DWP announces 'crackdown' and threatens claimants with 'three steps'

Rachel Reeves has announced a "crackdown on fraudsters" operating within the benefit system as part of an overhaul of the Department for Work and Pensions ( DWP ). Ms Reeves said she will crack down on fraud in the UK’s welfare system, as part of reforms to ensure welfare spending is “more sustainable”. She told the Commons: “Today, I am also taking three steps to ensure that welfare spending is more sustainable.

“First, we inherited the last government’s plans to reform the work capability assessment. We will deliver those savings as part of fundamental reforms to the health and disability benefits system that the Work and Pensions Secretary (Liz Kendall) will bring forward.

“Second, I can today announce a crackdown on fraud in our welfare system often the work of criminal gangs. We will expand DWP’s (Department of Work and Pensions) counter-fraud teams using innovative new methods to prevent illegal activity and provide new legal powers to crackdown on fraudsters, including direct access to bank accounts to recover debt. This package saves £4.3 billion a year by the end of the forecast.

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“Third, the Government will shortly be publishing the “Get Britain Working” White Paper tackling the root causes of inactivity with an integrated approach across health, education and welfare. And we will provide £240 million for 16 new trailblazer projects targeted at those who are economically inactive and most at risk of being out of education, employment or training to get people into work and reduce the benefits bill.”

Liz Kendall will spearhead the reforms to the DWP through this Parliamanent. Ms Kendall has previously cited the Government's goal to crackdown on those gaming the system. The crackdown is part of the Chancellor's attempt to rein in wasteful spending and plug the £22billion "black hole" in the public finances left by the Tories.