The DWP has issued an update on how PIP (Personal Independence Payment) claims are reviewed after a query about fraudulent claims for the benefit.
Reform UK MP Rupert Lowe asked in Parliament for the Government to set out “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”.
In response, pensions minister Sir Stephen Timms shared figures showing the DWP employs around 2,700 people full time to review PIP claims, as of November 4.
With regard to the fraudulent claims question, Mr Timms directed to a page of a document which “shows levels of fraud and error in the benefits system, including PIP”.
The figures indicate that for the financial year ending April 2024, the fraud rate for PIP claims was 0.5 percent for claimant error, 0.3 percent for official error and 0.8 percent for overpayments.
Mr Timms clarified that the fraud statistics “only provide an estimate” of the percentage of cases that are fraudulent, and that one can calculate the total number by applying the percentage to the total number of PIP claims.
The latest estimates as of the end of July 2024 show there were 3.5 million PIP claimants, so in applying the numbers above, this means there would be 17,500 fraudulent claims due to claimant error, 10,500 due to official error and 28,000 due to overpayments.
PIP supports people who live with a long-term health condition or illness, including a daily living and mobility element with lower and higher rates depending on your level of need.
The current weekly payment rates are:
Daily living part
- Lower rate – £72.65
- Higher rate – £108.55.
Mobility part
- Lower rate – £28.70
- Higher rate – £75.75.
The question of benefit fraud has been in the headlines recently as new measures will allow DWP officials to carry out bank account checks where a claimant is thought to be fraudulently claiming benefits.
The new powers will also allow officials to search properties and seize of assets in cases where organised criminal gangs are abusing the benefits system.
Financial advisor Yiannis Zourmpanos, senior contributor at Bountii, voiced several concerns about the new measures, particularly as regards privacy.
He cautioned: “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.
“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.”
He warned that innocent claimants may be worried about “being caught up in this dragnet without cause”.
He added: “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.”