The UK government has declared war on a multi-million-pound fraud scheme, launching a powerful new crackdown on families illicitly claiming British child benefits for children who live permanently abroad.
In a significant move to protect taxpayers, Work and Pensions Secretary Mel Stride is set to unveil sweeping new powers that will allow authorities to aggressively investigate and halt these fraudulent claims. The initiative specifically targets what has been dubbed the 'milk round' fraud, where benefits are claimed for children not residing in the UK.
The heart of the new strategy lies in enhanced international data-sharing agreements. The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will now work directly with other governments to swiftly identify and cross-reference claims, instantly flagging discrepancies for children living overseas.
Closing the Loopholes
This crackdown zeroes in on a significant loophole previously exploited by fraudsters. Currently, to qualify for child benefit, a claimant must be legally residing in the UK and have a 'right to reside'. The payments are intended to help with the cost of raising children within the country.
However, the system has been vulnerable to abuse from individuals claiming for children who are not genuinely living with them in Britain. The new data-sharing measures are designed to slam this loophole shut, ensuring only those who are legally entitled receive the support.
A Message to Fraudsters
Mel Stride is expected to deliver a stern warning to those attempting to cheat the system: 'We are tightening the net on those who think they can rip off the British taxpayer. If you are claiming benefits for children who aren't living here, you will be caught, and you will be made to pay it back.'
This robust approach forms a key part of the government's wider strategy to reduce benefit fraud, error, and debt, aiming to save an astounding £9 billion of taxpayers' money by the end of the next parliamentary term.
The move has been welcomed as a necessary step to ensure the sustainability of the welfare state and to guarantee that financial support reaches the families and children within the UK who need it most.
