Crackdown on Universal Credit claimants after DWP scammed out of £1.1bn a year

The Department for Work and Pensions (DWP) has announced new measures to combat benefit fraud, which is costing taxpayers up to £1.1billion every year

The Department for Work and Pensions (DWP) is set to launch a crackdown on benefit fraudsters who are costing taxpayers as much as £1.1 billion each year. These swindlers falsely claim to live alone while actually cohabiting, enabling them to receive higher benefits.

In response to this issue, the DWP has inked two new contracts worth around £7 million to upgrade its fraud detection systems. The larger contract, valued at £5.08 million, was awarded to R+ Analytics, while the smaller £2 million contract was given to bedigital.

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These companies will support and maintain the DWP's Data Service Platform, a crucial tool in managing large data to identify fraud and error. The Government estimates that these measures could save taxpayers £1.6 billion over the next five years.

Fraudsters have cost the DWP an estimated £3.9 billion over the past four years, with the worst-case scenario reaching £4.5 billion, according to recent figures. Couples, whether married or not, typically have their joint income assessed to determine benefit entitlements.

However, hundreds of individuals are lying about their living situation to claim thousands in undeserved benefits fraud accounted for £7.4bn in the last year alone, which equates to £20m every day.

Recent cases have laid bare the full scale of this type of fraud. Emma Buck, a 49-year-old mother of six, swindled £85,000 by falsely asserting she was separated from her partner, who notably had a key to their shared home.

She escaped jail despite pleading guilty to the charges. Claire Finney claimed nearly £100,000 deceitfully, splurging it on extravagant holidays in Cyprus and was told to pay back a mere £11 a month, setting her up for over 700 years to clear the debt.

Becky Reed, feigning as a solo parent, pocketed £75,000 over a half-decade, with her ruse coming to light when her partner settled their internet bills. These incidents reflect the diverse tactics used to game the system, often eluding detection for extended periods and draining substantial funds from public coffers.

Joanna Marchong of the TaxPayers' Alliance expressed outrage, commenting: "Taxpayers will be left seething by these single swindlers."

With an eye on clamping down on such fraudulent activities, the DWP is on track to secure enhanced investigatory powers. Social networks like Facebook, TikTok, and Twitter are set to play pivotal roles in sniffing out dishonest claims regarding domestic circumstances.

Furthermore, the DWP expects financial entities to disclose account details, although direct access to individual bank accounts remains off-limits.

A representative from the DWP declared: "This Government will not tolerate fraud or waste anywhere in public services, including in the social security system. We are determined to reduce fraud and error and are currently exploring all options on how best to achieve our goal."

The Department for Work and Pensions (DWP) is currently undertaking an extensive review of Universal Credit claims, reaching out to claimants for further documentation and arranging telephone interviews. Those on Universal Credit could be contacted via their online accounts to submit additional supporting evidence such as bank statements, proof of identity, and details about housing expenses, income, and other earnings.

Some may also be expected to participate in phone interviews to discuss the details of their claims more thoroughly. The DWP has cautioned that non-attendance at these interviews may lead to payments being suspended.

A spokesperson from the DWP emphasised: "Your Universal Credit claim might be reviewed to make sure you're getting the right payment and support."

As a result of these reviews, changes to Universal Credit amounts may occur, with those affected being informed through their online accounts. Meanwhile, Labour has expressed intentions to toughen measures against benefit fraud, highlighting that the current scale of fraud amounts to nearly £10bn each year in costs to the taxpayer.

Marchong underlined: "As the Government seeks to sort out the public finances, failing to ignore the billions that are being lost by this benefit fraud would be a breach of trust with Britons.