![The DWP are working to clamp down on fraud and error in the benefit system (Image: Getty Images/Maskot)](/upload/news/2024/02/10/159491.jpg)
The Department for Work and Pensions (DWP) is working to clamp down on benefit fraud - but what does the DWP classify as fraud?
The benefits department is working on new ways to reduce levels of fraud and error with the benefit system which includes payments such as Universal Credit, Personal Independence Payment (PIP), Housing Benefit etc. The department will be introducing new powers over the coming months and years and these include allowing DWP investigators to access and collect data from banks to see where claimants are spending their money, allowing investigators to execute search and seizure orders, and being given the power to make arrests.
According to official data, in the 2022/23 financial year, fraud and error rates fell to 3.6% (£8.3 billion) from 4.% (£8.7 billion). In July last year, the DWP set a new target to save at least £1.3 billion in 2023-24 through its counter fraud and error resource. With the DWP clamping down, it is good to understand what the department means by fraud and error, so you can avoid accidentally falling into trouble.
The DWP splits fraud and error into three categories each with a different definition. These are Fraud, Claimant Error, and Official Error. According to official DWP documentation, a case is classed as "fraud" if the following three conditions apply:
The most common examples of benefit fraud seen by the DWP include:
The DWP describes "claimant error" as the claimant providing "inaccurate or incomplete" information to authorities or has "failed to report a change in their circumstances". At the same time, the DWP finds no evidence of "fraudulent intent" on the claimant’s part - so the error was classed as accidental and it was not planned.
The third is "official error", which is where the benefit has been paid incorrectly due to a failure to act, a delay or a mistaken assessment by the DWP, a local authority, or HMRC. In this instance, no one outside the department has "materially contributed, regardless of whether the business unit has processed the information".