Latest news with #ErrorandRecovery)Bill
Yahoo
5 days ago
- Business
- Yahoo
DWP claimants who go abroad 'could be monitored' as new powers on horizon
The Public Authorities (Fraud, Error and Recovery) Bill is expected to be rolled out from 2026, as per government-issued fact sheets. Figures from the Department for Work and Pensions indicates that the bill could lead to savings of £1.5 billion over the after five years, reports ChronicleLive. The new legislation includes provisions like driving restrictions of up to two years for repeat offenders who fail to repay falsely claimed benefits, amplified powers for the DWP to reclaim money directly from fraudsters' bank accounts, and an Eligibility Verification mechanism. READ MORE: Nationwide issues update on £200 payments and who can expect to be paid Get breaking news on BirminghamLive WhatsApp, click the link to join This Eligibility Verification Measure permits third-party entities, such as banks, to identify potentially fraudulent benefit claimants. But it does not grant the DWP with direct access to individual bank accounts despite widespread concerns when the plans were initially announced. It will not permit investigators to monitor the spending habits of benefit recipients. Instead, it will merely allow banks to collaborate with department investigators in identifying individuals who have exceeded the eligibility criteria. For example, if a Universal Credit recipient has savings exceeding the permitted threshold of £16,000. This can happen unintentionally when legitimate claimants are unaware that a change in circumstances affects their benefits eligibility. The new powers could prevent individuals from unknowingly accumulating debt with the Department for Work and Pensions (DWP) and discourage fraudsters from exploiting the welfare system. The Factsheets also suggest that there will be mechanisms in place to ensure "appropriate, proportionate, and effective use of the powers" to protect legitimate claimants. According to guidance on "The Government will begin implementing the Bill measures from 2026. "For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. "DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance." The DWP will also have the ability to request data from additional third-party organisations, such as airlines, to verify if individuals are claiming benefits while abroad, which may contravene eligibility criteria. The factsheet also details potential penalties for banks and other financial institutions that overshare information and other safeguards that will protect legitimate benefit claimants. The new measures in the bill will also empower the Public Sector Fraud Authority to: Utilise its expertise on behalf of other departments; Enhance detection and prevention of incorrect payments through new information gathering and sharing powers; Employ robust non-criminal sanctions and civil penalties as an alternative to criminal prosecution and to deter fraud; Boost the government's ability to reclaim public money, through new debt recovery and enforcement powers; Exercise new powers of entry, search and seizure to alleviate the pressures on the police in the most serious criminal investigations; Better manage fraud in future emergencies building on lessons learned during COVID-19.
Daily Mirror
5 days ago
- Business
- Daily Mirror
Countdown begins on DWP's new powers to monitor bank accounts
The new powers are part of a plan to crackdown on benefit fraud which is costing the system around £9.5billion The Public Authorities (Fraud, Error and Recovery) Bill is set to start its rollout from 2026, according to government-published fact sheets. Data from the Department for Work and Pensions indicates that the bill could result in savings of £1.5 billion over the subsequent five years. The new legislation includes provisions such as driving restrictions of up to two years for repeat offenders who fail to repay falsely claimed benefits, enhanced powers for the DWP to reclaim money directly from fraudsters' bank accounts, and an Eligibility Verification mechanism. This Eligibility Verification Measure allows third-party entities, like banks, to identify potentially fraudulent benefit claimants. However, it does not provide the DWP with direct access to individual bank accounts despite widespread concerns when the plans were first announced. It will not permit investigators to monitor the spending habits of benefit recipients. Instead, it will simply enable banks to work with department investigators in identifying individuals who have exceeded the eligibility criteria, as reported by the Daily Record. For instance, if a Universal Credit recipient has savings exceeding the permitted threshold of £16,000. This can occur unintentionally when legitimate claimants are unaware that a change in circumstances affects their benefits eligibility. As a result, the new powers could stop people from unknowingly racking up debt with the DWP and deter fraudsters from exploiting the welfare system. The Factsheets also indicate that there will be mechanisms in place to ensure "appropriate, proportionate, and effective use of the powers" to protect legitimate claimants. According to guidance on "The Government will begin implementing the Bill measures from 2026. For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. "DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance." The DWP will also be able to request data from additional third-party organisations. Such as airlines, to check if individuals are claiming benefits while abroad, which may contravene eligibility criteria. The factsheet also outlines potential penalties for banks and other financial institutions that overshare information and other safeguards that will protect legitimate benefit claimants. The new measures in the bill will also empower the Public Sector Fraud Authority to: Utilise its expertise on behalf of other departments Enhance detection and prevention of incorrect payments through new information gathering and sharing powers Employ robust non-criminal sanctions and civil penalties as an alternative to criminal prosecution and to deter fraud Boost the government's ability to reclaim public money, through new debt recovery and enforcement powers Exercise new powers of entry, search and seizure to alleviate the pressures on the police in the most serious criminal investigations Better manage fraud in future emergencies building on lessons learned during COVID-19
Daily Record
23-05-2025
- Business
- Daily Record
Nearly 6,000 DWP staff reviewing new and existing Universal Credit claims for ‘incorrect payments'
DWP has blocked £1 billion incorrect payments in a drive to protect people from falling into debt. More than £1 billion in incorrect Universal Credit payments have been blocked by the Department for Work and Pensions (DWP) in a drive to stop people falling into financial difficulties. The milestone was reached after a programme to review payments was ramped up by the Labour Government last summer, with more than one million cases now looked at. Overpayments can ultimately lead to financial difficulties for claimants by causing them to fall into debt. The 'Targeted Case Review' was introduced in 2022 to detect incorrect payments, with around 25,000 claims reviewed in the first year. Since July 2024, DWP has nearly doubled the number of people working in its Universal Credit Targeted Case Review team to 6,000. The Department said this significant increase in staff has boosted the number of existing claims reviewed to over one million, saving £1 billion in incorrect payments by detecting historic errors and preventing future overpayments that can result in debts accruing. The number of claim reviews will continue to ramp up now the department has reached its staff target, with nearly 6,000 staff to review claims with forecasted savings of £13.6 billion by 2030. Minister for Transformation, Andrew Western, said: 'This target could not have been reached without this significant boost to staffing numbers - meaning we now have forecasted savings of £13.6 billion by 2030. 'This is a vital programme not only ensuring overpayments are corrected but also makes certain people who are being underpaid receive the money they are entitled to. 'We will not tolerate fraud, error or waste and are committed to safeguard taxpayers' money so it can be invested in the public services we all deserve.' What is a Targeted Case Review? The 'Targeted Case Review' team reviews payments to prevent customers falling into or accumulating further debt, identify unreported changes in circumstances, correct claims retrospectively, and refer suspected cases of fraud for investigation. Reviews verify claimants' eligibility for the benefits they receive by sending a notification to their online account to request proof of identity and other documentation. In the Autumn Budget, the Labour Government committed to the continuation of Targeted Case Review activity for a further two years, with learnings used to prevent error from entering the welfare system in the first place. The aim is to help provide a fair, high-quality service that ensures customers receive their full entitlement and avoid unnecessary debt. These major milestones come as the UK Government outlines further plans to strengthen its ability to reduce fraud and error through the Public Authorities (Fraud, Error and Recovery) Bill. DWP said: 'This is alongside its work to support people into work and become less reliant on the benefit system to drive productivity and unlock growth as part of its Plan for Change.'
Yahoo
15-05-2025
- Business
- Yahoo
‘Staggering' number of DWP overpayments slammed by minister
Over £9 billion in benefits are estimated to have been overpaid over the past year due to fraud and error, a figure one government minister has called "staggering." Official statistics reveal the total overpaid benefit expenditure reached £9.5 billion in the year ending March, with fraud accounting for the majority. Meanwhile, an estimated £1.2 billion was underpaid during the same period, according to Department for Work and Pensions (DWP) figures. Fraudulent claims contributed £6.5 billion to the total overpayments, a decrease from £7.3 billion the previous year. However, overpayments due to claimant error rose to £1.9 billion, up from £1.6 billion, while official errors also increased, reaching £1 billion from £0.8 billion. Overpayments specifically related to Universal Credit saw a slight decrease, falling to £6.35 billion from £6.41 billion. DWP said people under-declaring their earnings remained the main cause of fraud overpayments, followed by benefits claimants failing to declare living with a partner, and thirdly people under-declaring their financial assets or capital. The department said it was able to recover some £1.1 billion of overpayments in the past year – £0.4 billion in housing benefit and the same amount in universal credit. While the overall figure fell from £9.7 billion in the previous year, it was still described as 'staggering' by minister Andrew Western. In a written statement published alongside the figures on Thursday, he said: 'This Government made a manifesto commitment that it will safeguard taxpayers' money and not tolerate fraud or waste anywhere in public services. 'With welfare benefits paid to around 24 million people, the welfare system is a deliberate target for both organised crime groups and opportunistic individuals and it is vital that the Government continues to robustly tackle fraud to ensure support goes to those who need it most. 'We are taking further steps to minimise error, ensuring the right people are paid the right amount at the right time.' The figures came as the Public Authorities (Fraud, Error and Recovery) Bill moved to the House of Lords for its second reading on Thursday. Its proposed reforms have been billed as delivering the 'biggest ever crackdown on fraud against the public purse'. The Bill seeks to curb multibillion-pound benefit fraud and includes allowing the DWP to recover money directly from fraudsters' bank accounts. It would also allow the DWP to have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay them back. In the Commons, a group of Labour MPs rebelled to support an amendment designed to curb Government powers to verify a person's benefit eligibility and the Liberal Democrats warned the Bill could result in 'Orwellian levels of mass surveillance of those who have means-tested benefits'. The DWP figures also show that fraudulent claims for Personal Independence Payments (PIP) 'remained at 1 in 100 claims' in 2025, which was the same as in 2024. The health-related benefit is at the heart of Labour's recently announced welfare reforms, making up £4.1 billion of the £6.4 billion savings. Disability advocate and founder of Purpl, Georgina Colman, said the statistics 'show how misdirected the cuts are.' 'It's clear that the majority of people claiming benefits like PIP are in need, so it's frustrating to see the harshness of the welfare cuts. PIP and other benefits are for the most vulnerable in society and taking away these lifelines could be counterproductive and leave people worse off.'
Daily Record
15-05-2025
- Business
- Daily Record
DWP says ‘staggering' level of benefit overpayments due to fraud and error in welfare system
Nearly £10 billion in benefit overpayments were issued over the last year. Reasons your Universal Credit may be cut by DWP Data revealing more than £9billion is estimated to have been overpaid in benefits because of fraud and error has been branded 'staggering' by a UK Government minister. The latest official statistics said the total rate of benefit expenditure overpaid in the year to the end of March was £9.5 billion - with fraud accounting for most of that sum. However, the new figures from the Department for Work and Pensions (DWP) also show that over the same period, an estimated £1.2billion was underpaid in benefits. Fraud accounted for £6.5 billion of the total overpayments figure in the year to March, down from £7.3billion a year earlier. Claimant error was up year-on-year, accounting for £1.9billion in the year to March, from £1.6billion the previous year, while overpayments because of official error also rose to £1billion from £0.8billion the previous year. Overpayment of Universal Credit fell slightly to £6.35billion, from £6.41billion in the previous year. DWP said people under-declaring their earnings remained the main cause of fraud overpayments, followed by benefits claimants failing to declare living with a partner, and thirdly people under-declaring their financial assets or capital. The Department said it was able to recover some £1.1billion of overpayments in the past year - £0.4billion in Housing Benefit and the same amount in Universal Credit. While the overall figure fell from £9.7billion in the previous year, it was still described as 'staggering' by minister Andrew Western. In a written statement published alongside the figures on Thursday, he said: 'This Government made a manifesto commitment that it will safeguard taxpayers' money and not tolerate fraud or waste anywhere in public services. 'With welfare benefits paid to around 24million people, the welfare system is a deliberate target for both organised crime groups and opportunistic individuals and it is vital that the Government continues to robustly tackle fraud to ensure support goes to those who need it most. 'We are taking further steps to minimise error, ensuring the right people are paid the right amount at the right time.' The figures came as the Public Authorities (Fraud, Error and Recovery) Bill moved to the House of Lords for its second reading on Thursday. Its proposed reforms have been billed as delivering the 'biggest ever crackdown on fraud against the public purse'. The Bill seeks to curb multibillion-pound benefit fraud and includes allowing the DWP to recover money directly from fraudsters' bank accounts. It would also allow the DWP to have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay them back. In the Commons, a group of Labour MPs rebelled to support an amendment designed to curb Government powers to verify a person's benefit eligibility. And the Liberal Democrats warned the Bill could result in 'Orwellian levels of mass surveillance of those who have means-tested benefits'.
