According to data obtained through a Freedom of Information (FOI) request by AP automation firm Basware and reported by City AM, the DWP spent £44.5million on anti-fraud staff last year – this is well over double the £15.5million it spent in 2021-22
In a bid to crack down on benefit fraud, the Department for Work and Pensions (DWP) has increased its anti-fraud staff costs by nearly 200% since 2021.
According to data obtained through a Freedom of Information (FOI) request by AP automation firm Basware and reported by City AM, the DWP spent £44.5million on anti-fraud staff in 2023-24. This is well over double the £15.5million it spent in 2021-22. City AM reports that the near £30million hike in spending was due to the benefits department more than doubling its anti-fraud staffing headcount. The number of staff working on benefit fraud sat at 398 in 2021-22 and rose to 1,076 in 2023-24.
The data also revealed that the DWP saw an increase in suspicious invoices last year compared to four years ago. In 2021-22, it rejected 2215 invoices which valued at £64.3million however last year it received 2,416 suspicious invoices valued at £186.8million.
Commenting on the data, Jason Kurtz, chief executive of Basware, told City AM: “Rooting out fraud is a major challenge facing large organisations, with many lacking the technical resources and specialist capabilities to tackle it effectively.Clamping down on [fraud] requires a concerted effort from finance teams, harnessing the power of AI to identify and verify legitimate payments, whilst isolating and rejecting suspicious submissions before payment is made.”
The FOI comes after it was revealed this week that the DWP will be given new powers to take money directly from the bank accounts of fraudulent benefit claimants. Under current rules, investigators need a court order before they can deduct money from someone’s wages or bank accounts. However, according to a report by the Sunday Telegraph last week, the new measures will make it easier for them to recoup money from benefit fraudsters.
Investigators will also be given the ability to access information about suspected fraudsters from all private companies, not just banks, utilities and employers. The DWP is looking to save £1.6billion over the next five years as part of a new crackdown on benefit cheats.
Writing in the Sunday Telegraph, Work and Pensions Secretary Liz Kendall said it was “absurd” that investigators’ powers had not been updated in the last 20 years. She said the enhanced information-gathering powers would allow the state to “stop serious fraud in its tracks by making sure people really are who they say they are”.
She said: “My team are still, in 2024, sending letters to gather evidence for those suspected of welfare fraud, slowing them down to a snail’s pace when they could be shutting down serious fraud cases. Our bill will give them similar powers as HMRC to investigate fraudsters – it’s time we give them the tools they need for the fight.”
