Benefits fraudsters are costing UK taxpayers an estimated £4.3million every week by claiming welfare while living abroad, a new investigation has found. Official Department for Work and Pensions (DWP) estimates show £226million was lost to overseas-based benefit fraud in the year to March alone.
Breakdown of fraudulent claims
The largest loss comes from bogus Universal Credit claims, which account for £103million. A further £67million was taken through Pension Credit, while £29million in Housing Benefit and £27million in Personal Independence Payments (PIP) were wrongly paid to people living abroad, according to an analysis by The Sun on Sunday.
Additionally, around 2,000 people are legally drawing PIP while residing overseas full-time due to treaty arrangements with European Economic Area (EEA) nations.
Rules and calls for crackdown
Under current rules, claimants must inform the DWP if they leave the UK for an extended period. Brits can stay on benefits such as PIP for up to 13 weeks while abroad, but longer absences require notification so payments can be paused.
Former Tory leader Sir Iain Duncan Smith called for the return of mandatory face-to-face meetings, saying: “People on benefits like Universal Credit should be looking for work.”
A DWP spokesman said: “We’re determined to crack down on fraud. Our latest figures show us fraud and error has fallen by a quarter since its 2022 peak. We will leave no stone unturned.”
The £226million overseas fraud is part of a larger problem, with total benefit overpayments due to fraud and error across the UK estimated at £8.4billion to £9.5billion a year, according to a Committee of Public Accounts report.
