The DWP is stepping up accuracy checks for Universal Credit claims and can now directly recover debts from former claimants who refuse to repay
The DWP is ramping up scrutiny of Universal Credit claims to root out mistakes. This development follows the introduction of sweeping new powers designed to tackle fraud and incorrect payments within the welfare system.
Among the fresh measures are bank account inspections, which will compel financial institutions to provide information on accounts associated with benefits that may not qualify for support. Initially, these eligibility verifications will focus on Universal Credit recipients, alongside those receiving Employment and Support Allowance and Pension Credit.
The law allows for potential extension to additional benefits. Liberal Democrat MP Max Wilkinson raised a written parliamentary question regarding what action the DWP is pursuing “to prevent fraud relating to Universal Credit recipients claiming for properties they no longer occupy”.
DWP minister Sir Stephen Timms provided a reply, stating: “Since Autumn Budget 2024, the Government has committed to gross savings of £14.6billion up to the end of 2030/31 from fraud, error and debt activity in Great Britain.”
Mr Timms explained the savings will come through “the new powers contained within the Public Authorities (Fraud, Error and Recovery) Act, an extension to continue targeted case reviews to check accuracy of Universal Credit (UC) claims at risk of being incorrect until 2031, and the introduction of periodic redeclaration for Universal Credit claims to ensure claim accuracy, reduce fraud and error, and prevent avoidable debt”, reports the Mirror.
The targeted case review system verifies that all information is accurate and current for individual claimants, ensuring they receive the correct payment amount. Officials may request claimants submit documentation to verify their circumstances.
Evidence requirements for claimants
Launched in 2022, the initiative was detailed in a 2023 video by DWP senior official Neil Couling, who noted: “Customers are asked and supported to provide evidence, including bank statements, to identify any discrepancies.”
The recently enacted Public Authorities (Fraud, Error and Recovery) Act grants officials authority to withdraw money directly from bank accounts when individuals owe the DWP and refuse repayment. Advance notification will be provided, allowing people to challenge the action.
This provision specifically targets former benefit recipients who still have outstanding debts to the DWP. Until now, the department could only recover owed money via PAYE deductions from wages or by reducing ongoing benefit payments.
