DWP PIP fraud query reveals 28,000 overpayments as bank account checks planned

The Department for Work and Pensions (DWP) has issued an update on the review process of Personal Independence Payment (PIP) claims in response to a question about fraudulent benefit claims. Reform UK MP Rupert Lowe raised a question in Parliament, seeking clarity from the Government on "what the total number of staff employed to review Personal Independence Payment claims is; and how many fraudulent claims were made in each of the last five years".

Providing a response, pensions minister Sir Stephen Timms stated that as of November 4, there are approximately 2,700 full-time staff members dedicated to reviewing PIP claims at the DWP. Addressing the concern over fraudulent claims, Mr Timms pointed to a document page which "shows levels of fraud and error in the benefits system, including PIP".

According to the data, for the financial year ending April 2024, the fraud rate for PIP claims stood at 0.5 percent due to claimant error, 0.3 percent due to official error, and 0.8 percent for overpayments. Mr Timms emphasised that these figures "only provide an estimate" of the actual number of fraudulent cases, which can be determined by applying the percentages to the overall number of PIP claims.

With the latest estimates indicating that there were 3.5 million PIP claimants at the end of July 2024, the calculated numbers suggest around 17,500 fraudulent claims were made due to claimant error, 10,500 due to official error, and 28,000 due to overpayments. PIP offers crucial financial support to individuals with long-term health conditions or disabilities, providing two components: daily living and mobility, with the rates tailored to the claimant's needs.

The current weekly payments stand at £72.65 for the lower daily living part and £108.55 for the higher rate; while the mobility component pays £28.70 on the lower end and £75.75 on the higher rate.

Benefit fraud has been in the spotlight recently due to upcoming regulations that will grant DWP officials greater authority to examine bank accounts where a fraudulent claim is suspected. Other new measures will allow property searches and assets to be confiscated in cases of organised crime relating to benefit fraud.

Yiannis Zourmpanos, senior contributor at Bountii, casts a critical eye on these measures, with particular concerns about privacy. He remarked: "The idea that the Government can peer into your bank account feels invasive, and I understand why. From a financial perspective, this kind of oversight raises ethical issues."

Nonetheless, he recognises the complexity of the issue, conceding: "But remember, it’s also a balancing act. The DWP is trying to ensure that public funds are being properly allocated, and they’re arguing that the level of fraud demands a tougher stance."

Mr Zourmpanos also warned that the new measures could leave innocent claimants feeling anxious about "being caught up in this dragnet without cause". He recounted an instance from his own experience, stating: "I’ve had clients before who were questioned about receiving financial help from family members, and while everything was legitimate, it still took time and effort to clear things up."