The Department of Work and Pensions (DWP) has been accused of 'shocking levels of fraud' after staff allegedly pocketed £600,000 from the most vulnerable claimants, including the unemployed, disabled, and pensioners. The internal fraud incidents were reported over the 2025-26 period, with the total losses down from £1.7 million the previous year.
Former Minister Condemns 'Shocking' Theft
Former pensions minister Ros Altmann criticised the department, calling it 'shocking' that DWP employees were allegedly 'diverting hard-earned taxpayer money away from people needing help from the DWP.' She urged the department to 'get its house in order.'
40 Internal Investigations Launched
The DWP confirmed 40 internal investigations into benefits-related staff fraud in 2025-26, leading to losses of £612,715. The department stated it is cooperating with authorities on a case-by-case basis and that some employees have been dismissed. In one case, an employee faced a criminal investigation after verifying multiple benefit claims with 'no evidence to support them.'
Previous Cases Highlight Pattern
A former DWP staffer was sentenced to eight months in prison for stealing thousands in carer's allowance and winter fuel payments. In another incident, a woman from Liverpool received a suspended sentence for diverting 20 Employment and Support Allowance (ESA) payments totalling £7,600 into her own bank account, claiming she used the money to fuel a gambling addiction.
DWP Responds
A DWP spokesperson said: 'Anybody caught abusing their position to fraudulently claim taxpayers’ money will be held to account with the full force of the law.' The department has not confirmed details of any active criminal investigations.
