DWP confirms new measures to stop people fraudulently claiming PIP

The Department for Work and Pensions (DWP) has recently reaffirmed its dedication to tackling fraud and error within the benefits system, with a specific focus on recovering debts related to Personal Independent Payments (PIP).

This was in response to a query from Sir John Hayes, a Conservative MP, who inquired about the DWP's efforts to address individuals fraudulently claiming PIP. In a written response, Andrew Western, Parliamentary Under-Secretary of State for the , detailed new strategies being put in place to "prevent fraud entering the system based on the types of cases and trends we have seen".

One such measure involves "introducing more rigorous checks for customers changing personal details, including bank accounts".

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Mr Western asserted: "DWP is committed to tackling fraud and error in the benefits system and to the recovery of debts, including those generated by Personal Independent Payments. Working closely with counter fraud experts, the DWP has introduced measures to prevent fraud entering the system based on the types of cases and trends we have seen."

New DWP measures to tackle benefit fraud

These include:

Strengthening the Identity and Verification Process to prevent fraudulent cases entering the system

Delivering awareness sessions for Case Managers and Healthcare Professionals, reinforcing action to take when suspicious cases are identified - for example, fake documents

Introducing more rigorous checks for customers changing personal details, including bank accounts

This move aims to strengthen the system's defences against fraudulent activities and safeguard the integrity of the benefits system.

Ms Western said: "DWP is delivering against key counter fraud activity, including investing in counter fraud professionals and building data analytical capabilities. The new Fraud, Error and Debt Bill will bring forward new measures to tackle fraud in the system.

"Details on the measures the Government will be legislating will be presented to Parliament in due course."

Amid rising concerns, the latest figures from the DWP show a staggering £90 million lost to fraud and error in the Personal Independence Payment (PIP) system in 2023/24. Across Great Britain, over 23 million people receive benefits, including more than 3.6 million PIP claimants.

Annually, fraud and error are racking up nearly a £10 billion bill for taxpayers. Since the start of the pandemic incorrect payments, including those claimed by criminal gangs, have cost £35 billion, reports .

Fraud

Fraud, as outlined on GOV.UK, only applies when claims meet all three specific conditions:

the conditions for receipt of benefit, or the rate of benefit in payment, are not met

the claimant can reasonably be expected to be aware of the effect on their entitlement

benefit payment stops or reduces as a result of a review of the claim.

Claimant error

When it comes to 'Claimant error', this refers to overpayments due to claimants providing wrong or incomplete information, or not reporting changes in circumstances. Importantly, these cases don't suggest any fraudulent intent by the claimant.

Official error

On the other hand, 'Official error' happens when benefits are wrongly paid because of inaction, delays, or incorrect assessments by the Department, local authorities, or His Majesty's Revenue and Customs. This can occur without any external influence and regardless of whether the department has processed the information correctly.

In December, Mr Western made it clear that the upcoming Fraud, Error and Debt Bill "will not give DWP access to any bank accounts, nor any information on how claimants spend their money". He assured that banks and financial institutions will only provide "limited information" to the Department, which will assist in confirming benefit eligibility by highlighting potential discrepancies with the rules.

Mr Western: "As set out by the National Audit Office, access to data is key to prevention and detection of incorrect payments. The Eligibility Verification Measure (EVM) in the proposed Fraud, Error and Debt Bill will not give DWP access to any bank accounts, nor any information on how claimants spend their money.

"It will require banks and financial institutions to share limited information with the DWP to help verify benefit eligibility by flagging possible conflicts with eligibility rules - for example the £16,000 capital limit in . The information gathered will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity."

He continued: "The legislation will set out key safeguards, including reporting mechanisms and independent oversight. No benefit entitlement decision will be made solely because of the data obtained under EVM and a final decision on benefit entitlement will always involve a human agent.

"If a claimant wishes to challenge or appeal a benefit decision, they can do so following DWP's appeals processes."