New benefit counter-fraud plan set to save taxpayer £2bn

New powers are also planned for specialist Department for Work and Pensions (DWP) staff to arrest and carry out search and seizure and new measures include boosted access to bank data on a larger scale and a new civil penalty will prevent fraud from going unpunished.

Work and Pensions Secretary Thérèse Coffey said the Fighting Fraud in the Welfare System plan outlined how 2,000 trained specialists will review over 2 million Universal Credit claims over the next five years, as part of bolstered ambitions to ensure money is well spent and give taxpayers confidence that funds are reaching those who need it.

Measures also include several new powers that will align DWP with other government departments including HMRC. The new plan sets out how DWP officers will be given powers to undertake arrests, execute warrants, conduct searches and seize evidence – all increasing their ability to tackle the most serious cases. The plan also proposes introducing a new civil penalty to ensure those who commit fraud face adequate punishment.

Additionally, the measures include the power to require organisations, such as banks, to securely share data on a larger scale. Currently, the DWP can only request data on identifiable individuals. This change will allow DWP to proactively identify potentially fraudulent claims – for example knowing if claimants have too much in savings or are living abroad that would make them ineligible for Universal Credit.

Further powers will improve the department’s access to information from a wider range of organisations, growing the department’s ability to drive fraud out of the benefit system.

The plan builds on the announcement of the new Public Sector Fraud Authority, which will use data analytics to recover money stolen from the taxpayer.

The new powers will be granted by Parliament, subject to securing time and approval.

Other measures announced include creating the Fraud Prevention Advisory Group to bring together government and external experts to identify and develop innovative ways to crack down on fraudsters, including through more flexible and proactive use of data. This comes as part of the government’s wider commitment to cut crime and give people confidence that the welfare support system is functioning as efficiently as possible to support those who need it.