DWP red flags that show you're being investigated for benefit fraud and what they can see

The DWP has a number of powers available to it

According to the Department for Work and Pensions' own figures, millions of pounds are lost annually to benefit fraudsters. This has led to increased scrutiny around eligibility, putting pressure on some claimants to prove their entitlement to payments.

Despite this, the DWP's surveillance capacity is limited, especially when a claimant isn't actively under investigation. If suspicions of benefit fraud arise, claimants are usually alerted relatively quickly, often triggering an investigation.

On rare occasions, the department may conduct a random check. For the financial year ending 2024, DWP data reveals that 3.7% (£9.7 billion) of total benefit expenditure was overpaid due to fraud and error.

The Fraud, Error and Debt Bill aims to tackle this issue by granting investigators new powers, such as requiring banks and financial institutions to share data that could indicate potential benefit overpayments, including highlighting savings. Until these measures are implemented, under the current system, a person suspected of fraud will be contacted by either the DWP, HMRC, Defence Business Services or their local authority, depending on the type of benefits claimed and the seriousness of the allegations.

During the investigation process, benefits may be temporarily halted, with a letter sent to explain this if necessary, reports Leicestershire Live.

If you're grappling with financial hardship while your benefits are under scrutiny and potentially halted, Citizen's Advice advises seeking out an adviser to explore your options for alternative financial support. Those suspected of benefit fraud may encounter a visit from a Fraud Investigations Officer or be summoned for an "interview under caution", which can be used in subsequent legal proceedings and is aimed at gathering more details about the individual’s circumstances.

Legal advice for these matters is available from solicitors or Citizen’s Advice. The length of investigations typically spans several months, say JD Solicitors, although this can extend up to years in complex cases, or conclude within weeks for simpler ones.

Importantly, Citizen’s Advice points out that interruption in benefits or requests for information do not always indicate an ongoing investigation. Regular checks by the DWP are a routine part of their process to confirm claimants receive the appropriate benefits they're entitled to.

A fresh legislative change empowers the DWP to demand certain account information from banks as part of its probes, intending to verify eligibility without directly accessing bank accounts.

You may also be asked to provide information about any lifestyle changes that could have impacted your benefits. Proof of these changes, such as a doctor's letter confirming that your condition hasn't changed, or bills showing who resides in your household, may be required.

Those claiming Universal Credit might need to supply copies of their passport, tenancy agreement, or even photos of themselves outside their home. For more details on the process if someone is suspected of benefit fraud, click here.