The Department for Work and Pensions (DWP) is turning its attention to fraud and error in Pension Credit after making significant progress in reducing losses in Universal Credit, its permanent secretary has told MPs.
Peter Schofield appeared before the Work and Pensions Committee on Wednesday to discuss the department's anti-fraud efforts. He outlined new measures, including the Eligibility Verification Measure, which allows bank account checks to confirm benefit claimants' eligibility. The legislation also grants investigators the power to recover overpayments directly from bank accounts where money is owed and refusal to repay persists.
Mr Schofield said the biggest areas of fraud and error in Pension Credit relate to capital and claims from people living abroad longer than permitted. Capital fraud involves claimants giving a false picture of their savings or failing to report them. For Pension Credit, savings and investments above £10,000 start to reduce entitlement, with each £500 over this threshold counting as £1 a week in income. The benefit tops up income to £227.10 a week for single claimants or £346.60 for couples.
The DWP is also targeting similar issues in Universal Credit, where savings between £6,000 and £16,000 reduce monthly payments by £4.35 for every £250 held. Mr Schofield said the department can access bank information through open banking and new laws allow data sharing with banks to tackle capital fraud. He added that HMRC data on earnings is used through the same channel employed for Carer's Allowance, and the new measure can identify transactions made abroad.
Mr Schofield confirmed that a targeted case review is under way for Pension Credit, building on improvements already achieved in Universal Credit. He encouraged claimants to notify the DWP of changes in circumstances to keep payments accurate.
