DWP pink flags that might set off a profit fraud investigation
According to the Department for Work and Pensions’ own figures, benefit fraudsters are reportedly pocketing millions of pounds every year.
This has led to increased scrutiny around eligibility, putting pressure on some claimants to prove they’re entitled to their payments. However, despite feeling like they’re under constant surveillance, the DWP’s capacity to monitor is limited, especially if you’re not actively under investigation.
If you’re suspected of benefit fraud, you’ll be notified relatively quickly after the suspicions have been reported, typically triggering an investigation.
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The department may occasionally conduct a random check, but this is uncommon. DWP data reveals that in the financial year ending 2024, 3.7% (£9.7 billion) of total benefit expenditure was overpaid due to fraud and error.
(Image: PA)
To tackle this, the Fraud, Error and Debt Bill will grant investigators new powers, including the ability to require banks and financial institutions to share data that could indicate potential benefit overpayments, such as highlighting savings.
Under current rules, before these new measures come into effect, a person will be contacted by either the DWP, HMRC, Defence Business Services or their local authority, depending on the type of benefits claimed and the seriousness of the accusations being investigated. Your benefits may be halted during the investigation, but you will receive a letter explaining this if it applies, reports Leicestershire Live.
When you’re facing a tough time during a benefits investigation or if your payments have suddenly halted, Citizen’s Advice recommends seeking an adviser to explore alternative financial aid you might qualify for. If you’re under the suspicion of benefit fraud, you could get a knock from a Fraud Investigations Officer or be called in for an “interview under caution” a serious affair that’s taped for possible use in court proceedings.
Both situations are designed to gather evidence relevant to your situation. It’s wise to seek counsel from a lawyer, solicitor or Citizen’s Advice regarding your circumstances.
JD Solicitors notes that inquiries typically span a few months; however, they also point out some severe instances can stretch over years, whereas others wrap up in mere weeks.
Being involved with benefit investigations doesn’t always imply you’re in hot water, Citizen’s Advice cautions. Requests to verify information or suspended benefits don’t necessarily signal an ongoing probe.
The DWP makes regular checks to ensure claimants receive their rightful sums.
The DWP is also set to wield new authority requiring banks to yield basic data on applicants as part of their investigative process. This mandate stops short of giving investigators carte blanche to view claimant bank accounts directly; it merely allows them to request key details from financial bodies to confirm eligibility for benefits.
You might also be asked to provide information directly, such as any lifestyle changes that could have impacted your benefits. You may need to supply evidence of this, for instance, a doctor’s letter for those needing to demonstrate their health status hasn’t altered, or bills showing who resides in the household.
Those claiming Universal Credit could be requested to furnish copies of their passport, tenancy agreement or photos of themselves outside their residence.
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