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Daily Mirror
Daily Mirror
Politics
Dan Bloom

DWP fraud victims could be taken back off Universal Credit after massive scam

Universal Credit claimants could be taken back OFF the benefit after falling victim to a "multi-million pound" scam.

A Tory minister has revealed some people may be moved back to the old welfare system after "parasites" signed them up unwittingly to six-in-one benefit UC.

A BBC investigation this week revealed fraudsters have approached struggling families and offered to get them cash from the Department for Work and Pensions (DWP).

They split the money, but claimants then discover it is only an advance loan - which has to be paid back to the DWP in full.

Jade Thomas, 31, from Manchester, told the BBC she owes the DWP more than £1,500 after she was conned by a fraudster.

The BBC reported tens of millions of pounds of public money is believed to have been stolen in the scam, which accounted for more than a third of claims in one Jobcentre.

One woman told the BBC she owes the DWP more than £1,500 (PA)

Tory ministers were slammed today for opening up "a bonanza for crooks and fraudsters" that let scammers register family members in the name of Simpsons characters.

Shadow Work and Pensions Secretary Margaret Greenwood said fraud in Universal Credit is "far higher" than under other benefits, adding: "How is it that advances have been made to claimants with names such as Lisa Simpson, Bart Simpson and Homer Simpson?"

Labour MP Melanie Onn added: "I think the general public will be incredulous at the level of incompetence around the Universal credit system.

"How can it be possible that a brand new system is open to grotesque fraud as has been revealed this wekk.

"Is the minister seriously expecting us to accept that the Bank of Springfield is somehow an acceptable system that Universal Credit recognises?"

"How is it that advances have been made to claimants with names such as Lisa Simpson, Bart Simpson and Homer Simpson?" (Fox)

Attempting to reassure MPs, DWP minister Justin Tomlinson revealed not only will victims be repaid - they could be moved back onto the old system.

He said: "Every individual will be treated individually and we will look at their unique circumstances.

"Where it is clear they have been a victim of fraud through no fault of their own then yes we would expect them to be paid back.

"And yes we would look at considering putting them back onto the legacy benefits if they were better off under those."

Despite the pledge, even if people are moved back on to legacy benefits they would only stay on them for a few years at most.

Benefit claimants are due to be formally "migrated" to UC between summer 2021 and the end of 2023.

And Mr Tomlinson defended UC, claiming the old system "trapped people in generations of unemployment".

Even if people are moved back on to legacy benefits they would only stay on them for a few years (UIG via Getty Images)

Mr Tomlinson confirmed DWP staff had referred 42,000 potential fraud cases under Universal Credit since the system was introduced in 2013.

But he insisted this was less than 1% of the total 4.4 million claims.

And he said the DWP had already secured a conviction in relation to the scam, which it knew about before the BBC report.

Mr Tomlinson said those committing the fraud are "parasites targeting some of the most vulnerable people in society".

He added: "I can give this House the assurance that the department will be doing everything within its power to protect the vulnerable people in society."

SNP MP Neil Gray asked an urgent question in the Commons after it emerged that criminals have been exploiting a loophole in the online claims system.

Mr Gray said people are "desperately needing help" because of the "alarming and heartbreaking" fraud.

He said people had been "driven unwittingly to criminals to help them get the money they need to survive", adding: "They are being pushed into serious debt because of these actions of these appalling scammers."

The MP added: "It's also worth pointing out that from the cases we have heard people have been doubly hit by their money being stolen by scammers and then having to pay it back.

"Because the DWP know that it is an advance payment which, as we all know, is a loan."

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