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

Now the government is bringing forward a new Fraud, Error and Debt Bill to crack down on fraud in the social security system.

Why is this bill being introduced?

Fraud is becoming more sophisticated, meaning without new legal powers, the Department for Works and Pensions (DWP) cannot properly keep pace with the changing nature of fraud to tackle it head-on.

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

What powers will the bill give to the DWP?

This legislation will give DWP powers to:

  • Better investigate suspected fraud and new powers of search and seizure, so DWP can take greater control of 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 the government 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. 

The government intends to introduce the new Fraud, Error and Debt Bill in the 2024/2025 parliamentary session.