DWP are checking your bank account for these 7 things as part of fraud investigations

The Department for Work and Pensions (DWP) is currently clamping down on overpaid benefits and fraud.

There are over 23 million people in the UK currently receiving benefits from the DWP - with 12.4 million State Pension claimants, nearly 6 million people claiming Universal Credit, approximately 2.7 million getting Personal Independence Payment, and 1.8 million who receive Employment and Support Allowance.

The DWP reported recently that it noticed a large increase in benefits fraud and errors across the pandemic, revealing that as much as £8.4 billion might have been overpaid in the 2020/21 financial year.

READ MORE - Scottish couple on 'dream holiday' fall seriously ill on Covid-hit cruise ship

As reported by Birmingham Live, the government department has gauged that 3.9% of all of its benefits spending last year was overpaid, with over £6 of that being due to fraudulent claims - namely those involving Universal Credit.

Neil Couling, director-general of Universal Credit, revealed that potentially thousands of people who claimed benefits could be contacted over the next few months.

Investigators from the DWP might show up at your home or place of work if they suspect you of fraud.

They also use a wide range of powers to gather evidence such as surveillance, document tracing, interviews, checking your bank accounts and monitoring your social media.

The DWP said: "In simple terms an overpayment is benefit that the claimant has received but is not entitled to.

"Overpayments of benefit can occur in a number of ways. In the main they are due to claimant, system or official error."

And it has outlined seven types of overpayments it looks for:

1. mistake by the claimant (non-disclosure of circumstances or incomplete form)
2. deliberate fraud by the claimant (failing to disclose a material fact or deliberate misrepresentation)
3. interim and advance payments including short term benefit advance that could not be recovered from the benefit for which they were paid
4. Universal Credit recoverable hardship payments (classed as an overpayment for recovery purposes if recovery can no longer be taken from the benefit that was in place at the time of payment)
5. overpayment due to late award of other benefit/income
6. overpayments due to the way in which the Direct Payment banking system operates
7. official error – only applies to Universal Credit and contributory Jobseeker’s Allowance and Employment and Support Allowance claims made on or after April 29, 2013

In each of those cases, it can make efforts to get the money back under Social Security legislation.

You may be taken to court where a fine of up to £5,000 can be imposed. A person's benefits can be cut for up to three years if they are convicted of benefit fraud.

A DWP spokesman said: "We take any abuse of taxpayers' money very seriously and those who claim benefits they are not entitled to will face criminal prosecution.

"We also have robust plans in place to recover fraudulent claims and drive fraud and error down to the lowest feasible level."