Fraud Investigations - What is Benefit fraud?

Benefit fraud is treated as a criminal offence. You might be considered to have received benefits or a grant through fraud if you did any of the following:

a) False representation for claiming benefits

• This means that you give information or evidence which you know to be false, or
• Fail to notify a change in your circumstances which you know affects your benefit, or
• Cause or allow another person to fail to notify a change which you know affects their benefit.

or

b) Dishonest representation for claiming benefits

• This means that you knew that you were acting dishonestly when you gave incorrect information or evidence, or failed to report a change.

Special rules allow for investigation and prosecution where you are suspected of benefit fraud. They apply to any benefit that you receive from:

• The Department for Work and Pensions (DWP) (which pays most benefits through either Jobcentre Plus or Pension Service or Disability and Carers Service)
• HM Revenue and Customs (HMRC)
• Social Security Scotland (SSS), in Scotland
• Department for Communities (DfC), in Northern Ireland
• Local authorities/councils

New DWP powers 

From 2026, the DWP has new powers to help identify benefit fraud and incorrect payments. 

The DWP can require banks and other financial institutions to provide limited information to help check whether someone is entitled to certain benefits. This currently includes Universal Credit, Pension Credit and Employment and Support Allowance. The information can be used to identify cases that may need further investigation. 

The DWP also has new powers to recover some debts directly from bank accounts. In serious cases, it can apply to a court to temporarily disqualify someone from driving. However these recovery powers are intended to be used as a last resort. 

Get advice

It is very important that you get advice if you have been accused of fraud. You can use our Find an Adviser tool to find a local advice service.