The Department for Work and Pensions (DWP) has provided an update on its ongoing efforts to combat benefit fraud, detailing five key measures aimed at reducing fraudulent claims within the welfare system. These announcements were made during parliamentary sessions on Monday as the government responded to increased scrutiny of its fraud prevention strategies.
In a series of eight statements presented to MPs, the government highlighted the robustness of its approach to fraud, coinciding with preparations for the forthcoming Budget on 28 October. Chancellor John Healey faces growing challenges related to the UK’s financial position, with inflationary pressures partly linked to global events such as the conflict in Iran.
Lilian Greenwood, Parliamentary Under-Secretary for the DWP, emphasised the department’s commitment, stating: “Since the Autumn Budget 2024, the DWP has set a target to achieve gross savings of £14.6 billion by the end of the 2030-31 financial year through tackling fraud, error and debt.”
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She further explained that in 2026, the department has enhanced its approach through increased operational activity, utilisation of new powers, and targeted interventions designed to identify incorrect claims.
The five steps currently being implemented include improved data and analytics to identify at-risk claims, strengthened verification processes, and dedicated teams focused on detecting fraudulent documents and claims. The government noted that benefit fraud rates have decreased to 2.2% - the lowest since the pandemic - down from a peak of 3.0% in the financial year ending 2022.
Addressing concerns about identity fraud, Ms Greenwood reaffirmed the department’s stance: “Identity fraud is a serious criminal offence, and we are committed to tackling it. Our specialist teams employ rigorous checks and support mechanisms to safeguard those potentially victimised.”
While some information regarding losses from fraudulent claims using hijacked identities is available in this year’s Annual Report and Accounts, the DWP withheld further specifics to maintain the effectiveness of detection and prevention efforts.
Additionally, internal audits conducted in 2025-26 uncovered 40 benefit-related investigations, 39 of which involved DWP employees, with one linked to an outsourced provider. The DWP reported confirmed losses amounting to £612,715.50 during this period.
The department underscored its dedication to protecting public funds and pursuing recovery through available means, including asset recovery under the Proceeds of Crime Act.
Members of the public are encouraged to report suspected benefit fraud via the government’s dedicated channels, providing as much detail as possible, such as names, addresses, and the nature of the suspected fraud. Reports can be made anonymously, and individuals are advised to avoid conducting personal investigations or disclosing that they have submitted a report.
The DWP reviews all reports thoroughly; however, investigations can take time, and outcomes are not shared with the reporter. Enforcement actions may include benefit removal, repayment demands, or legal proceedings if fraud is confirmed.
For further details or to report benefit fraud, individuals should visit the official government website.