The Department for Work and Pensions (DWP) has outlined five measures it is using to tackle benefit fraud and incorrect payments across the UK welfare system. The update was provided to Parliament as the department continues to increase its counter-fraud activity.
The measures include additional staff, expanded checks on Universal Credit and Pension Credit claims, new legal powers and continued prosecutions where benefit fraud is established.
The DWP says its wider programme is intended to reduce losses caused by fraud, error and debt. Since the Autumn Budget 2024, the department has committed to delivering £14.6 billion in gross savings from these activities by the end of the 2030-31 financial year.
Measures
The DWP has identified five main areas of activity in its latest update.
The measures include:
- Deploying up to 3,000 additional staff in counter-fraud teams.
- Expanding Targeted Case Reviews (TCR) for Universal Credit claims considered at risk of being incorrect.
- Introducing Pension Credit Claim Reviews (PCCR) for claims identified as potentially incorrect.
- Implementing the Public Authorities (Fraud, Error and Recovery) Act 2025, which gives authorities additional powers to identify, prevent and deter fraud and error.
- Continuing to pursue prosecutions through the courts where benefit fraud is established.
The department says these measures are part of a broader approach involving operational activity, data analysis and targeted interventions.
Universal Credit
Universal Credit is specifically included in the latest fraud and error measures through Targeted Case Reviews.
A TCR involves checking claims where there is a risk that information may be incorrect or circumstances may have changed. The purpose is to establish whether the benefit being paid remains accurate.
A review does not, by itself, mean that a claimant has committed fraud. Benefit payments can be incorrect for a number of reasons, including changes in circumstances, mistakes or incomplete information.
Claimants should report relevant changes to their circumstances through the appropriate official channels to help ensure their Universal Credit payment is calculated correctly.
The government provides information about Universal Credit through its official GOV.UK Universal Credit service.
Pension
The DWP is also introducing Pension Credit Claim Reviews.
These reviews are intended to check claims that are considered at risk of being incorrect. Pension Credit is a means-tested benefit, meaning eligibility can depend on a person’s income and circumstances.
As with Universal Credit reviews, a review is not automatically an indication of fraud. The department can use checks to establish whether the information held on a claim remains accurate.
People receiving Pension Credit should report changes when required and keep relevant information up to date.
More information about eligibility and claiming is available through the official Pension Credit guidance.
Fraud
The DWP says the overall rate of benefit fraud is currently 2.2%, compared with a reported peak of 3.0% in financial year 2021-22.
The department is using several methods to identify potentially fraudulent claims. These include data and analytics designed to identify claims that may require further examination.
The DWP has also said it has specialist teams and processes for identifying fraudulent documents and claims.
Identity fraud is another area being monitored. The department says it can review claims involving suspected identity deception, including cases involving hijacked identities or fictitious households.
However, the DWP has said it will not publicly disclose detailed information about some of its fraud-detection methods. The department’s position is that releasing additional operational details could make it more difficult to prevent and detect fraud.
The government’s official benefit fraud reporting service explains how members of the public can report suspected fraud.
Legal
The Public Authorities (Fraud, Error and Recovery) Act 2025 is another part of the government’s approach.
The legislation provides public authorities with additional powers intended to help identify and recover money linked to fraud and error.
The DWP has also said it continues to pursue prosecutions in cases where benefit fraud is established.
Legal action is only one part of the department’s wider strategy. Other measures include identifying potentially incorrect claims, checking information and recovering overpayments.
The department has stated that it has several debt recovery powers available when losses occur, including powers involving the recovery of assets under the Proceeds of Crime Act.
Reporting
Members of the public can report suspected benefit fraud through the government’s official service.
The DWP asks people to provide as much relevant information as possible, such as the person’s name, address and details about the suspected fraud.
The government says reports can be made anonymously. People do not need to provide their name or contact details.
The DWP also advises people not to investigate suspected fraud themselves, gather additional information or tell the person that a report has been made. This is intended to reduce potential risks and allow officials to handle the matter through the appropriate process.
People should report suspected fraud only once rather than submitting multiple reports about the same circumstances.
Investigation
After receiving a report, the DWP assesses the information and decides whether further investigation is appropriate.
An investigation can take time, and the person who made the report will not normally be told the outcome.
The department says it will take action where an investigation establishes that benefit fraud has occurred. Possible consequences can include stopping or changing benefits, recovering money that was incorrectly paid and, in some cases, prosecution.
Not every report will result in action. There may be legitimate explanations for the circumstances described in a report, or the information may not affect the person’s entitlement to benefits.
The DWP has also disclosed information about internal fraud investigations. Of 40 benefit-related investigations completed by internal auditors during 2025-26, 39 involved DWP employees and one concerned a person working for an outsourced provider.
The department separately reported £612,715.50 in confirmed losses in its 2025-26 Annual Report and Accounts. It said it seeks to recover losses arising from internal fraud wherever possible and has debt recovery powers available for this purpose.
The latest update shows that the DWP’s approach combines additional staff, targeted claim reviews, data analysis, legal powers and court action. For claimants, a review or request for information does not automatically mean fraud has been established. The outcome depends on the evidence and the circumstances of the individual claim.
