Benefit claims being 'cleansed' prior to Universal Credit - DWP

Published by Ross Macmillan for 24dash.com in Housing and also in Central Government, Communities, Local Government

Benefit claims are in the process of being "case cleansed" ahead of the roll out of Universal Credit, the Government has said.

The Department for Work and Pensions (DWP) said that over 1,000 dedicated staff were involved in the process to ensure claims are "accurate and free from fraud" before they enter the Universal Credit system in 2013.

Universal Credit - which will be a single monthly payment - will replace Working Tax Credit, Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance and income-related Employment and Support Allowance.

Under the plan, social housing tenants will lose the right to have their housing benefit paid directly to their landlord. Pensioners and vulnerable people, however, will be exempt and will be allowed to retain the choice to have it paid to their landlord.

Government figures show that currently £3.2 billion was lost to fraud and error in the benefits system between April 2010 – March 2011.

It says Universal Credit will make it much easier to catch fraudsters as it will calculate benefit levels using real-time information linked to the PAYE system.

By picking up financial irregularities, such as earnings whilst claiming unemployment benefits, the Government says it will remove the main opportunities for fraud and error in the system.

Welfare Reform Minister Lord Freud said: “Universal Credit will revolutionise the way we pay people benefits. The current system is made up of a complicated array of benefits, entitlements and add-ons, which can leave it susceptible to fraud.

“But Universal Credit will dramatically reduce the chances of fraud entering the system. It will cut down on error as it will be much easier to understand and administer. It will simplify and automate the benefits system to ensure taxpayer’s money is going to those who need it the most.

“Universal Credit will also reduce the incentive for fraud by making sure people are better off in work than on benefits.”

The first applications to Universal Credit will be made in October 2013, with all working age claimants expected to have moved on to Universal Credit by October 2017.