New DWP PIP crackdown guidelines coming into pressure as ‘fraud and error’ on the rise
The Department for Work and Pensions (DWP) has confirmed it will be bringing in new measures to clamp down on benefit fraud and welfare fraud under its new Public Authorities (Fraud, Error and Recovery) Bill
The Department for Work and Pensions (DWP) is tightening the screws on Personal Independence Payment (PIP) claimants with three new measures aimed at curbing benefit and welfare fraud. The DWP has unveiled details of its new Bill designed to clamp down on fraudulent claims.
The trio of measures includes “stricter checks for customers altering personal details, including bank accounts”, according to the DWP. It also involves “conducting awareness sessions for case managers and healthcare professionals, emphasising the necessary actions when suspicious cases are identified”.
The final measure will see the DWP “bolster the identity and verification process to prevent fraudulent cases from entering the system,” it says. Nearly four million people currently claim PIP from the DWP under the Labour Party government.
Figures released in April revealed a staggering £330m was lost to fraud and error in the PIP system last year, marking a significant jump from £90m in 2023/24.
The Public Authorities (Fraud, Error and Recovery) Bill is now making its way through Parliament. The DWP states that it “will reform the legislative framework to safeguard taxpayers’ money by helping identify, prevent and deter fraud and error across the public sector, and enable the better recovery of debt owed to the taxpayer”, reports Birmingham Live.
The proposed legislation is “a Bill to make provision about the prevention of fraud against public authorities and the making of erroneous payments by public authorities; about the recovery of money paid by public authorities as a result of fraud or error; and for connected purposes,” it further explains.
The report stage, an additional opportunity to meticulously examine and amend aspects of the bill, is slated to kick off on 15 October.
Charity Turn2Us has voiced its concerns, stating: “At the moment, the Bill’s focus on widespread fraud adds to a harmful narrative that a large proportion of people who claim benefits are doing so fraudulently.
“This isn’t true. In the financial year ending in 2024, just 2.8% of the government’s spend on overpayments was due to fraud.
“While it is important to tackle fraud, the narrative around the new law needs to reflect that most people claiming benefits are just trying to get the support they need.”
The charity went on to say: “As it stands, as well as giving the government new powers to recover money claimed fraudulently, the law would give them new powers to recover overpayments, like being able to recover money straight from people’s bank accounts if they are suspected of fraud.
“We know people are already struggling to apply for benefits because of how complicated the process can be.
“Including overpayments alongside fraud could make people even more hesitant to claim what they are entitled to, because they are afraid of being seen and treated as a criminal.”
