Universal Credit Fraud

Sarah Newton Excerpts

Wednesday 10th July 2019 Commons Chamber

[Justin Tomlinson]

I thank the hon. Gentleman, who has taken a proactive approach to this important issue. I share his comment that it is alarming. These are criminal actions by what are, frankly speaking, parasites who target some of the most vulnerable people in society. I give the House an assurance that the Department will do everything in its power to protect those vulnerable people, and I am sure that all hon. Members would support that.

There have been 4.4 million universal credit claims and, as it stands, 42,000 staff referrals for fraud have been made, which is less than 1% of all universal credit claims. That said, each and every one of those has the potential to be a serious case. We take them seriously, they are all fully investigated and, where appropriate, we will take action. We are in talks with the CPS on several cases and, as I have said, we have already had a successful prosecution. We will look at each of the cases raised and, where it is clear that the claimant is an innocent victim who has been targeted, there would be an expectation that they would not pay the money back.

I refute, however, the broader point about universal credit. We will spend £2 billion more than the legacy system, and I very much welcome the introduction of the help to claim scheme to provide an independent additional tier of support across the jobcentre network, provided by Citizens Advice.

We are actively making improvements to the system. We are using more real time information. We are working with data suppliers. We are doing more data matching. We are using the DWP landlord portal to verify housing costs and we are developing risk models to help to assess confidence in information that is provided. There is a balance, however. In debates we have had in recent years, hon. Members have rightly pushed to make advance payments available as quickly as possible. It is the balance between being able to support people who need funding—under current rules, a vulnerable claimant in need of financial assistance can access that funding on the first day of their claim—while ensuring that we have 100% confidence that the money goes to the right person.

We are not complacent. We take this matter very seriously. We have a team of 120 staff dedicated to working on advanced payments. As I said, every case referred to us is taken very seriously and we will use the full force of the law where appropriate.

[Sarah Newton (Truro and Falmouth) (Con)]

There are people offering help to those applying for benefits in exchange for a cut of what they subsequently receive—sometimes a very big cut. Will my hon. Friend consider outlawing that activity, and consider a public awareness campaign to warn people against this harmful exploitation and to signpost people to free, qualified benefits advisers such as Citizens Advice?

[Justin Tomlinson]

I thank my hon. Friend, who works tirelessly in this area. This is yet another example of a really helpful, constructive and proactive suggestion. I know the Secretary of State is very keen to see that brought forward, so that is a big yes from us. In terms of raising awareness, we are increasing training and guidance for frontline staff. Working in partnership with Action Fraud, we will be doing further national and regional press releases, social media and stakeholder engagement to raise awareness of the potential risk of fraud and of how to report it as quickly as possible.