The DWP has shared an update about expanding its efforts to prevent fraud and error in the benefits system. Top officials from the department spoke recently to MPs about their work to stop wrongful payments.
This comes after new legislation was recently brought in with a raft of new powers for the DWP to clamp down on fraud and error. The new measures include bank account checks to verify the eligibility of people on Universal Credit, Pension Credit, and Employment and Support Allowance.
Officials were also given new powers to directly take an amount from a person’s bank account, where they owe the DWP funds and are refusing to pay up. DWP permanent secretary Peter Schofield told MPs that his team is stepping up its efforts to clamp down on fraud.
He said: “Absolutely this is a big focus for us in the department. Coming out of the pandemic, we set out a tackling fraud and error plan, to really drive down fraud and error, and a number of measures that we took.” Mr Schofield also mentioned how he plans to increase the focus on Pension Credit.
He explained: “Where we’ve focused on fraud and error really hard – and we’ve started with Universal Credit because it was the biggest area of loss – we’ve seen big improvements. We can now turn our attention to Pension Credit as well. We’re also doing a targeted case review, so I can add that to the list on Pension Credit.”
Targeted case review was originally brought in back in 2022 for Universal Credit, to check a claimant’s circumstances, such as their income and home situation. Claimants will often be required to provide evidence to verify their circumstances and that they are entitled to their payments.
The DWP was asked for more details about its plans to shift the focus on to Pension Credit. A DWP spokesperson said: “We are bringing forward the biggest fraud crackdown in a generation, as part of wider action to save £14.6billion by 2031. From 2026 to 2029, we will be conducting full case reviews of Pension Credit claims, which is forecast to save £500million over this period.”
These full case reviews will involve officials proactively checking the entitlements and and circumstances of Pension Credit claims that are deemed to be at risk of being incorrect. The group will also look for unreported changes in a claimant’s situation and correct claims retrospectively, to ensure people are paid the right amount and get the correct support.
The DWP said the targeted case reviews have already saved some £1billion by blocking incorrect Universal Credit payments. These reviews are expected to save an additional £1.2billion in 2030 to 2031.
Pension Credit claimants are urged to report any changes in their circumstances. Guidance on the Government website warns: “You need to report changes to you and your partner’s personal and financial circumstances. Your claim might be stopped or reduced if you do not report a change straight away. Some changes will increase the amount of Pension Credit you could get.”
For the latest money saving tips, shopping and consumer news, go to the new Everything Money website.