According to the DWP, there was an estimated £6.3billion worth of welfare fraud last year, and £2.1billion worth of error. The vast majority of people will claim fairly, and only what they are entitled to.
But to protect the system, the Department may have to take action, and claims can be investigated at any time – even over the festive period.
The Government states people commit benefit fraud if they claim benefits they are not entitled to on purpose.
This includes:
- Not reporting a change in circumstances
- Providing false information.
For example, a person could commit benefit fraud if they are receiving unemployment benefits, but actually working.
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The most common of these include:
- Inspector reports from surveillance
- Photographs or video
- Audio recordings
- Correspondence
- Financial data, including bank statements
- Interviews with a person or those they know
- Evidence submitted by the person who reported the suspected benefit fraud.
Information such as bank statements can help investigators determine if a person has more money than they are claiming to have.
Investigators may also use social media accounts to help build a clearer picture of a person’s life.
Posts such as pictures, location check-ins and statuses could all be used to see if a person’s life on social media is consistent with their benefit claim.
After an investigation takes place, a number of actions could occur.
Some may be found not to have committed benefit fraud, and can return to their day-to-day lives.
However, if it is found a person has committed or attempted fraud, one or more of the following could happen:
- A person is told to pay back the overpaid money
- A person may be taken to court or asked to pay a penalty between £350 and £5,000
- Benefits may be reduced or stopped.
People should be aware only certain benefits can be reduced or stopped and these are known as sanctionable benefits.
The DWP added: “If you commit fraud on a benefit that cannot be reduced or stopped, your other benefits can be reduced instead.”
The Fraud and Error service of the DWP only takes action if they find a person has been committing benefit fraud.
Sometimes no action is taken, as a person may have declared a change in circumstances, or their benefit may not be affected by what has been reported.
