Legal News

The Department for Work and Pensions (DWP) has revealed that benefit fraud and overpayments for Jobseeker’s Allowance (JSA) and Income Support have fallen by £130 million since last year.

Benefit fraud now stands at 2% of the total welfare bill – an estimated £3.3 billion in benefit fraud and overpayment errors every year.

Initial estimates for fraud and overpayments in the year 2013-2014 stand at £1.1bn for benefit fraud, £1.5bn in overpayments as a result of claimant error – and £0.7bn as a result of overpayments resulting from official errors by the DWP.

The DWP and Local Authorities have been targeting benefit fraud and overpayment errors in the last year, including fraud and overpayment for housing benefit and Council Tax Benefit, as well as out-of-work welfare benefits and benefits for those in employment but still claiming benefits.

A total of £940m has so far been reclaimed in the last year in benefit fraud and overpayment errors, the DWP says.

Minister for Welfare Reform Lord Freud said the government was “striving to return fairness to the system”.

“It is encouraging to see that the level of fraud and error is now lower than before the start of the Parliament – and we are recovering more money than ever.

"Benefit fraud is completely unacceptable, but we know there is more to do –
and that is why we are toughening the rules to crack down on fraudsters as part of the government’s long-term economic plan.

"We are striving to return fairness to the system – and make sure money goes to those who need it; and the public can help us do this by informing the authorities of anyone they suspect of defrauding the system."

The Work and Pensions Committee has warned, however, that the DWP could face problems in stopping benefit fraud and benefit overpayments once the new combined welfare benefit Universal Credit is introduced.

Universal Credit combines current welfare benefits and is being phased in across the country after a series of delays meant a gradual rollout was needed.

Chair of the committee Dame Anne Begg MP said that there were problems with the new Universal Credit IT system, making it difficult to cross check all the data involved.

“Under the current housing benefit system, Local Authorities can cross-check claims across a range of data relating to other council services,” she said.

“Unless the DWP is able to cross-check Universal Credit claims in a similar way, it may be less effective in tackling fraud and error.”

Last week, the committee called for the government to publish details of benefit fraud and erroneous benefit overpayments separately to enable the public to differentiate between the two. The committee said that the public perception of benefit fraud was currently 34% higher than the actual figure.

Duncan Lewis Benefit Fraud Solicitors

Duncan Lewis is a leading firm of benefit fraud solicitors and can advise claimants at any stage of a charge for benefit fraud.

Duncan Lewis benefit fraud solicitors can also offer advice before a charge is brought, so claimants subjected to DWP or Local Authority investigations should get in touch before any benefit fraud charges are brought.

Duncan Lewis is also one of the UK’s leading Legal Aid solicitors.

For expert legal advice on benefit fraud, contact Duncan Lewis benefit fraud solicitors on 020 7923 4020.