What are the red flags DWP are investigating for benefit fraud?

Millions of pounds are reportedly being lost to benefit fraudsters every year, according to the Department for Work and Pensions' (DWP) calculations, with crackdowns around eligibility now putting pressure on claimants to prove they deserve their payments.

For the financial year ending 2024, 3.7 per cent (£9.7 billion) of total benefit expenditure was overpaid due to fraud and error, DWP figures show.

In a crackdown on this under the Fraud, Error and Debt Bill investigators will have new powers including requiring banks and financial institutions to share data that may show indications of potential benefit overpayments - including highlighting savings.

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However, while claimants might feel like they're being watched, the DWP only has so much surveillance capacity and even less when you aren't actively being investigated, LeicestershireLive reports.

Claimants will be alerted if they're suspected of benefit fraud relatively soon after the suspicions are reported. Occasionally, the department may perform a randomised check.

Currently, a person will be contacted by either the DWP, HMRC, Defence Business Services or their local authority depending on the type of benefits you claim and the severity of the accusations being investigated. Due to investigation procedures, your benefits may be stopped while it is underway but you will receive a letter explaining this if applicable.

If you struggle to make ends meet during the investigation if your benefits are stopped, Citizen's Advice suggests finding an adviser who can tell you what type of payments you could be eligible for. Suspected benefit fraudsters may be visited by a Fraud Investigations Officer or asked to attend an 'interview under caution', which is usually recorded and can be used in a criminal investigation.

Both of these are fact-gathering missions to help learn more about your case. You can get advice on your case from a legal advisor, solicitor or Citizen's Advice. Investigations usually last for a few months, according to JD Solicitors, but the experts noted some extreme cases can take a couple of years while others only last a few weeks at most.

Citizen's Advice highlighted that having your benefits stopped, being asked to confirm things or other things that may seem to be signs that you're under investigation doesn't always mean this is the case. The DWP also routinely checks to ensure benefit claimants are receiving the correct amount.

The DWP is also being granted a new power forcing financial institutions to co-operate with investigations by providing minimal information about claimants. It does not allow them direct access to see bank accounts of claimants but rather requests the bank to give limited information to verify the account holders eligibility for benefits.

You may also request information directly from you such as lifestyle changes that may have affected your benefits. You may be requested to provide proof of this, for example through a doctors letter for those trying to prove their condition hasn't changed or bills highlighting who is living in the household. People claiming Universal Credit might be asked to provide copies of their passport, tenancy agreement or photos of themselves in front of their home.

For more information on what happens if a person is suspected of carrying out benefit fraud click here.