Dwp names worst benefit for fraud with three top loopholes used by cheats

STAGGERING FIGURES SHOW HOW BILLIONS OF POUNDS ARE LOST TO BENEFIT OVERPAYMENTS, INCLUDING FRAUD, EVERY YEAR 13:47, 30 May 2025Updated 13:49, 30 May 2025 The Department for Work and Pensions

has named the worst benefit for fraud and identified the three top loopholes used by cheats to scam the system. It's planning a major crackdown using new measures in the Public

Authorities (Fraud, Error and Recovery) Bill, which is expected to save £1.5 billion over the next five years. Proposed powers include requiring banks to monitor levels of capital in

claimants' accounts to ensure they aren't breaking the rules. The bill is part of wider plans set out in the Autumn Budget and Spring Statement to save £9.6 billion by 2030.

Billions are lost not only through fraud but also through errors made by claimants and DWP officials that lead to too much being paid out. READ MORE: In its report of fraud and error in the

benefit system for the last financial year ending on April 5, it estimated there was a total of £9.5 billion in overpayments in 2024/2025. Article continues below This includes £6.5 billion

of benefit fraud, £1.9 billion in claimant errors and around £1 billion in DWP errors. Most of this occurs within Universal Credit, where there are overpayments of £6.35 billion, including

£5.2 billion in fraud. The DWP says the top cause of Universal Credit fraud is under-declaration of earnings from work. This means a lower level of deductions so that a higher amount is paid

out on top of someone's wages. The second largest source of Universal Credit fraud is from claimants who fail to declare cohabitation. These people should be on a joint claim where

their partner's income and savings are also taken into account. Third on the list of loopholes is failing to declare financial assets that affect a claim. Universal Credit claims are

reduced when capital levels go over £6,000 and stopped altogether when savings reach a total of £16,000. DWP Minister for Transformation Andrew Western said: "Enhancing our powers is

essential to fulfilling our commitment to the public, as they will enable us to address the unacceptable levels of fraud and error we've inherited and better protect public funds.

Article continues below "By strengthening our ability to catch criminals and prevent overpayments, we can keep up with the evolving nature of welfare fraud while reducing the risk of

people falling further into debt, ensuring that more resources are directed towards improving the lives of people across the country." Join our dedicated BirminghamLive WhatsApp

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