Benefit cheats refusing to pay up will face having stolen money
recovered from their bank accounts under new plans expected to be
announced in government's biggest fraud crackdown in a
generation.
Until now there was no way of clawing back cash from the bank
accounts of fraudsters who are not on benefits or PAYE and refuse
to pay up other than through lengthy and costly court cases.
The new powers will allow DWP to recover taxpayers' money faster
from those who have the means but refuse to pay back and follows
a commitment from the Prime Minister to introduce a new bill to
tackle benefit fraud in this parliamentary session.
As a last resort DWP will have the ability to directly recover
debt from bank accounts of those not on benefits or PAYE earnings
through regular or lump sum deductions.
The government has inherited a broken welfare system, with fraud
and error in the social security system currently costing the
taxpayer almost £10 billion a year and, since the pandemic, a
total of £35 billion of taxpayers' money has been incorrectly
paid to those not entitled to the money – including to criminal
gangs.
That's why ministers are expected to bring forward extensive
legislation to tackle fraud error and debt in the benefit system
and the public sector more broadly.
The measures are expected to save up to £1.5 billion over the
next five years and will extend and modernise DWP's powers to
stop fraud in its tracks, recover money lost to fraud and,
crucially, help protect claimants who may already be on the edge
financially from racking up debt.
It comes as the government seeks to bring forward measures
to overhaul the health and disability welfare system as part of
its Plan for Change, so it better supports people to enter and
remain in work and to tackle the spiralling welfare bill.
Secretary of State for Work and Pensions, , said:
“This government will not tolerate fraud and waste in the welfare
system as we make it fit for the 21st century as part
of our Plan for Change. The public expects this of us, and we are
delivering for them.
“People who seek to cheat the system should know – our new powers
will help us to catch you out and make sure you are held
accountable.
“We will also introduce new powers to minimise overpayments to
benefit claimants so that hard working families up and down the
country know their money is being protected.”
Modernising the DWP's approach to catching fraudsters is
necessary in order to keep pace with the changing nature and
increased sophistication of benefit fraud. The new reforms will
be tough on criminals, fair to claimants, and protect the
taxpayer.
The government will introduce safeguarding, reporting mechanisms
and independent oversight to ensure these powers are being used
fairly and effectively, and DWP staff will receive training on
the use of any new powers.
These new powers come on top of additional action DWP is taking
to tackle fraud and error in the welfare system. At the budget,
the Chancellor announced the biggest welfare fraud and error
budget package in recent history which is expected to save £4.3
billion in 2029-30.
This funding package will go towards programmes that will
prevent, detect, and correct fraud and error in the benefit
system. This includes 3,180 additional fraud and error staff
across DWP and HMRC saving £800 million in 2029-30, new
investment to verify changes in Universal Credit (UC) claims
saving £250 million in 2029-30 and extending the Targeted Case
Review to help spot incorrect UC claims saving £2.5 billion in
2029-30.
The Public Sector Fraud Authority is also set to gain new powers
– demonstrating a coordinated approach to combatting fraud across
the whole of Government.
The Cabinet Office's dedicated counter fraud squad is expected to
be given the ability to investigate and recover fraud on behalf
of other departments and public bodies for the first time.
Projections show this measure alone will save taxpayers at least
£50 million over ten years.
, Minister in the Cabinet
Office, said: “These new powers will give us the
tools to fight fraud wherever we find it in the public sector,
recovering taxpayers' hard-earned money from those stealing from
the public purse.
“There are companies getting away with fraud because government
investigators haven't had the powers to detect and recover fraud
across all parts of the public sector. We are changing this
to make sure that there is nowhere to hide for fraudsters."
-Ends-
Notes to Editors
- Further details on the measures and scope of the legislation
will be set out when the Bill is introduced.
