Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make it her policy to (a) replace new Universal Credit claim (i) advance and (ii) benefit transfer loans with new claim grants and (b) to write off overpayments made in error.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
As not all new UC customers require the same level of immediate support, replacing every new customer’s advance with a UC grant would lead to significantly increased expenditure and the potential for increased fraud and error in the social security system.
We are committed to reviewing Universal Credit, to make sure it is doing the job we want it to. We will set out the details of this in due course.
The Secretary of State has an obligation to protect public funds and to ensure that, wherever possible, an overpayment is recovered. It is our policy to recover all debt where it is reasonable and cost effective to do so. Debts should be recovered as quickly and cost effectively as possible without causing undue financial hardship.
There are no plans to write off overpayments made in error.
Asked by: James McMurdock (Reform UK - South Basildon and East Thurrock)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether her Department plans to conduct a public consultation on the proposed powers for her Department's investigators to scrutinise benefit claimants’ bank accounts.
Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)
Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money. This Government will reduce these levels to stop those looking to defraud the system and reduce the risk of individuals building up large overpayments.
The Eligibility Verification Measure, which will allow banks and financial institutions to share limited information with the DWP to help verify benefit eligibility, has been proposed after extensive consideration and policy development as the most effective way to prevent incorrect payments and crucially, help prevent debts accruing for claimants. As the National Audit Office pointed out, access to data is key to prevention and detection of incorrect payments.
The Eligibility Verification Measure will not give DWP powers to access anyone’s bank accounts, nor any information on how claimants spend their money. Claimants fulfilling their responsibilities by promptly and accurately reporting any changes in their circumstances will not be impacted by these changes.
We will ensure that these powers are proportionate by setting out key safeguards, reporting mechanisms and independent oversight, to give greater confidence to claimants that the powers are being used fairly and effectively.
We will rely on Codes of Practice where they already exist and, where they do not, we will consult on and produce new Codes of Practice to provide further reassurance on the safe use of the powers.
Further details will be set out when the Bill is introduced to Parliament.
Dec. 02 2024
Source Page: Birmingham fireworks trader jailed after forging documents to pocket Covid loan and company fundsFound: Khan, of Trafalgar Road, Moseley, Birmingham, pleaded guilty to fraud, forgery and insolvency offences
Mentions:
1: Rebecca Smith (Con - South West Devon) This will bring benefit fraud investigations into line with tax fraud investigations in His Majesty’s - Speech Link
2: David Pinto-Duschinsky (Lab - Hendon) post covid, fraud volumes and losses in the financial services sector, including credit card fraud, - Speech Link
3: Sarah Olney (LD - Richmond Park) I believe that fraud must be rooted out and that more should be done to prevent fraud from happening - Speech Link
4: Andrew Western (Lab - Stretford and Urmston) Fraud is already an offence under the Fraud Act 2006, and the common law offence of conspiracy to defraud - Speech Link
5: Liz Kendall (Lab - Leicester West) It also makes vital upgrades to the DWP’s fraud powers and sets out new powers to investigate fraud, - Speech Link
Mentions:
1: Liz Kendall (Lab - Leicester West) That includes fraud against our public services, such as by those who abuse the tax system; fraud by - Speech Link
2: Liz Kendall (Lab - Leicester West) Authority to investigate fraud. - Speech Link
3: Helen Whately (Con - Faversham and Mid Kent) fraud like tax fraud and giving investigators new powers to make seizures and arrests. - Speech Link
4: Oliver Ryan (LAB - Burnley) Benefit fraud has tripled since 2019, and since then we have lost almost £10 billion overall to fraud - Speech Link
5: Jo White (Lab - Bassetlaw) This Bill is all about fraud. - Speech Link
Mar. 26 2025
Source Page: College accounts directionFound: Where the corporation/designated institution has written off debts and losses, entered into guarantees
Found: fraud and waste 18 1.2 Public sector fraud: clauses 1 & 2 19 1.3 Investigatory powers 21 Rationale
Found: fraud and waste 18 1.2 Public sector fraud: clauses 1 & 2 19 1.3 Investigatory powers 21 Rationale
Sep. 11 2024
Source Page: Electrician who fraudulently secured Covid loans to pay-off personal debts ordered to repay £56,000 or go to jailFound: Stanislav Genadiev used the funds from two £50,000 Covid Bounce Back Loans to pay off his own personal debts
Mar. 18 2025
Source Page: Public Sector ToolkitsFound: people while protecting taxpayers’ money by taking a proportionate response to those who can repay debts