Region braced for surge in benefits fraudsters

A new task force is to be set up in the region to deal with an anticipated rise in fraudulent claims following the rollout of the reforms, which tens of thousands of people across Yorkshire are expected to lose out under.

From January 7, households where at least one person earns more than £50,000 will have any child benefit reduced or stopped.

And later this year, most means-tested benefits will be replaced with the universal credit while disability living allowance will be replaced with personal independence payments.

Simon Clements, head of the CPS welfare, rural and health division, said: “I know from my experience in mainstream crime that as money gets tighter, acquisitive crime goes up – and this is essentially acquisitive crime. We do anticipate an increase and the investigative response to that change has been to create a Single Fraud Investigation Service.”

The Single Fraud Investigation Service (SFIS) will bring together the Crown Prosecution Service (CPS) and investigators from the Department for Work and Pensions (DWP), Her Majesty’s Revenue and Customs (HMRC) and local authorities for the first time.

A predicted £5.3bn is already lost across the UK to tax credit and benefit fraud each year – or £165 every second.

The DWP and local authorities currently investigate benefit fraud cases separately while tax credit fraud is investigated by HMRC.

Bringing them together and linking them to the CPS is expected to enable better detection and investigation of fraudulent claims to take place.

“Investigators want to try and have a more joined-up approach so that they capture the totality of the fraud,” said Mr Clements.

“Over the next couple of years, if all goes to plan, we anticipate an increase of up to 20,000 cases a year – that’s double the number now. From our perspective it’s trying to make sure we can match the increase in caseload with resources.

“What we want to do is incrementally increase our capacity and our resilience to deal with that work.”

It will also enable to CPS to more thoroughly prosecute the most complex cases, which can involve fraudulent claims across a number of benefits administered by different agencies – many of which may slip through the net.

Nicola Wheeler, head of the CPS division’s Leeds-based north-east unit, said: “What we have found in the past and sometimes found frustrating, particularly with tax credits, is knowing you’re putting half a picture before the court. The huge advantage of this joined up approach now is we’ll be able to give them the full picture.”

The new task forces are being piloted in Corby in Northamptonshire, Wrexham in North Wales, Hillingdon in London and Glasgow.

The pilot schemes have given each area’s local authority the power to investigate all offences, making it easier for residents to report concerns about anyone they suspect of fraud by giving them a single point of contact.

“They are really pathfinders and the intention is to incrementally roll out that process,” said Mr Clements.

The taxpayer is already beginning to reap the benefits from a more joined-up approach to tackling welfare offences after a team of 21 former DWP staff joined the CPS in April last year to form the new welfare, rural and health division.

It is estimated the move will wipe £2m a year off the annual £3.5m bill for prosecuting benefit fraud cases across England and Wales.