The DWP is ‘committed’ to tackling fraud and error within the benefits system, including recovering debts generated by Personal Independent Payments
The Department for Work and Pensions (DWP) has affirmed its commitment to combating fraud and error within the benefits system, including recouping debts generated by Personal Independent Payments ( PIP ). Conservative MP Sir John Hayes recently queried the DWP about what actions it is taking to “tackle people fraudulently claiming PIP”.
In a written response, DWP Minister Andrew Western outlined new measures being implemented to “prevent fraud entering the system based on the types of cases and trends we have seen”. This includes “introducing more rigorous checks for customers changing personal details, including bank accounts”.
Mr Western said: “DWP is committed to tackling fraud and error in the benefits system and to the recovery of debts, including those generated by Personal Independent Payments. Working closely with counter fraud experts, the DWP has introduced measures to prevent fraud entering the system based on the types of cases and trends we have seen.”
New DWP measures to tackle benefit fraud
These include:
- Strengthening the Identity and Verification Process to prevent fraudulent cases from entering the system
- Introducing more rigorous checks for customers changing personal details, including bank accounts
- Delivering awareness sessions for Case Managers and Healthcare Professionals, reinforcing action to take when suspicious cases are identified – for example, fake documents
The Minister continued: “DWP is delivering against key counter fraud activity, including investing in counter fraud professionals and building data analytical capabilities. The new Fraud, Error and Debt Bill will bring forward new measures to tackle fraud in the system.
“Details on the measures the Government will be legislating will be presented to Parliament in due course.”
The Department for Work and Pensions (DWP) provides benefits to nearly 24 million people across Great Britain, including 3.7 million on Personal Independence Payment (PIP). The latest DWP report reveals that £330m was lost to fraud and error in the PIP system last year, a significant increase from £90m in 2023/24, reports the Daily Record.
Fraud and error in the welfare system resulted in overpayments costing the taxpayer £9.5bn last year, slightly less than the £9.7bn in 2023/24.
Fraud
This guidance on GOV.UK explains that this relates to claims where all three of the following conditions apply:
- the conditions for receipt of benefit, or the rate of benefit in payment, are not met
- the claimant can reasonably be expected to be aware of the effect on their entitlement
- benefit payment stops or reduces as a result of a review of the claim.
Claimant error
These are instances where overpayments have occurred because claimants have provided inaccurate or incomplete information, or failed to report a change in their circumstances. However, there is no evidence of fraudulent intent on the part of the claimant.
Official error
This occurs when benefits have been paid incorrectly due to a failure to act, a delay, or a mistaken assessment by the Department, a local authority, or His Majesty’s Revenue and Customs. This happens regardless of whether anyone outside of that department has materially contributed, irrespective of whether the business unit has processed the information.
PIP changes in circumstances
There are several changes in circumstances that people receiving PIP must inform the DWP about, or they risk losing their benefit entitlement and having regular payments paused or stopped.
It’s crucial to understand that updating your name, GP, healthcare provider or address doesn’t require notification to the DWP and won’t influence your payments or award – though it’s beneficial to ensure the DWP maintains current details on record. Nevertheless, departing the country or intending to leave Britain for more than four weeks – even for a simple holiday – could impact eligibility.
Instructions in the latest PIP Handbook on GOV.UK explain: “This change may affect the claimant’s entitlement to PIP. We will need to know the date the claimant is leaving the country, how long they are planning to be out of the country, which country they are going to and why they are going abroad.”
Should you be planning overseas travel in the coming weeks, ensure you notify the DWP with the requested information immediately – and bear this in mind when arranging summer breaks this year.
How to notify DWP of circumstance changes
Ring the PIP enquiry line on 0800 121 4433 to declare a change of circumstances – phone lines operate 9am to 5pm, Monday to Friday. Below is a complete breakdown of all circumstance changes and whether DWP contact is required.
Changes to daily living or mobility requirements
You must inform DWP if, for instance, you require additional or reduced assistance or support, or the condition will persist for a longer or shorter duration than you initially disclosed to DWP. This alteration could impact your Personal Independence Payment (PIP) entitlement, the amount you receive and the duration of your PIP award.
If you’re leaving the country or planning to leave for more than four weeks – even if it’s just for a holiday
This could affect your eligibility for PIP. The Department for Work and Pensions (DWP) needs to know when you’re leaving, how long you plan to be away, where you’re going and why you’re going abroad.
Hospital stays or similar institutions
According to DWP guidelines, both components of PIP stop being payable 28 days after you’re admitted to an NHS hospital.
Those who are privately funded patients aren’t affected by these rules and can continue to receive either component of PIP. If you’re in hospital or a similar institution when your PIP entitlement starts, PIP isn’t payable until you’re discharged.
Care homes
The daily living component of PIP stops being payable after 28 days of residency in a care home where the costs of the accommodation are met from public or local funds. However, the PIP mobility component can continue to be paid.
Those who fully self-fund their placement aren’t affected by these rules. If you’re in a care home when your PIP entitlement begins, the daily living component isn’t payable until you leave.
Linked spells in hospital and a care home
Hospital stays are connected if the gap between them is no more than 28 days. The daily living component for periods in a care home is also linked if the gap between them is no more than 28 days. There is no link for the mobility component as payment is not impacted when in a care home. Both components of PIP will cease to be paid after a total of 28 days in hospital.
The daily living component of PIP will stop being paid after a total of 28 days in a care home. If a claimant transitions between a hospital and care home, or vice versa, these periods will also link.
Imprisonment or claimant held in legal custody
This change may influence the amount of PIP that can be paid to the claimant. The DWP needs to be informed of the date the claimant was taken into prison or legal custody and the expected duration of their stay, if known.
Detained in legal custody
PIP stops being payable after 28 days where someone is being detained in legal custody. This applies whether the offence is civil or criminal and whether they have been convicted or are on remand.
Suspended payments of benefit are not refunded regardless of the outcome of proceedings against the person. Two or more separate periods in legal custody link if they are within one year of each other.
Change of name
This change will not impact payment or eligibility for PIP, but it is crucial the DWP has the most current details for the claimant.
This alteration must be communicated in writing – if the claimant rings up to provide these details, the DWP will request that they be put in writing. The written notification should include:
- full details of their previous name
- their new name
- details of any changes made to the bank or building society account into which PIP is paid, such as the name of the account or the account number
- their signature on the letter
Change of account PIP is paid into
The DWP requires full details of the name and address of the new bank or building society along with details of the new account including the name of the account, the account number and the sort code or roll number.
Change of person acting for the claimant
This refers to an appointee or someone with power of attorney for the claimant. This change is crucial so the DWP can make payments to the correct person at the right time. They need the full name, address and contact details of the new person who is acting for the claimant.
If the person acting for the claimant has moved or has different contact details, the DWP just needs the new details.
Change of address
Provided it’s not a hospital or nursing home, this change won’t affect eligibility or payment of PIP. It’s important that the DWP have the most current details for the claimant. They need full details of the new address the claimant has moved to, including the postcode and the date they moved.
Change of doctor or healthcare professional
This alteration won’t impact the payment or eligibility for PIP and isn’t compulsory once a decision on the PIP claim has been reached. However, if the change occurs during the claiming process, it’s crucial that the DWP is provided with the most recent information. This ensures that the assessment provider has the correct contact details to collect any additional details they might need.
The DWP requires the complete name, address, and contact information of the new doctor or health care professional. Comprehensive details about changes of circumstance if you are receiving PIP can be found in the online handbook here.
