The DWP is halting prosecutions for many fraud cases due to a backlog, focusing only on serious organized fraud.
London: Benefit fraudsters are slipping through the cracks. The Department for Work and Pensions (DWP) can’t prosecute everyone. They’re focusing on big, organized fraud cases because of a huge backlog in the courts.
Taxpayer losses to fraud have skyrocketed. It jumped from £2.1 billion in 2019 to £7.4 billion in 2024. Plus, £1.6 billion was wrongly paid out due to honest mistakes by claimants.
This rise in fraud is linked to the DWP pausing claim checks during the Covid pandemic. They wanted to quickly help those in need, but it opened the door for criminals. Officials believe they can fix this by 2030.
Neil Couling, a DWP director, said, “We can’t prosecute our way out of this.” They’re prioritizing serious cases and using administrative penalties for smaller frauds. The courts are too busy with their own backlog.
Currently, there are 73,000 cases waiting for trial in crown courts. During a recent inquiry, Sir Pete Schofield from the DWP explained how the pandemic led to a surge in fraud and errors. Universal Credit applications soared to 2.4 million in just three months.
Sir Pete shared the challenges they faced, noting, “Some days, we had 100,000 claims.” They prioritized getting payments out, but that led to more fraud and errors in the system.
The government plans to hire 3,000 new enforcement staff. They hope to recover about £2.5 billion by 2029-30. A debate arose when officials noted an increase in fraud, with more UK residents admitting to fraudulent actions.
Sir Pete expressed concern about a growing trend towards fraud. Mr. Couling agreed, calling it a societal challenge. However, Debbie Abrahams, a committee chair, cautioned against labeling the public as increasingly fraudulent.
MPs will discuss new legislation soon. This could mean benefit fraudsters lose their driving licenses for two years. The upcoming Public Authorities Bill aims to give DWP investigators more power, allowing them to request search warrants and seize evidence.
