The Department for Work and Pensions (DWP) has confirmed that people who promote or assist benefit fraud could face up to 10 years in prison. The warning came after Newcastle MP Chi Onwurah pressed the department to clarify how existing legislation applies to content that encourages people to misrepresent their health conditions for financial gain.
MP challenges DWP over fraud guidance
Chi Onwurah, Labour MP for Newcastle upon Tyne Central and West, asked the DWP whether "content advising people to represent health conditions incorrectly for financial gain is addressed under existing legislation". The question followed growing attention on social media to the issue.
In a written response published on Monday, Lilian Greenwood, Parliamentary Under-Secretary at the DWP, said the question had been interpreted as referring to content that may encourage individuals to misrepresent their health conditions to obtain welfare benefits to which they are not entitled.
Penalties under the Fraud Act 2006
Greenwood said: "The unscrupulous people who actively try to promote, encourage, or assist in fraud must not be tolerated and these people must face consequences." Offences under the Fraud Act 2006 can carry a maximum sentence of up to 10 years' imprisonment, including making or supplying articles for use in fraud, such as the deliberate sale or distribution of fraud instruction manuals online.
Section 7 of the Fraud Act sets out the legal position on the issue raised by the MP. It states that a person is guilty of an offence "if he makes, adapts, supplies or offers to supply any article knowing that it is designed or adapted for use in the course of or in connection with fraud, or intending it to be used to commit, or assist in the commission of, fraud."
Government action and existing rules
The DWP said it already works with partners including Action Fraud, the City of London Police and the National Cyber Security Centre to prevent fraudulent activity online, and that it monitors social media platforms regularly. The department also noted that Ofcom's first Online Safety Codes of Practice expects large services at medium or high risk of fraud to provide DWP with access to a dedicated channel for reporting fraud. Under the Online Safety Act 2023, social media companies have a legal duty to remove illegal content, including fraudulent material.
The government says benefit overpayments in 2026 totalled £9.9 billion, with fraud accounting for 2.2 per cent of that figure. This week, the DWP introduced new rules requiring banks to share information to assist in verifying individuals' benefit entitlements.
Consequences for benefit fraud
According to the government website gov.uk, a person is committing fraud by claiming benefits they are not entitled to deliberately, for example by submitting false information. Those under suspicion may be contacted by the DWP, HMRC, their local council or the Defence Business Services, and benefit payments may be suspended while the matter is under investigation.
Fraud Investigation Officers may visit a person at home or require them to attend an interview under caution. If fraud is proven, a person may be required to repay any overpaid funds, face court proceedings, or be issued with a penalty ranging from £300 to £5,000. Benefits could also be reduced or stopped for up to 3 years if a person is convicted of benefit fraud.
The benefits advice website Turn2Us advises people to seek legal assistance as soon as possible if they are facing prosecution. Benefits that can be lowered or cut off include Carer's Allowance, Housing Benefit, Jobseeker's Allowance, Pension Credit, Universal Credit, Employment and Support Allowance, and Incapacity Benefit, among others.
