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Universal Credit: Fraud

Answer

The Department takes its obligation to prevent, detect and investigate fraud very seriously and will investigate all claims where fraud may have been committed. We have recently set up a dedicated team to investigate a specific type of emergent fraud, and we are also committed to the use of penalties such as prosecutions and tough financial penalties to discourage fraudulent behaviour.

The Department has also recently been working to further improve knowledge and awareness of Universal Credit (UC) fraud amongst Jobcentre and Service Centre staff. Guidance has also been issued to ensure that all staff are aware how to quickly refer cases of suspected fraud to the Department’s Counter-fraud team.

Most welfare losses, across Government, arise from claimants failing to report changes of circumstances. UC provides a single, digital interface through which claimants can more easily report these changes. 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. 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

As of June 2019, potential fraudulent advance claims equate to less than 1 per cent of all Universal Credit claims.

Secondary information

Type

Written question

Reference

276511

Session

2017-19

Subjects

Fraud Universal credit

Link

View this Written question on www.parliament.uk