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Universal Credit: Fraud

Answer

Under Universal Credit (UC) claimants will only have one claim to benefit, whereas under Legacy, they may have made claims to multiple benefits. It is therefore not possible to draw a direct comparison between the caseloads of UC and Legacy benefits. UC will also incorporate Tax Credits which is currently administered by Her Majesty’s Revenue and Customs, who record their overpayments differently.

The Department is open and transparent about the cost of fraud and error in the benefit system, publishing our National “Fraud and Error in the Benefit System” statistics each year which detail the amount we estimate is lost to both fraud and error across all benefits.

Most welfare losses, across Government, arise from claimants failing to report changes of circumstances, Universal Credit (UC) provides a single, digital interface through which claimants can more easily report these changes. As such, once UC is fully rolled out, we expect cross-welfare losses to fraud, error and overpayments to be reduced by around £1 billion per year. UC also allows us to adjust benefit entitlement in line with changing circumstances in real time. Internal and external data matches are increasingly helping to inform benefit payments and alerting staff to check for any undeclared changes in people’s circumstances.

As of June 2019, the Department has received around 42,000 fraud referrals from staff relating to potential fraudulent advance claims, which equates to less than 1 per cent of all Universal Credit claims.

Secondary information

Type

Written question

Reference

275667

Session

2017-19

Subjects

Fraud Universal credit

Contains statistics

Yes

Link

View this Written question on www.parliament.uk