London Daily

Focus on the big picture.
Tuesday, Jun 16, 2026

Benefit scams worth £1bn foiled during lockdown

Benefit scams worth £1bn foiled during lockdown

As much as £1bn in benefit fraud has been prevented from being paid to organised-crime groups in recent months.

But before the scam was spotted, officials unwittingly confirmed thousands of stolen identities.

Fraudsters took advantage of looser rules introduced to cope with a surge of universal credit claims during the pandemic.

BBC News has asked the Department for Work and Pensions for a response.

Wrong hands


In May, a junior civil servant working with High Street banks noticed dozens of claims for universal credit had been made asking for money to be paid into the same bank account.

Further investigation identified more than 100,000 fraudulent claims.

And officials admit they had confirmed thousands of people's identities to the gangs that had stolen them - and passed on their National Insurance numbers.

The Department for Work and Pensions wants to write to those whose data has been compromised.

But BBC News has learned it is struggling to identify many of them and is wary of sending out letters to last known addresses in case they end up in the wrong hands, exacerbating the data breach.

Identity checks


Claimants whose identities have been stolen can face real hardship, as it can be months before their accurate benefits are paid.

Currently, 5.7 million people receive universal credit, almost double the figure for March.

To cope with the surge, identity checks were processed online, rather than face-to-face, and information such as the cost of rent and whether someone had been self-employed taken on trust.

Criminal gangs have attacked several government Covid-19 schemes.

* In May, officials told BBC News about £1.5bn may already have been lost in fraudulent universal credit payments

* Last month, a National Audit Office report found as much as £3bn may have been lost through the furlough scheme

DWP officials have asked the Treasury for £200m over three years, in this spending round, calculating it would enable it to prevent such mass scams and save taxpayers about £500m each year.

It is estimated more than a million claims for universal credit have still to be properly checked, with additional rising concerns tens of thousands of people may have claimed the benefit without declaring they had received government grants to help the self-employed.

However, the Treasury has turned down the request.

Newsletter

Related Articles

0:00
0:00
Close
Government Approves Fast-Tracked Broadcast Merger Reshaping UK's Media Landscape
Resignation of Defence Secretary John Healey Triggers Debate Over UK Military Strategy
Britain Intensifies Diplomatic Efforts to Support US-Iran Ceasefire
Bank of England Faces Tough Interest Rate Choices After Economic Contraction
Belfast Sees Second Day of Anti-Migrant Riots as Police Deploy Water Cannons
UK Economy Shrinks in April as Energy Price Shocks Weigh on Growth
UK to Ban Social Media Access for Children Under 16 From 2027
UK Parliament Opens Week of Fast-Tracked Security and Infrastructure Legislation
Northern Ireland Projects £21 Million Boost From Major Cultural and Sporting Events
UK and Japan Sign Technology Security Pact to Strengthen AI and Supply Chain Cooperation
UK Welcomes US-Iran Peace Breakthrough Aimed at Restoring Strait of Hormuz Shipping
British Forces Intercept Russian Shadow Fleet Oil Tanker in English Channel Sanctions Operation
UK to Ban Social Media for Under-16s Under Landmark Online Safety Expansion
Anti-Immigrant Riots Spread Across Belfast, Raising Security Concerns
Ministry of Defence Opens Europe's Largest Drone Testing Facility in Swindon
Kemi Badenoch Calls for Deregulation to Restore City's Global Competitiveness
UK Housing Market Posts Sharpest June Price Decline in Fourteen Years
NHS Waiting Lists Rise to 7.22 Million as Diagnostic Delays Reach New Highs
Makerfield By-Election Raises Prospect of Labour Leadership Challenge
Bank of England Expected to Hold Interest Rates at 3.75% Despite Growing Policy Divisions
Royal Marines Seize Sanctioned Russian Oil Tanker in English Channel
Prime Minister Keir Starmer Set to Ban Social Media and AI Chatbots for Under-16s
United Kingdom Markets Rally After US-Iran Deal Reopens Strait of Hormuz
Defence Secretary John Healey Resigns Over Military Spending Dispute, Triggering Cabinet Crisis
Royal Navy Takes Part in Trooping the Colour for the First Time in 350 Years
Think Tank Warns Labour's European Union Reset Could Carry Significant Economic Costs
UK Semiconductor Centre and Japan's Rapidus Forge Advanced Chip Manufacturing Partnership
UK and Japan Launch Offshore Wind Compact Backed by £9 Billion in Investment
Starmer and Trump Discuss Iran Peace Efforts and Reopening of the Strait of Hormuz
United Kingdom and Japan Sign £18 Billion Investment Partnership Focused on Clean Energy and Advanced Technology
Barclays Moves to Acquire GoHenry in Bid to Expand Youth-Focused Fintech Services
UK Lupus Patients Show Remission in NHS Genetic Therapy Trial
London Clean Air Zones Linked to Fewer Emergency Hospital Admissions for Respiratory Illness
UK World Cup Scheduling Research Suggests Energy Bill Savings From Off-Peak Usage
UK Economic Anxiety Rises Among Young People Over Long-Term Job Prospects
NHS Expands Meningitis B Vaccination Programme for School Leavers and New Students
London Ultra-Low Emission Zone Linked to Drop in Emergency Respiratory Hospital Admissions
Derbyshire Police Officer Investigated Over Alleged Use of AI-Generated Evidence in Case Files
UK Parents Back Proposed Under-16 Social Media Ban as Online Safety Concerns Grow
Four Palestine Action Activists Jailed Over Sabotage Attack on Israeli-Linked Arms Facility
Barclays to Acquire GoHenry in Push to Expand Digital Banking for Children and Teenagers
UK Government Reaffirms Defence Spending Commitment Amid Cabinet Pressure and Political Disputes
Belfast Unrest Prompts Security Review as Paramilitary Activity Comes Under Renewed Scrutiny
SpaceX IPO Pushes Elon Musk to Become World’s First Trillionaire After Record Valuation Surge
United States and Iran Near Landmark Peace Framework as Negotiations Reach Final Stages
UK Competition Watchdog Investigates Ryanair Family Seating Charges
Imperial College Study Links London Emissions Charges to Lower Hospital Admissions
Scottish First Minister Launches US Trade Initiative Ahead of World Cup Match in Boston
Fifteen Million Workers Gain Expanded Sick Pay Rights Under UK Reforms
British Retail Investors Secure Record Participation in SpaceX Share Offering
×