Benefits Fraud: Warning Signs Who Are Under Investigation and What to Do | Personal Finance | Finance

Benefit claimants may feel like the Department for Work and Pensions (DWP) is constantly monitoring them, but it is important to understand what the department can actually see and how to tell if you are under investigation.

With the DWP’s own figures suggesting millions of pounds are lost to fraud every year, eligibility limits are putting pressure on some individuals to prove they are entitled to payments.

In the financial year to 2024, 3.7% (£9.7bn) of total benefit spending was overpaid due to fraud and errors, according to DWP figures.

To tackle this under the Labor government’s Fraud, Errors and Debt Bill, investigators will be given new powers, including requiring banks and financial institutions to share data that may contain evidence of potential benefit overpayments – including highlighting them of savings.

However, until this law comes into force, due to this perceived ubiquity, the DWP’s surveillance capacity is limited, particularly if the plaintiff is not being actively investigated. If benefits fraud is suspected, claimants are typically notified relatively soon after the suspicion is reported, which typically triggers an investigation.

Occasionally the department will carry out a spot check, although this is unusual. Depending on the type of benefits claimed and the seriousness of the allegations being investigated, claimants may be contacted by either the DWP, HMRC, Defense Business Services or their local authority.

Please note that your benefits may be temporarily suspended while the investigation is ongoing. However, you will receive a letter explaining this if it applies to your situation.

Citizen’s Advice recommends seeking advice from an adviser who can advise you of possible financial support if you experience financial difficulties during a benefits assessment.

If you are suspected of welfare fraud, prepare for a possible visit from a fraud investigation officer or a “cautionary interview,” which could be used in a criminal case. These procedures aim to collect information about your situation.

Not all benefit interruptions or inquiries mean you are under investigation, Citizen’s Advice stresses, adding that the DWP carries out regular checks to ensure benefits are paid out correctly.

The experienced lawyers at JD Solicitors note that investigations often drag on for several months, although certain complex cases can drag on for years while others are quickly concluded within weeks.

By improving its monitoring capabilities, the DWP is seeking greater power to require financial institutions to cooperate with benefit applicants to check their eligibility. The aim is not to view account details directly, but to ensure the accuracy of the benefits provided and, if the measures are approved, you can instruct the banks to provide the information.

Applicants may also be asked to provide information about any lifestyle changes that may have affected your benefits. You may need to provide proof of this, e.g. For example, a doctor’s note for those who want to prove that their condition has not changed, or bills showing who lives in your household.

If you apply for Universal Credit, you may be asked to provide copies of your passport, tenancy agreement or even photographs of yourself outside your home as part of the investigation.

More information about what happens when a person is suspected of welfare fraud can be found here.