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DWP confirms steps to tackle people fraudulently claiming PIP benefits

The Department for Work and Pensions (DWP) has confirmed the steps it will take to tackle fraud in the benefits system – more specifically for disability benefits.

The DWP has recently confirmed its plans in a written response to Conservative MP Sir John Hayes, who asked the benefit department what steps it is taking to “tackle people fraudulently claiming PIP”, reports the Daily Record. In response, Andrew Western, DWP minister and Labour MP for Stretford and Urmston, said the department was "working closely" with counter fraud experts to recover debts "including those generated by Personal Independent Payments."

In a written response, DWP Minister Andrew Western, explained new measures being introduced to “prevent fraud entering the system based on the types of cases and trends we have seen”. This includes “introducing more rigorous checks for customers changing personal details, including bank accounts”.

The DWP minister said the department had introduced measures to "prevent fraud entering the system" based on the types of cases and trends it had seen. This included

  • Strengthening the Identity and Verification Process to prevent fraudulent cases from entering the system
  • Introducing more rigorous checks for customers changing personal details, including bank accounts
  • Delivering awareness sessions for Case Managers and Healthcare Professionals, reinforcing action to take when suspicious cases are identified – for example, fake documents

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Western said the department was also investing in counter-fraud professionals and "building data analytical capabilities" in order to tackle it The new Fraud, Error and Debt Bill will bring forward new measures to tackle fraud in the system. He added: "Details on the measures the Government will be legislating will be presented to Parliament in due course.”

There are currently around 3.6 million people who claim PIP in the UK, and according to figures from the DWP show that the overpayment rate for PIP is now at its “lowest recorded level” of 0.4% – or £90 million – in 2023-24. The data also revealed that fraud by PIP claimants fell from 0.2% in 2022-23 to 0.0% of total spending on PIP in 2023-23 which sat at about £21.6 billion. Fraud by Disability Living allowance (DLA) claimants was estimated at just 0.1%.

The majority of overpayments were due to errors in which the claimant did not report a change in their needs. Only one in 100 PIP claimants was overpaid. For DLA, the overpayment rate was 0.5% or £30million in the financial year ending 2024. Around 0.2% was due to claimant error, mainly because claimants failed to report that they were admitted to hospital or care homes.

The data was published at the same time the former Tory government announced plans to tighten disability benefits and “sick-note culture” while cracking down on fraud within the welfare system more broadly. The Labour government has also adopted this plan.

Fraud and error in the welfare system currently costs the taxpayer around £10billion each year and since the pandemic a total of £35billion had been paid to those not eligible for the support. At the time the data was published, disability charities came forward to say that fraud within the disability benefits system was a "non-existent" issue and that resources should be used elsewhere.

At the time, Mikey Erhardt, campaigner at Disability Rights UK said: “New data shows what we, as disabled people, have known for years – PIP fraud is a non-issue. PIP fraud is now the lowest on record – despite the government placing fraud front and centre of their latest public announcements.”

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