How to tell DWP could be investigating you - the tell-tale signs

The DWP has been given new powers to investigate people it suspects of claiming benefits illegally

According to the Department for Work and Pensions' own figures, millions of pounds are lost annually to benefit fraudsters. This has led to increased scrutiny around eligibility, putting pressure on some individuals to prove their entitlement to payments.

Despite this, the DWP's surveillance capacity is limited, especially when a claimant isn't actively under investigation. Typically, claimants suspected of benefit fraud will be notified shortly after suspicions are reported, often triggering an investigation.

On rare occasions, the department may conduct a random check. For the financial year ending 2024, DWP data reveals that 3.7% (£9.7 billion) of total benefit expenditure was overpaid due to fraud and error.

In response to this, the Fraud, Error and Debt Bill will grant investigators new powers, including the ability to require banks and financial institutions to share data that could indicate potential benefit overpayments, such as highlighting savings. Until these measures are implemented, under the current system, a person will be contacted by either the DWP, HMRC, Defence Business Services or their local authority, depending on the type of benefits claimed and the seriousness of the allegations being investigated.

As part of the investigation process, benefits may be temporarily halted, but recipients will receive a letter explaining this if it applies, reports Leicestershire Live.

Citizen's Advice suggests if you find yourself in financial hardship during an inquiry into your benefits, you should seek out an adviser for information on potential entitlements. Individuals under suspicion of benefit fraud might be visited by a Fraud Investigations Officer or be required to attend an "interview under caution", which is often taped and may contribute to a criminal case.

The purpose of these actions is to gather details pertinent to the individual's situation. It is also advisable to consult with legal professionals or Citizen's Advice regarding one's case.

The duration of investigations can vary considerably; JD Solicitors state that while some may persist for several months, others could resolve in just a few weeks. However, Citizen's Advice points out that interruptions in benefit payments or requests for information do not necessarily confirm an ongoing investigation as the DWP routinely conducts checks to ensure claimants are receiving appropriate benefits.

Moreover, new legislation is set to empower the DWP by obliging financial institutions to aid in inquiries by supplying necessary claimant information, albeit without granting the DWP direct access to look into bank accounts.

You may also be asked to provide information about any lifestyle changes that could have impacted your benefits. Proof of these changes, such as a doctor's letter confirming that your condition hasn't changed or bills showing who resides in your household, may be required.

Those claiming Universal Credit might need to supply copies of their passport, tenancy agreement or even photos of themselves outside their home. For more details on the procedure if someone is suspected of committing benefit fraud, click here.