The Department for Work and Pensions (DWP) has confirmed that individuals who promote or assist benefit fraud could face up to 10 years in prison under existing legislation. The clarification follows a parliamentary challenge from Newcastle MP Chi Onwurah.
Chi Onwurah, Labour MP for Newcastle upon Tyne Central and West, asked the DWP whether content advising people to misrepresent health conditions for financial gain is addressed under existing legislation. The DWP responded in a parliamentary update published on Monday.
Fraud Act 2006 penalties
Lilian Greenwood, Parliamentary Under-Secretary at the DWP, said in the response: "The unscrupulous people who actively try to promote, encourage, or assist in fraud must not be tolerated and these people must face consequences."
She added: "Offences under the Fraud Act 2006 can carry a maximum sentence of up to 10 years' imprisonment. This includes offences such as making or supplying articles for use in fraud, including electronic materials where the person knows or intends that the information will be used to commit fraud – for example, the deliberate sale or distribution of fraud instruction manuals online."
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. Under the Online Safety Act 2023, social media companies now have a legal duty to remove illegal content, including fraudulent material.
Scale of benefit fraud
The government said benefit overpayments in 2026 totalled £9.9 billion, with fraud accounting for 2.2 per cent of that figure. Large sums are lost annually through fraudulent claims for benefits including Universal Credit, the state pension, PIP, housing benefit, pension credit and Disability Living Allowance.
This week, the DWP introduced new rules requiring banks to share information to assist in verifying individuals' benefit entitlements.
Consequences of benefit fraud
According to gov.uk, a person is committing fraud by claiming benefits they are not entitled to deliberately, for example by submitting false information. If under suspicion, individuals may be contacted by the DWP, HMRC, their local council or the Defence Business Services.
Benefit payments may be suspended during an investigation, and Fraud Investigation Officers may visit claimants at home or require them to attend an interview under caution. If fraud is concluded, individuals may have to repay overpaid funds, face court proceedings, or be issued with a penalty ranging from £300 to £5,000.
Benefits could 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 Universal Credit, Pension Credit, Housing Benefit, Jobseeker's Allowance, Employment and Support Allowance, and several other allowances.
