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DWP Annual Report Shows Staff Diverted £1.7 Million in Benefits Intended for Vulnerable Claimants

Department officials will pursue prosecutions; strengthen internal controls; reinforce oversight to reassure critics demanding greater accountability.

More than £1.7m has been lost due to benefits fraud among DWP staff
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Overview

  • The government’s internal fraud team conducted 25 investigations into benefits-related fraud by DWP employees and contractors between April 2024 and March 2025.
  • Since 2020, more than £6 million meant for pensioners, disabled people and carers has been siphoned off by staff, with 2024–25 marking the highest annual loss to date.
  • Ongoing criminal proceedings target dismissed employees accused of approving unfounded claims and abusing customer ID verification processes.
  • Baroness Ros Altmann and the Taxpayers’ Alliance have urged the DWP to impose tougher sanctions and increase transparency to protect public funds.
  • In January 2025, the government introduced the Public Authorities (Fraud, Error and Recovery) Bill to enhance recovery of welfare fraud losses and reinforce DWP oversight.