Welfare Fraud: Serious and Organised Crime

12. What steps she is taking with Cabinet colleagues to tackle fraud in the welfare system by serious and organised criminal gangs.

The Department works collaboratively with other Departments and with law enforcement agencies on investigations of benefit fraud carried out by organised criminal gangs. New powers in the Public Authorities (Fraud, Error and Recovery) Bill, which was mentioned earlier by the Minister for Employment, will strengthen our ability to tackle organised crime by modernising and enhancing our investigation powers, granting DWP officials powers of search and seizure, and ensuring that those who defraud the public sector face appropriate consequences.

I welcome the new powers in the fraud Bill, and note the huge increase in pension credit fraud in recent years. Can the Minister explain how capital fraud and fraud in which recipients stay out of the country for longer than the rules require, which together account for 50% of all pension credit fraud, will be targeted under the new rules?

My hon. Friend is right to raise this issue. The eligibility verification measure in the new Bill will do just that, providing a crucial data feed to help us identify fraud that relates to pension credit as well as to universal credit and employment and support allowance. This will flag up claimants who are potentially in breach of eligibility under capital and abroad criteria, so that we can start to lower the unacceptable level of fraud and protect the public purse.