The spectre of benefit fraud has been raised as the Department for Work and Pensions (DWP) looks at bank account checks. Rupert Lowe, an MP for Reform UK, posed at question to the Government about "what the total number of staff employed to review Personal Independence Payment (PIP) claims is; and how many fraudulent claims were made in each of the last five years".
Pensions minister Sir Stephen Timms issued a response - saying the DWP has roughly 2,700 full-time staff members actively reviewing PIP claims as of November 4. He referred to figures presented in a report which "shows levels of fraud and error in the benefits system, including PIP".
The numbers are illuminating - showing that for the financial year ending April 2024 cites a 0.5 percent fraud rate due to claimant error, 0.3 percent due to official error, and a 0.8 percent overpayment rate. The minister noted these numbers "only provide an estimate" for actual fraudulent cases.
Crunching the numbers based on the estimated 3.5 million individuals receiving PIP at the end of July 2024, it appears there are about 17,500 fraudulent claims due to claimant error, another 10,500 through mistakes on the part of officials, and about 28,000 from overpayments. PIP delivers vital aid to people who live with a persistent health condition or disability.
The payment is split into a daily living and a mobility component, with payment rates determined by the needs of the recipient. Current weekly payments include £72.65 for the lower daily living rate and £108.55 for the upper rate; while mobility payments ranges from £28.70 for the lower rate to £75.75 for the higher amount.
Benefit fraud has been in the news recently with new rules on the horizon that will allow DWP officials to look at details of suspects' bank accounts. The new measures include powers for home raids and seizing assets when suspected organised criminals are taking advantage of the benefits system.
Financial expert and senior contributor at Bountii, Yiannis Zourmpanos, has voiced his concerns about the new policy, particularly over privacy. He said: "The idea that the Government can peer into your bank account feels invasive, and I understand why. From a financial perspective, this kind of oversight raises ethical issues."
But he acknowledged the importance of making sure benefit payments only go out to the right people, explaining: "But remember, it’s also a balancing act. The DWP is trying to ensure that public funds are being properly allocated, and they’re arguing that the level of fraud demands a tougher stance."
Mr Zourmpanos also pointed to the concern that innocent people could be needlessly targeted. He said: "I’ve had clients before who were questioned about receiving financial help from family members, and while everything was legitimate, it still took time and effort to clear things up."
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