Universal Credit Fraud

Baroness Seccombe Excerpts

Wednesday 10th July 2019 Lords Chamber

[Baroness Buscombe]

My Lords, I repeat that we take this issue incredibly seriously. First, there is no question of us stopping the rollout; we will not. It is already completed in that it is now in every jobcentre in the country. The termination of legacy benefits is triggered simply where a UC claim is made, not where it is treated as made. It is essential for a smooth transition from legacy benefits to universal credit that the trigger for the move is simple, and that legacy benefit overlap is avoided as far as possible or is otherwise accounted for. The chief goal is prompt and accurate payments of UC to claimants, and, where fraud is alleged, a fraud referral is raised so that the case can be investigated to assess the evidence to establish the facts and determine who was involved, including any third parties. In deciding whether the claim is valid, the consideration needs to factor in whether, or the extent to which, the claimant is involved in the claim.

We at the Department for Work and Pensions are doing all we can to take this matter extremely seriously. We are talking about crime and the money of the poorest being taken away and going to the wrong people. It is important to properly investigate every circumstance; we deal with this on a case-by-case basis.

[Baroness Seccombe (Con)]

My Lords, I read that less than 1% of claims are defrauded in this way. Is that correct?

[Baroness Buscombe]

It is entirely correct: 1% of all claims referred by staff are fraud claims. It is important to make it clear that we have trained our staff properly to investigate those claims when they are received, to make sure that the work coach can assess the claims and transfer them on to our fraud and investigation service.