The plans will start in the new year
Everything you need to know as DWP announces new Universal Credit fraud clampdown
- New Campaign Launch: The Department for Work and Pensions (DWP) is set to launch a new nationwide campaign focused on tackling Universal Credit fraud. This important initiative is scheduled to kick off at the end of January 2026.
- Key Focus Areas: The new anti-fraud drive will specifically target the three largest areas of financial loss for the department. These critical areas include living situations, self-employment earnings, and undeclared capital and savings.
- Campaign Goal: A key objective of the campaign is to raise awareness about the serious consequences of failing to report changes in circumstances. It also aims to educate Universal Credit customers on the specific types of changes they are legally required to notify the DWP about.
- Overpayment Figures: The DWP’s most recent annual report on fraud and error shows a significant amount of money was incorrectly overpaid to claimants. An estimated £9.5 billion was overpaid during the 2024/25 financial year, though this figure was a slight decrease from the previous year.
- Underpayment Figures: While the DWP focuses on overpayments, the report also tracked funds incorrectly withheld from claimants. The total amount of benefit underpayments remained consistent at £1.2 billion, accounting for 0.4 per cent of total benefits expenditure.
- Consequences of Not Reporting: Claimants risk significant penalties if they deliberately provide incorrect information or fail to update their circumstances. This negligence can lead to penalty fines, court proceedings, and even prevent them from receiving legitimate payment increases.
- Obligation to Report: All recipients of Universal Credit must satisfy specific eligibility criteria, and their payment amounts are determined by accurate personal information. The DWP stresses that unless people report their changing circumstances correctly, the proper benefit amount cannot be calculated.
- READ THE FULL STORY HERE: New Universal Credit fraud clampdown to focus on key loss areas
