DWP update on rules over contacting neighbours in benefit fraud probes

The Department for Work and Pensions (DWP) has shed light on whether investigators might chat to a claimant's neighbours during a benefit fraud probe. The revelation emerged following a Freedom of Information (FOI) request which also questioned the use of video surveillance by neighboursin such investigations.

The DWP, tasked with doling out State Pension and welfare benefits, supports roughly 22.7 million individuals across Great Britain. Fresh figures from the 2024 Fraud and Error in the Benefit System report suggest that overpayments due to benefit fraud have surged to £9.7 billion (3.7%), up from £8.3 billion the previous year.

Benefit fraud typically involves people claiming unemployment benefits whilst employed or falsely stating they live alone without financial backing from a partner or spouse. Failing to report a 'change of circumstances' to the DWP, such as a partner moving in, changing address, or receiving an inheritance, could be seen as 'fraud by omission'.

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While DWP investigators possess broad powers, the FOI response revealed that the decision to "contact a neighbour of a suspect depends on the circumstances of each case", according to the Daily Record. Nevertheless, the document goes on to clarify: "During a DWP investigation we would not routinely seek information from a neighbour. There may be exceptional circumstances where they may provide a witness statement as investigators are required by law to pursue all reasonable lines of enquiry whether these point towards or away from a suspect."

The DWP emphasised that the aim of any criminal investigation is to collect evidence that either supports or disproves whether a crime has been committed against the state and/or local authority, in order to identify the perpetrator. The DWP said neighbours would never be requested to carry out video surveillance on a suspect, stating: "this would not happen".

They noted: "DWP carry out their own surveillance following strict guidelines laid down within the Regulation of Investigatory Powers Act 2000."

DWP fraud and error review

In the current financial year, the department will examine a selection of claims from six specific benefits, as part of its continuing programme designed to identify fraud and error

The benefits under examination in this drive to spot fraud and error are:

• Universal Credit
• Housing Benefit (pension age, passported cases)
• Pension Credit
• State Pension
• Personal Independence Payment (PIP)
• Carer’s Allowance

Examples of benefit fraud

• faking an illness or injury to get unemployment or disability benefits
• failing to report income from a business or employment to make income seem lower than it actually is
• living with someone who contributes to the household income without declaring that income to the authorities
• falsifying accounts to make it seem like a person has less money than they say they do

In each instance, the DWP requires proof that someone is receiving a benefit (such as Tax Credits or other benefits payments) that they would not typically be eligible for. Fraud investigators have a wide range of powers that allow them to gather evidence in various ways, including surveillance, interviews, and document tracking.

These powers will broaden under new proposals to include executing warrants, searching and seizing evidence, and even making arrests. Unfortunately, you won't know the exact details of an investigation against you until you are informed about it afterwards - which could be in court if you are charged with a crime. There's a common misconception that only those who are openly defrauding the system are investigated for benefits fraud and other offences involving the DWP.

While the DWP does respond to public reports, it also has its own sophisticated methods of detecting potential fraudulent activity - meaning anyone receiving benefits from the DWP could be investigated at any time.

What happens during a DWP investigation?

If the Department for Work and Pensions (DWP) decides to launch a formal investigation against you, they will notify you either by post, phone call or email. This notification will also let you know whether a Fraud Investigation Officer (FIO) will be paying you a visit or if you need to attend an interview.

In the early stages of an investigation, you might not be informed until the DWP has established whether there's a valid reason to formally investigate a potential fraud case.

A large number of reports and tip-offs turn out to be false, so the DWP aims to ensure that they don't waste their resources on a pointless investigation. As soon as there's enough evidence of potential fraud, the DWP will kick off an official investigation and inform you, they say.

DWP investigators are allowed to gather various types of evidence against a potentially fraudulent claimant.

Most common types of evidence in DWP benefit fraud cases

One common form of benefit fraud is falsely reporting income, or not reporting it at all. If you're claiming unemployment benefits but are seen going to a workplace, the DWP may have a conversation with the owner or manager of that business to find out why you're there, what work you're doing and how much you're earning.

Investigators may also delve into your social media accounts, hunting for photos, location tags, and other potential evidence. Regular social media users often leave a digital trail of their lifestyle and habits, which can assist investigators in piecing together an accurate picture of their life.

If this doesn't match with the details provided in their benefits claim, it could be used as evidence against them.

What happens if you're wrongly reported to the DWP?

False allegations of benefit fraud are not rare in the UK, with some research suggesting around 140,000 such reports are made each year. Until the DWP concludes there's no case against you, there's little you can do.

Co-operate as much as possible and remember that those found to have made false reports out of spite may face prosecution. If you're concerned about a current or future DWP investigation against you or someone you know, seeking advice from a legal expert could be beneficial.

Citizens Advice may also provide free and impartial advice. You can contact them here.