
significant decreases recorded in the UC overpayment rate and
rates of claimant error – which has reduced by over a third. The
official error overpayments rate is now at the lowest recorded
rate.
The overall rate of fraud overpayments is also down from the
highest recorded level in 2022 whenfraudsters took advantage of
the temporary easements the DWP put in place during the pandemic
to pay people who needed help.
The Government has been clear that it will crack down on those
exploiting the benefits system as they are stealing from those
who most need help.
Minister responsible for tackling fraud, , said:
“Benefit fraud is never a victimless crime, which is why it’s
entirely right we stop money going to fraudsters and serious
crime groups intent on exploiting the system – and is instead
paid to the people who need it.
“Cutting fraud delivers on the Prime Minister’s priorities,
reducing our national debt and helping to curb inflation by
protecting the hard-earned money of taxpayers.
“We’re starting to see the rates of fraud and error move in a
positive direction, thanks to our preventative work, alongside
vigorously pursuing fraudsters using the full range of our powers
to show that crime does not pay.”
Last year the Department for Work and Pensions launched a robust
plan to drive down fraud and error from the benefits system. The
“Fighting Fraud in the Welfare System” plan sits alongside
investment of £900m that will deliver £2.4bn of savings by the
end of next year, growing to over £9bn by 2027/28.
This additional funding will allow the Department to review
millions of Universal Credit claims over the next five years.
They also provide intelligence on new and emerging ways to
identify fraud and error entering the welfare system.
As part of the fraud plan, when parliamentary time allows, DWP
plans to introduce a raft of new powers, including strengthening
the penalty regime by introducing a new civil penalty for cases
of fraud, which will act as a deterrent to those cynically
seeking to exploit the system.
The new powers would also include requirements for organisations,
such as banks, to share data securely on an increased scale to
check levels of savings and whether claimants are living abroad.
There are also plans to increase DWP officers’ powers to conduct
searches, seize evidence, and make arrests.
If you believe your circumstances have changed, we encourage you
to get in touch with us so that we can ensure your entitlement is
correct. More information on this can be found on Gov.uk.
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