DWP identifies most common reasons for Universal Credit fraud ahead of crackdown

The Department for Work and Pensions is gearing up to launch a new offensive against benefit fraudsters as it identifies key reasons behind the rampant Universal Credit scams.

"We are not convinced why this must inevitably lead to growing losses to the taxpayer. We encourage our successor Committee to keep a close eye on this issue and to continue to hold the Department to account for its progress." Failing to provide evidence or engage with the DWP represents the second most prevalent reason for fraud, with the concealing of financial assets coming third. In a recent revelation, a pilot scheme utilising the DWP's reinforced powers to probe into claimant's bank accounts found 60,000 people possessing an average of £50,000, even though the eligibility threshold for Universal Credit is only £16,000.

The DWP has unveiled fresh strategies to curb benefit fraud losses, projected at £9 billion by 2028. This includes the introduction of a new Fraud Bill, equipping it with the same authority to tackle benefit fraud as HMRC has over tax fraud, including powers for arrests, searches, and seizures.

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