UK benefits fraud costs taxpayers over £25 million a week

Government data show that benefit fraud cost UK taxpayers more than £25 million each week, amounting to roughly £1.3 billion in the last financial year. The Department for Work and Pensions (DWP) said most of the loss came from fraudulent Universal Credit claims, which accounted for about £1.04 billion of the total. Fraudulent housing benefit and pension credit claims added another £285 million.

The total represents a rise of more than one‑third since 2021‑22, when fraud was estimated at £982 million, and now makes up nearly one‑fifth of the £6.5 billion lost to welfare fraud overall. Hundreds of claimants were found to be hiding cash savings, investments and other assets that should have disqualified them from benefits.

Conservative work and pensions spokesperson Helen Whately warned that the system is being “gamed”, while Reform UK’s Lee Anderson blamed Labour for failing to curb the abuse. Specific cases cited include a 58‑year‑old who claimed £40 000 in Universal Credit while holding the same amount in savings, and a 47‑year‑old who received benefits despite inheriting £44 000.