85% of Benefit Fraud Tip-offs Lack Enough Evidence Resulting in Cases Being Dropped!

Every year, thousands of people receive letters from the government informing them that they will be investigated for fraud, and every year, we get thousands of emails from the same people who can’t imagine why they are being investigated, and wonder who would accuse them of it. What’s more amazing than this though, is that 85% of those people have been falsely accused.

This is according to new information disclosed due to a freedom of information request. Sent to the Department for Work and Pensions, it has uncovered that between 2010 and 2015 the government closed 1,041,219 alleged cases of benefit fraud put forward by the public. In 887,468 of these cases, no further action was taken due to a lack of evidence.

Considering the stress that recent government campaigns have put on the public to report people they think could be wrongly claiming benefits, this is an alarming figure. Regardless of the outcome of a case, people must undergo interviews under caution, sometimes have their benefits stopped for the duration of the investigation, and go through untold amounts of stress and worry in their lives, and so must those around them.

With 85% of this completely unnecessary, there have been outcries for the public’s ability to anonymously report benefit fraud to be stopped. If you’re unfamiliar with how the system works, people are able to either telephone a hotline or submit an online form on the DWP website to anonymously report suspects. Fine details such as their eye colour, piercings, scars, tattoos and other distinguishing features, can be listed to help the government identify people.

So, why is such a large volume of people wrongly accused on a daily basis?

The Facts and Figures about Benefit Fraud Claims

On the one hand, there is a degree of error within the department itself. According to the Guardian, government statistics show that in the financial year 2012-2013, an estimated £1.6 billion was underpaid by the DWP. Aside from this, another £1.1 billion is lost through errors by claimants, while £700 million disappears due to errors by the DWP.

In the same year, a further 0.9% of total benefit expenditure was overpaid following claimant errors. These occur when claimants fail to report changes in their circumstances, or the information provided is incomplete or inaccurate, but there is no fraudulent intent.

When you look at fraudulent claims specifically, they accounted for just 0.7%, or £1.2 billion, of total benefit expenditure. However, Ipos MORI published a survey in 2013 which demonstrated just how hugely skewed the public’s perception of benefit fraud is. According to the results, the public believed that 24% of benefits were fraudulently claimed.

If the public believe that benefit fraud is 34 times greater than the reality of the figures, it is not so shocking why they would report people so freely. But why is this perception so different?

Government encouragement

Given the frequency of the multi-media campaigns employed by the government, it is easy to see how people have become so suspicious. Many experts and politicians alike have been pointing the finger at the Tory party for using this as a distraction tactic. Owen Smith, Labour’s Shadow Secretary for Work and Pensions, told the press: ”In a bid to distract people from the brutal impact of their cuts, the Tories have been trying desperately to turn communities against each other.

“Time and again they are labelling people who rely on our social security system, like low paid workers on tax credits or universal credit and bedroom tax victims, as ‘scroungers’. This is clearly having some impact, as thousands of honest people are being falsely accused of fraud. If this Tory government had any decency they’d realise how destructive this is and change course, but I’m not holding my breath.”

Perhaps budget cuts are not the main cause of the distraction though. According to figures reported by the Mirror, £16 billion is lost each year due to tax fraud. However, these large corporations responsible for tax evasion tactics have huge amounts of power, money and resources, so the government may feel that it is simply easier to chase benefit fraud.

Large corporations have the ability to fuel teams of lawyers to wrap up the processes in red tape, potentially making the Government and political party in power look weak. In terms of the political gains that would be achieved from tackling these companies, in the end it is not worth the battle.

Regardless of the motives, there is a very real problem for a large section of the population, as the majority of people being investigated for benefit fraud do not seek legal help. In most situations where you’re faced with legalities, you do have rights, so you should always do your research before giving up.

What you can do for yourself

In May 2015, we wrote about the Benefit Fraud Investigator, who it was found had been falsifying witness statements in order to bring about prosecutions. In our minds, the system is just as corrupt as the people they claim have fraudulently claimed benefits.

People often tell us that they have suspicions about who may have reported them, but in many of these cases, we suspected that they were based on a lack of substantial evidence. Finally, we have the figures to prove it, but it still doesn’t help the thousands of people that must endure the investigation process.

At Hylton-Potts, we urge people to contact us as soon as possible, as we can ensure that none of our clients have to attend the “Interview under Caution”, which can be a distressing process. Instead, you can provide them with a written mitigation package of a written statement, character references and medical reports.

If you think you’ve been wrongly accused of benefit fraud, don’t hesitate to get in touch with the experts at Hylton-Potts. Call us on 020 7381 8111, or send us an email to [email protected]

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