Universal Credit Fraud a Goldmine For Scammers

CRIME – Universal Credit Fraud has skyrocketed.

The number of Universal Credit frauds cases more than doubled in three months, the Department for Work and Pensions permanent secretary Peter Schofield has revealed to a group of MPs. 

Image: DWP Permanent Secretary Peter Schofield.

The scam is believed to have totalled £20 million, with as many as 10,000 cases happening every month.

Many phoney claims are using obviously fake names.

The scam first emerged in May 2019 when a young mum from the Midlands fell victim to it, prompting police to issue a warning.

The number of reported cases rocketed from 42,000 cases in Universal Credit’s six-year history in July to 85,000 this month, Peter Scholdfield told the work and pensions committee. 

Chair of the committee Frank Field told the MPs that the fraud, related to advance payment loans, was wide-spread. 

“We've got [on average] 140 of our constituents who will be making up that total,” Field said. “This is a very, very serious fraud.”

The scams involve fraudsters contacting people eligible for Universal Credit and getting them to apply for an advance - or making the application on their behalf. UC applicants can apply for an advance - financial assistance - if they need it during the initial five-week wait for the combined benefits. 

The applicants then split the money with the scammers.

Media reports have suggested some of the claimants were not aware they had to pay the government the advance back over a 12-month period.

Image: Labour MP for High Peak in Derbyshire Ruth George.

Labour MP for High Peak in Derbyshire Ruth George told Schofield at the committee that in all cases she was aware of in her constituency the individuals had been “duped”.

She said: “They have been told they are applying for a loan; they have given their details to someone who said they were applying for a loan; they have had someone looking like an official with a DWP badge turn up at their house and take their details from them.

“These are not people who have knowingly made a claim for Universal Credit themselves of their own volition.”

She said one family in her constituency with several children was £120 a week worse off.

Schofield said there was a “dedicated team” looking into each case and in some circumstances, people will be moved back to the old benefits system, although the criteria for being taken off Universal Credit again were “quite narrow”.

ABC Note: The Permanent Secretary is the head of the department, responsible for the effectiveness and efficiency of the department’s work and its spending. They are also responsible for the leadership, management and staffing of the department

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