New laws to be introduced to crack down on fraud

24 Sep 2024 08:29 PM

The government will bring forward a new Fraud, Error and Debt Bill in this parliamentary session to crack down on fraud in the social security system.

• Fraud, Error and Debt Bill brought forward to tackle fraud in social security system
• New laws to give DWP more powers to catch fraudsters faster and prevent customers from getting into debt sooner
• Bill to include measures to protect vulnerable customers and ensure support goes to those who need it most

The Bill is expected to save £1.6 billion over the next five years and will extend and modernise DWP’s powers to stop fraud in its tracks, recover money lost to fraud and protect vulnerable customers from racking up debt.

Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and since the pandemic a total of £35 billion of taxpayers’ money has been taken away from those who need it most. 

The nature of fraud has also become more sophisticated, meaning without new legal powers, DWP cannot properly keep pace with the changing nature of fraud to tackle it robustly enough.

This legislation will give DWP powers to:

• Better investigate suspected fraud and new powers of search and seizure so DWP can take greater control investigations into criminal gangs defrauding the taxpayer.
• Allow DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries.
• Require banks and financial institutions to share data that may show indications of potential benefit overpayments 

The Bill will also include safeguarding measures to protect vulnerable customers. Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers. DWP will not have access to people’s bank accounts and will not share their personal information with third parties. 

We will also bring forward a Code of Practice which will be consulted on during the passage of the Bill to provide further assurance on the safe use of the powers. 

This legislation delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system. 

Further details on the scope of the legislation will be set out when the Bill is introduced.