Universal Credit Fraud

Baroness Eaton Excerpts

Wednesday 10th July 2019 Lords Chamber

[Baroness Buscombe]

My Lords, I am amazed if the noble Lord seeks to rely too heavily on the BBC. I am grateful that he is asking me, acting as a Minister for the department. To date we have received around 42,000 fraud referrals from staff relating to potentially fraudulent advance claims, and there have been around 4.4 million claims for universal credit; I say that because it is important to put this in context. As my noble friend said, this equates to less than 1% of claims taking out a fraudulent advance. We are unable to break this down to jobcentre level, but we know that the majority of those claims, 55%, are in the north-west. However, we are seeing an increase in the north-east, 14%, and the Midlands, 12%. This is entirely unacceptable, of course, so we are looking at the whole system at the moment to see what we can do to improve the situation.

[Baroness Eaton (Con)]

Will my noble friend confirm that her department has prosecuted people for these offences and will continue to pursue fraudsters?

[Baroness Buscombe]

My Lords, I absolutely agree with my noble friend. We have had one successful prosecution, and something like 1,420 other cases are live at the moment. I take this to heart, as this area is in my portfolio at the department. We are doing all we can to make sure that we up our game in taking on the whole issue of benefit fraud. Another key point is that universal credit is part of the process of reducing claimant fraud; unlike with the complex legacy system, where it was much more difficult for people to inform the DWP of changes of circumstances, people can now do that. They are in constant touch with their work coach. We also have real-time information. We know what people’s earnings are, so we are now far better able to tackle issues of fraud.