The Department for Work and Pensions (DWP) has warned that unscrupulous individuals who encourage or assist benefit fraud could face up to 10 years in prison under the Fraud Act 2006. The warning came in response to a parliamentary question about content that advises people to misrepresent health conditions for financial gain.
Parliamentary Question on Fraudulent Content
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 department responded that it had interpreted the question as referring to content that may encourage individuals to misrepresent their health conditions to obtain welfare benefits to which they are not entitled.
In a response issued on Monday, Lilian Greenwood, Parliamentary Under-Secretary at the DWP, said: "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 that offences under the Fraud Act 2006 can carry a maximum sentence of up to 10 years' imprisonment.
Legal Powers and Online Monitoring
Greenwood explained that the Fraud Act covers 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. This includes the deliberate sale or distribution of fraud instruction manuals online.
The DWP works with partners including Action Fraud, the City of London Police and the National Cyber Security Centre to prevent fraudulent activity online, and DWP monitors social media platforms regularly. Additionally, Ofcom's first Online Safety Codes of Practice sets out an expectation that large services at medium or high risk of fraud provide DWP with access to a dedicated channel for reporting fraud. Under the Online Safety Act 2023, social media companies now have a legal duty to remove illegal content, including fraudulent material.
Section 7 of the Fraud Act 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.
Benefit Fraud Penalties
Benefit overpayments in 2026 were £9.9 billion, with fraud making up 2.2 per cent of that, according to the government. This week, the DWP changed the rules to require banks to share information to help check someone's benefit entitlement.
According to the gov.uk website, a person is committing fraud by claiming benefits they are not entitled to on purpose, for instance by providing false information. If suspected, the person will be contacted by the DWP, HMRC, their local council or the Defence Business Services. Benefits may be halted while the issue is investigated, and the person may be visited by Fraud Investigation Officers or asked to attend an interview under caution.
If fraud is proven, penalties can include paying back overpaid money, being taken to court, or paying a penalty of between £300 and £5,000. Benefits could be reduced or stopped for up to 3 years if convicted of benefit fraud. The benefits advice website Turn2Us advises people to seek legal assistance as soon as possible if they are facing prosecution.
The benefits that can be lowered or cut off include Universal Credit, Pension Credit, Housing Benefit, Jobseeker's Allowance, Carer's Allowance, Incapacity Benefit, Employment and Support Allowance, and several industrial injuries and war pension allowances.
