-
Over £600m to bolster the counter-fraud
frontline with thousands of trained specialists, stopping
around £2 billion in fraud over 3 years
-
New powers planned for specialist DWP staff to
arrest and carry out search and seizure
-
Measures also include boosted access to bank data on a
larger scale and a new civil penalty will prevent fraud going
unpunished
A £600 million plan to fight fraud in the welfare system will
introduce a range of new powers and boost the counter-fraud
frontline, saving the taxpayer £2 billion over three years.
Announced by Work and Pensions Secretary today, the “Fighting Fraud
in the Welfare System” plan outlines how 2,000 trained
specialists will review over two million Universal
Credit claims over the next five years, as part of bolstered
ambitions to ensure money is well spent and give taxpayers
confidence that funds are reaching those who need it.
Measures also include several new powers which will align DWP
with other government departments including HMRC. The new plan
sets out how DWP officers will be given powers to undertake
arrests, execute warrants, conduct searches and seize evidence –
all increasing their ability to tackle the most serious cases.
The plan also proposes introducing a new civil penalty to ensure
those who commit fraud face adequate punishment.
Additionally, the measures include the power to require
organisations, such as banks, to securely share data on a
larger scale. Currently, the DWP can only request data on
identifiable individuals. This change will allow DWP to
proactively identify potentially fraudulent claims - for example
knowing if claimants have too much in savings or are living
abroad which would make them ineligible for Universal Credit.
Further powers will improve the department’s access to
information from a wider range of organisations, growing the
department’s ability to drive fraud out of the benefit system.
Work and Pensions Secretary, said:
“The welfare system is there to help the most vulnerable. It is
not a cash machine for callous criminals and it’s vital that the
government ensures money is well spent.
“Fraud is an ever-present threat and before the pandemic,
our efforts brought fraud and error close to record
lows.
“This plan outlines what we need to fight fraud in 2022 and into
the future. Thousands of trained specialists, combined with
targeted new tools and powers, will mean we can keep up with
fraud in today’s digital age and prevent, detect and deter those
who would try to cheat the system.”
Minister for Government Efficiency, said:
"Taxpayers must have confidence that money spent on welfare
reaches those who really need it.
"This plan builds on the announcement of the new Public Sector
Fraud Authority, which will use data analytics to recover money
stolen from the taxpayer."
The new powers will be granted by parliament, subject to securing
time and approval.
The DWP brought fraud and error close to near record lows before
the pandemic, rolling out Universal Credit across the country. In
recent years, fraudsters have exploited the system as DWP
streamlined the processes for people to receive support as part
of the Government’s emergency support during the pandemic.
In response to this fraudulent activity the department undertook
expert interventions to identify and stop abuse of the welfare
system preventing billions from ending up in the wrong hands,
through the disruption of stolen identity fraud, retrospective
reviews of claims and the introduction of the Enhanced Checking
Service.
Other measures announced today include creating the Fraud
Prevention Advisory Group to bring together government and
external experts to identify and develop innovative ways to crack
down on fraudsters, including through more flexible and proactive
use of data. This comes as part of the Government’s wider
commitment to cut crime and give people confidence that the
welfare support system is functioning as efficiently as possible
to support those who need it.
-Ends-
Notes to Editors
- Fighting Fraud in the Welfare System will be published on
gov.uk on 19 May 2022.
- When parliamentary time allows, we plan to introduce a raft
of new powers, including bolstering the penalty regime by
introducing a new type of civil penalty for cases of fraud. This
approach of dealing with fraud by civil penalties follows that
taken by other government departments such as HMRC.
- Measures set out in the plan will stop an estimated £2billion
of loss over the next three years, and over £4billion of loss
over the next five years.
