Millions of pounds are lost each year to fraud and error within the Personal Independence Payment (PIP) system, a key part of the welfare system administered by the Department for Work and Pensions (DWP).
According to recent figures, £330 million was lost in the PIP system last year due to fraud and error, showing a significant increase compared to £90 million the previous year.
This rise has led the DWP to introduce new measures in an effort to address and prevent fraudulent claims. The details of these actions were shared by DWP Minister Andrew Western in a response reported by Devon Live.
New Measures to Prevent Fraud in the PIP System
PIP, which provides financial assistance to individuals with disabilities, offers two separate components, each with two different payment rates depending on the recipient’s disability and the level of assistance required.
The lowest possible amount a person can receive is £29.20 per week, while the highest is £749 per month.
In response to questions from Conservative MP Sir John Hayes, DWP Minister Andrew Western outlined the department’s actions to tackle the rise in fraud. He stated that the DWP has introduced measures tailored to the types of fraud cases and trends observed. These measures include:
- Strengthening Identity and Verification: Enhancing the process to prevent fraudulent cases from entering the system.
- Rigorous Checks for Personal Detail Changes: Implementing more stringent checks when customers update personal details, such as bank account information.
- Awareness Sessions: Providing training for Case Managers and Healthcare Professionals to help identify suspicious cases, including the use of fake documents.
Minister Western further emphasized that the DWP is actively investing in counter-fraud specialists and improving its data analysis capabilities.
Additionally, the government will soon introduce the Fraud, Error, and Debt Bill, which will bring forward new measures to strengthen efforts in combating fraud within the system. Full details of the legislation will be presented to Parliament in the near future.
“The DWP has introduced measures to prevent fraud entering the system based on the types of cases and trends we have seen,” Minister Western stated in response to inquiries.
He added that the department is actively investing in counter-fraud professionals and improving data analytical capabilities to enhance fraud detection.
A Broader Context of Fraud in the Welfare System
The issue of fraud is not isolated to PIP; across the entire welfare system, fraud and error cost the government £9.5 billion last year, slightly down from £9.7 billion in 2023/2024. Fraud in the benefits system occurs when three conditions are met:
- The claimant does not meet the conditions to receive the benefit or the exact rate.
- The claimant is reasonably expected to be aware of this discrepancy.
- A review reveals that the benefit either stops or is reduced.
The new Fraud, Error, and Debt Bill will bring forward new measures to tackle fraud in the system – Minister Western confirmed.
Full details of the new legislative actions will be presented to Parliament at a later date, as the government continues its fight against fraud in the welfare system.
The government’s latest efforts are part of a broader strategy to address these systemic issues and ensure that public funds are allocated fairly and effectively.
